How to choose the right POS system for your retail business

In today’s fast-paced and competitive business landscape, choosing the right point of sale (POS) system is a critical decision that can significantly impact the success and efficiency of your business. 

As technology evolves, POS systems have become a cornerstone of modern retail operations, empowering businesses to streamline transactions, manage inventory, and gain valuable insights into customer behavior. Indeed, today’s retail point of sale systems are powerful business management tools whose functionalities extend well beyond simple payment processing functionalities.

But with so many options available, selecting the perfect POS system tailored to your specific business needs can be overwhelming. To navigate this vital decision-making process, this article explores the key criteria to consider when choosing the ideal POS system for your business. 

Can a store run without POS software?

Technically, you can run your business without POS software—and many do. Would you want to run your business without it? Unlikely. Running your operation without a POS system causes significant and avoidable challenges and inefficiencies. 

POS software is crucial for today’s retailers because it helps streamline operations and customer transactions. Without a POS system, you would need to resort to manual processes, which are time-consuming and error-prone and hinder the overall efficiency of the business. Automation, especially for functions like retail inventory management, is one of the significant benefits of retail POS systems.

How do I buy good retail POS software?

To purchase good retail operations software that meets your business needs and enhances your operations, here are some steps to follow:

Assess your business needs: Understand your specific business requirements, including the size of your retail store, the type of products you sell, the volume of transactions, and any unique needs. Once you fully understand your business needs, you can identify the necessary features and functionalities in the POS software. For example, do you need a virtual terminal in addition to POS terminals to accept payment?

Research different POS providers: Explore various POS providers and their retail POS solutions. Take the time to find reputable companies with positive customer reviews and a track record of providing reliable POS solutions for retailers.

Check features and functionality: Evaluate the features and functionalities of each POS software option. Some essential capabilities you’ll want to consider include inventory management, sales tracking, reporting, customer management, and integration with payment processors. Additional features like loyalty programs, employee management, and multi-channel selling may also be worthwhile.

Consider scalability: Examine whether the POS software can scale with your business as it grows. A scalable solution can accommodate additional retail locations, products, and users without the need for significant changes.

Examine integrations: Ensure that the POS software can integrate seamlessly with other essential business tools, such as accounting software, eCommerce platforms, and retail inventory management systems. Integration streamlines operations and reduces manual data entry.

Prioritize user-friendliness: Choose POS software with an intuitive and user-friendly interface. A POS system that’s easy to navigate will minimize training time and reduce the likelihood of errors during transactions. 

Consider mobility and cloud-based solutions: Decide whether a cloud-based retail POS system or a mobile POS (mPOS) solution aligns better with your business needs. Cloud-based systems offer accessibility, automatic updates, and data backup, while mPOS devices provide flexibility and enhanced customer service within the store.

Scrutinize security and compliance: Prioritize the security of customer payment information and ensure that the POS software complies with industry standards, such as the Payment Card Industry Data Security Standard (PCI DSS).

Evaluate customer support and training: You want a POS provider that offers reliable customer support and comprehensive training for your staff. Responsive support, whether via telephone, email or online chat, can help you troubleshoot issues quickly, while proper training and onboarding ensure the system is used effectively. 

Assess pricing and affordability: Assess the overall cost of the POS software, including hardware, software, monthly subscriptions, and transaction fees. Consider the value provided by the software and whether it fits your budget.

Request demos and trials: Before making a final decision, request demos or trials of the POS software to test its usability and features. Just like you’d test drive a car before buying, you should do the same with your POS system. This hands-on experience will help determine if the retail POS system meets your expectations.

Check references: Ask the POS providers for references from other retailers who’ve used their software. Contact these references for feedback on their experience with the POS system and the provider’s customer support.

By following these steps and conducting thorough research, you can confidently select good retail POS software that aligns with your business goals, enhances your retail operations, and improves the overall customer experience.

Most important retail point of sale features

There’s no one-size-fits-all POS solution for any given business since needs will vary between retailers and their specific circumstances. For instance, a bulk-food store would benefit from a wholesale POS system that meets its specific operational requirements. That said, a well-rounded POS system will include some or all of the following features. 

Inventory management: Effective inventory management is crucial for retailers to track stock levels, manage product variations, and avoid stockouts or overstocking. Look for features like real-time inventory tracking, automatic stock updates, and the ability to set reorder points.

Sales tracking and reporting: Comprehensive sales tracking and reporting features provide valuable insights into your business performance. Analyzing sales data helps identify trends, popular products, and areas for improvement, empowering data-driven decision-making.

Customer management and CRM: A built-in customer relationship management (CRM) system allows you to track customer information, purchase history, and preferences. You can then use these insights to conduct targeted marketing campaigns and build loyalty programs.

Omnichannel selling: Multi-channel selling capabilities are vital for retailers with both online and offline sales channels. Choose a POS system that integrates with your eCommerce platform to seamlessly manage inventory and orders across all channels.

Integration with payment processors: Smooth integration with various payment processors ensures quick and secure payment acceptance. Look for a POS system that supports multiple payment methods, including credit/debit cards, mobile wallets, and digital payments.

Employee management: Features like time clock integration, staff performance tracking, and role-based access contribute to efficient employee management and optimized scheduling.

Customizable checkout process: A flexible and customizable checkout process enables retailers to tailor receipts, apply discounts, and split payments, providing a smooth and personalized customer experience.

Mobility and cloud-based solutions: As mentioned, mPOS capabilities offer flexibility and efficiency by enabling staff to process transactions from anywhere within the store. Cloud-based POS systems, meanwhile,  provide accessibility, real-time updates, and data backup.

Integration with other business tools: Check if the POS system can seamlessly integrate with other essential business tools such as accounting software, inventory management systems, and marketing platforms to streamline operations.

User-friendly interface: An intuitive and user-friendly interface ensures that staff can quickly learn and efficiently use the POS system, reducing training time and minimizing errors.

By prioritizing these important retail POS features, you can select a comprehensive system that improves inventory control, enhances customer engagement, streamlines sales processes, and ultimately contributes to the growth and success of your retail business.

Simple inventory management for retail

Simple inventory management for retail involves implementing straightforward and effective methods to track and control stock levels. Your retail POS system is a crucial ally in this regard. Here are some key steps to achieve simple inventory management:

Regular stock counts: Conduct regular physical stock counts to accurately track the quantity of each product in the store. Depending on inventory size and turnover rate, you can do this weekly, monthly, or as needed.

Organization and labeling: Organize your inventory in a logical manner and label each product with a unique identifier or barcode. Doing so simplifies the process of identifying items during stock counts and sales transactions.

First-in, first-out (FIFO) method: Adopt the FIFO method for managing perishable or time-sensitive products. By selling older inventory first, you’ll avoid waste and ensure fresher products are always available.

Minimum and maximum stock levels: Determine the minimum and maximum stock levels for each product based on sales data and lead times. Reorder products when the stock level reaches the minimum threshold to prevent stockouts, and avoid overstocking by stopping orders when reaching the maximum threshold.

Automatic reordering: Implement automatic reordering for fast-moving items. Using your retail POS system, you can set up alerts or integrate the inventory management system with suppliers to initiate orders when stock levels are low.

Inventory management software: Consider using inventory management software that simplifies tracking, automates reordering, and provides real-time insights into stock levels and sales trends.

Streamline supplier relationships: Work closely with reliable suppliers to negotiate favorable terms, including lead times and pricing, to ensure smooth supply chains and minimize inventory-related issues.

Employee training: Train store staff on proper inventory management procedures to reduce errors and ensure everyone is familiar with the inventory tracking system.

Regular analysis: Review inventory reports and sales data regularly to identify slow-moving items, bestsellers, and trends. Then take this information to make informed decisions about restocking and product assortment.

Seasonal inventory planning: Anticipate seasonal demands and adjust inventory levels accordingly to meet customer needs during peak periods and prevent excess inventory during slower seasons.

By implementing these simple inventory management practices, you can optimize stock levels, reduce costs, and enhance overall efficiency—leading to better customer service and improved profitability.

How to manage inventory with a mobile POS system

As mentioned above, an mPOS system is a portable handheld device (usually a tablet) that enables businesses to process transactions and conduct various retail-related operations on the go. It can also be used to manage inventory. 

One way to manage inventory with a mPOS system is with real-time tracking. For instance, use the mobile POS system’s real-time updates to track inventory levels as sales are made. This ensures accurate and up-to-date stock information, allowing you to monitor product availability and prevent stockouts.

Another way to leverage your mPOS to manage inventory is with barcode scanning, which allows you to add or deduct items from the inventory quickly. By scanning product barcodes, you can update stock levels efficiently and reduce the risk of manual data entry errors.

Lastly, use your mPOS system to centralize inventory management, particularly if you’ve got multiple sales channels. This enables consistent stock updates across all channels—helping to avoid overselling and maintain accurate stock records.

Use software to streamline retail operations

Retail POS software streamlines operations by automating manual tasks, centralizing data, enhancing customer experiences, and providing valuable insights for data-driven decision-making. So how can retail POS software help you?

First, it automates various manual tasks that would otherwise consume significant time and effort. As we already discussed, retail POS software  automates transaction processing, inventory management, and sales tracking, reducing the need for manual data entry and increasing operational efficiency. This automation speeds up checkout processes and minimizes the likelihood of human errors.

Second, retail software centralizes data across different aspects of operations. Inventory management software, for example, maintains real-time updates on stock levels, enabling retailers to make informed decisions about inventory restocking and order fulfillment. Furthermore, centralized data provides a holistic view of customer preferences and purchase history, enabling customized marketing campaigns through customer relationship management (CRM) software.

Third, software enhances customer experiences. For instance, mobile apps and eCommerce integration allow customers to access product information, place orders, and participate in loyalty programs from their devices. Likewise, software-enabled contactless payment options streamline transactions, providing convenience and safety to customers during checkout.

Lastly, software provides valuable insights through data analytics and reporting tools. This information allows you to analyze sales trends, customer behavior, and inventory performance to make data-driven decisions. You’ll be able to identify opportunities for improvement, optimize stock levels, and tailor marketing strategies to customer preferences—ultimately increasing sales and customer satisfaction.

Retail POS software streamlines retail operations by automating tasks, centralizing data, and enhancing customer experiences. It gives you the power to build a competitive edge in the fiercely competitive retail industry.

Retail point of sale payments and invoicing

Retail point of sale (POS) payments and retail invoicing are essential components of a seamless and efficient transaction process for retail businesses. Many business owners are curious about how payments are processed with a POS system and how invoicing can be integrated. Let’s explain how they fit into the POS picture.

Retail POS payments: A retail POS system is the terminal or software used to process customer transactions at the point of sale. It allows customers to pay for their purchases using various payment methods, such as credit/debit cards, mobile wallets, cash, or digital payment solutions. Here’s how retail POS payments work:

1. Transaction initiation: When a customer is ready to make a purchase, the POS user initiates the transaction on the POS system by selecting the items being purchased or the services offered.
2. Payment method selection: The customer chooses their preferred payment method, such as swiping or inserting a card, tapping a mobile device for contactless payment, or providing cash.
3. Transaction authorization: The POS system communicates with the payment processor to authorize the payment. The payment processor verifies the customer’s payment details and checks for available funds before approving or declining the transaction.
4. Receipt generation: Once the payment is approved, the POS system generates a receipt for the customer, detailing the purchased items, the total amount paid, and any change given.
5. Inventory updates: Simultaneously, the POS system updates the inventory records, reflecting the sold items and adjusting stock levels in real time, which helps maintain accurate inventory management.

Evidently, there will be other steps depending on the POS setup and business, but these are the key ones. 

Next, let’s look at invoicing—an essential aspect of business-to-business (B2B) transactions whereby businesses provide detailed bills to their customers for goods or services rendered. Here’s how invoicing works in retail:

1. Order details: When a business receives an order from another business or a corporate client, it prepares an invoice that itemizes the products or services purchased, their quantity, unit price, and any applicable taxes.
2. Payment terms: The invoice includes the payment terms, such as the due date, acceptable payment methods, and any discounts or late payment fees.
3. Invoice delivery: The invoice is then delivered to the customer, either electronically or via a physical copy.
4. Payment processing: The customer reviews the invoice and makes the payment as per the agreed-upon terms.
5. Accounts receivable: The business maintains records of invoices and tracks accounts receivable, which is the amount owed to the business by its customers.

When choosing a retail point of sale (POS) payments and invoicing system, consider the system’s ability to support a range of payment methods, including credit/debit cards and digital payments. In terms of invoicing, evaluate features for creating detailed invoices with customizable templates and payment terms. 

Conclusion

Choosing the right retail POS system for your business requires careful consideration, as you can see. Make sure you get the right POS solution by booking a free consultation with one of our Payment Experts. We understand your unique requirements, will discuss your business goals, and guide you through the available options.