New
December 30, 2022
By
Swathi v prabhu

Point of sale or POS system

Any business you open which requires selling goods or making sales requires a point of sale or Pos system. The point-of-sale system or point-sale software is both used interchangeably.

The point of sale of the pos system is hardware and software used to make sales, accept payments, and provide bills to customers. It is a computerized system in a commercial outlet that helps you focus on selling actual goods.

Selecting the right Pos for your business can be quite tricky but in this article let us dive deep into the features, benefits, and types of point of sale or pos systems.

What is a POS and how does it work?

According to its definition, a point of sale or point of purchase is the time and place in your retail store where transactions are completed. This is also known as the point of purchase from the customer’s point of view. But how does it work?

The most basic function of a Pos system is to calculate the sum of items a customer wants to purchase, process the payment and reflect the inventory stock level to reflect the level of sales. A typical Pos workflow looks like the following:-

1. A customer picks a product from your inventory

2. The point of sale or pos system determines the total price

3. Payment is made by the customer

4. The point-of-sale transaction is finalized

But why should you choose a point of sale or pos system in the first place? What benefit does it provide? Let us understand the important benefits of a Pos system.

Benefits of a POS system

The Modern-day Pos system provides much more functions than just recording sale transactions. They perform other business functions and inform important decisions such as:

1. Centralizing your inventory management

2. Collecting and visualizing sales data in real-time

3. Building in-depth customer profiles

4. Accepting payments anywhere

5. Improving in-store sales

6. Opening new stores faster

7. Adapting to changing business needs

These are some important benefits that should tempt you into having a point of sale or pos system. However, before selecting your Pos system, make sure it has all the important features which are essential in any Pos system.

Features that are a must in a POS system

The following features are a must in a Pos system, without which it is not a good investment. The following essential features which you must take note of before purchasing a point of sale or Pos system for your business include the following:-

1. Integrated payment processing

2. Mobile checkout

3. Multichannel inventory management

4. Staff management

5. Centralized reporting and analytics

6. Flexible order fulfillment options

7. Multi-store management

8. Customer relationship management

9. Apps and add-ons

10. Reliable support

These are the following important features that must be considered before purchasing a Pos system.

Types of POS systems

Although there are many varieties of Pos system depending on the type of business, the two main types based on which the rest all are formed are:-

On-premise Pos system- requires you to be available on-site to use it. Terminals are the most common type of on-premise point-of-sale system.

Cloud-based Pos system- in the age of technology, this Pos system is completely cloud-based and offers flexibility because you can now run your business, and accept payments from customers with the help of any mobile device via an internet connection.

The remaining point of sale or Pos systems are derived from the above two types of systems.

How to buy the best POS system?

A point of sale or Pos system is an important investment in your business, which must be made after due diligence. Here are some steps which can ensure you buy the best Pos system

1. Ask your network- as a businessman, you have your group of businessmen; it is always wise to ask their opinion before investing in one.

2. Check reviews- with everything online, you can easily find reviews to buy the best Pos system. Apps like amazon, and Shopify will provide you with legitimate reviews from buyers

3. Try for free- companies selling Pos systems are always willing to provide free demo services so that you can decide for yourself whether you want to invest in this version or choose something else.

4. See it in the real world- use old school methods and find shops selling Pos systems and analyze if it is suitable for your business.

FAQS

1. What is a point-of-sale system used for? 

A point-of-sale (POS) system is what lets your business take payments from customers in exchange for products and keep track of each sale you make. A POS can be set up to help you whether you sell from a physical store, online, or both.

2. What does a Pos system include?

A retail point-of-sale system typically includes both software and hardware. The POS software is installed on a mobile device like a smartphone or a tablet.

3. What exactly do we mean when we say "point of sale"?

Customer purchases are tallied up at the point of sale. Customers are at the point of sale when they check out online or select a product from your store.

4. Why is point-of-sale (POS) so vital to a company?

A POS system, in general, aids you in improving your procedures for your consumers. This involves decreasing long waits, checking items more promptly, and paying bills more rapidly, among other things.

Related Blog Post