POS software is growing rapidly in recent years. More than anything, the following statistics show how this powerful point of sale technology has made the lives of grocers, retail store owners and other business owners easier and more efficient. In fact, POS software is essential for modern business. Every modern-day store, no matter if it's big or small, won't be complete without POS software

According to Grand View Research, the market size value of POS software reached $9.3 billion. And it’s expected to reach $18.1 billion by 2027. 

Great point of sale software has countless benefits for businesses. It will not only help with simplifying daily business tasks and inventory management, but can also help grow the business with their built-in loyalty and marketing software, as well as providing business intelligence. If you have searched many times to know more about POS software but still have no clue what it is all about and whether you can use POS software for your business, don't worry, we are here to help. This article brings you a broad scope of what POS software is (including definition, benefits, features) and helps you choose the right one for your business. So, let’s dive into it.

1. What Is Point-of-sale (POS) Software?

Point of sale software is the software that traditional retailers use to sell directly. It can be a cash register, a computer, or a tablet where cashiers can enter products, check out and perform financial transactions. Most POS software will also sync with the inventory to keep everything in balance. In order to have a deep understanding of this solution, you can view an example: Woocommerce POS and Magento POS. 

There are 2 main types of POS software: On-premise and Cloud-based.

On-Premise POS software: 

• On-premise POS software requires you to be on location in order to use it. The terminal is the most popular of on-premise POS.
• A typical POS terminal software will integrate with a credit card scanner to process electronic payments, a cash drawer to secure cash, and a receipt printer.
• For some retail businesses, owners also connect the POS to the barcode scanner to easily look up product information and make payments faster.
• With a POS terminal, you can process a sale in a flash. All you have to do is add the items to your cart, choose a payment method and press OK.
• Besides, a POS terminal also allows you to create and edit customer information instantly. Once you've completed an order, you can ask your shoppers for their name, phone number, address, and more, and then enter it right on the touchscreen.

Cloud-based POS software: 

• It is also known as software as a service POS solution. Cloud-based POS software stores data in the cloud, which means you can access it from anywhere and anytime you want with an internet connection.
• It is now more popular than ever. The market size of cloud-based POS software was reached at around $1.29 billion in 2019 and it’s expected to grow at a rate of more than 21.38% by 2026.
• It is integrated with POS hardware, uses an internet infrastructure to access data through a remote server. In other words, the data is automatically backed up and synchronized making it easier to update information. Cloud solutions have the ability to integrate multiple sales channels allowing businesses to enjoy the benefits of centralized storage, memory, processing, and bandwidth.
• With cloud-based POS software, businesses and retailers can breathe a sigh of relief knowing that their information will always be secure. The information will be stored and synchronized electronically and can be easily restored.

There are other types of POS solutions that belong to one or both of the above categories:

Mobile POS:

An MPOS (mobile point of sale) is a smartphone, tablet, or specialized wireless device that performs the functions of a cash register or electronic point of sale terminal. Any smartphone or tablet can be converted to mPOS with a downloadable mobile app.

The use of mPOS enhances the customer experience by increasing service speed and waiting times. A mobile POS also offers multiple payment options.

mPOS is an ideal for businesses that are frequently mobile like home and repair services, market vendors, food trucks, sports venues, pop-up shops.

Tablets:

These POS systems run on tablets like Android or iPad, acting as a primary or complementary POS to your central POS. This is also an mPOS.

Tablets are ideal for businesses that sell products with lots of details, features and cases like self-service options, event sales and pop-up shops.

Desktop:

POS systems that run on a desktop are typically on-premises solutions that are attached to a payment terminal. This is the main POS station in a permanent traditional store, and businesses will likely want to add mPOS in addition to the desktop setup.

This is ideal for food-based businesses helping business owners to reduce lines and wait times.

POS apps:

POS apps work with your hardware and other compatible devices to let you access data and manage your business operations.

The POS app is designed best for businesses that want flexibility and customization without needing much technical resources or budget.

Open-source POS:

Point-of-sale open source software is computer software whose source code is freely available in the form of text. In this case, the source code is a license that is publicly disclosed by the copyright owner. That way, everyone can edit or change the source code and distribute the update. That means, it allows companies to use their source code to build custom solutions with their platform. One study found that open source point of sale software can save $60 billion per year. What a great gift for a business owner!

Multichannel POS:

Omnichannel POS systems give business owners the ability to sell in-store, online, and on the go — all from one centralized program. An omnichannel POS can integrate with many different commerce channels, an increasingly important ability to help you reach the maximum of your potential customers. It includes your own point of sale website, third-party online marketplace, your store, pop-up store, event sale, wholesale, social media, and more.

Best for: Ecommerce sellers who plan to sell in-person; omnichannel online brand.

Retail POS

Retail POS is designed with brick-and-mortar stores in mind with features like inventory management, forecasting, and omnichannel selling. It is suitable for Pop-up stores, brick-and-mortar stores in a traditional retail environment.

Restaurant POS

A restaurant POS not only works to handle the workflow and transactions for a food and beverage business, but also possesses many capabilities such as menu planning and costing, ingredient-level tracking, dish customizations, and self-serve ordering.

This point of sale software was born out of the desire to meet restaurant based businesses needs.

2. Why Do You Need POS Solution?

So, if you are wondering whether your business needs a POS solution or not, here are top 7 reasons why you should use it for your business. Let’s check it out:

Save Time And Money With Your All-In-One POS Solution

Time and money management is a daunting but crucial issue for any business. Business owners who want to save time and effort in running their business, and all in one POS software will help you do that.

For reasons:

• POS software is usually very easy to use and you don't need to spend too much time training staff.
• The POS system also helps speed up the checkout process during rush hours, helping to drive more sales for your business.
• You can also easily track financial statements through the real-time reporting feature.
• A point of sale inventory system helps you avoid unnecessary losses. This is especially important if you are running an F&B business with perishable goods.
• In addition, it also reduces human errors as it automates many of human manual tasks and data collection.

Run Your Business From Anywhere With A Cloud-Based POS System

Cloud-based POS system that stores data on the internet. That means you can access your data anytime, anywhere, helping you run your business with ease, especially when you are on the go alot and don't always have time to go to the store to check everything.

Manage Inventory Better

All business data information, including sales, customer information, employees, amount of inventory, will be stored in a single place. Easily and quickly track which products you've sold, how many products are there in the warehouse, which products are best-selling and, importantly, how much your store earned daily, monthly or annually.

These precise numbers and data will help you make smart business decisions that help increase sales and profits.

Manage Staff Better

Managing staff effectively can be considered a difficult challenge for most businesses. However, a smart POS software will help you with that through its employee management feature.

You can easily manage employee information, track the number of hours worked by each employee, track the amount of revenue each employee generates and compare. From there, easily identify and reward the best performers to motivate your entire team to do better.

Better Customer Experience And Loyalty

If you are running a retail business, customer experience might be the first concern. Positive customer experience is a critical part that can lead to business success and satisfied customers convert to be loyal ones who help in boosting revenue.

So, how does a POS software help you boost your retail business? Because it helps you complete the process checkout faster. If you have a POS software, you can use tablets, laptops or even smartphones to complete the transactions anywhere in your store.

You can leverage your POS to provide related products via cross-selling features. This feature allows you to offer items that are related to the item the customer is buying. For example, if a customer buys a cat house, that means maybe the customer owns a cat and your staff can offer him cat food products that are on sale.

It may take a lot of effort to provide the best customer experience, but it's worth it. Because for this reason: Acquiring a new customer costs 7 times more than maintaining an existing one. Therefore, creating a good experience will delight your customers and ensure that they will continue to do business with you in the future.

Easy Payment Method

Nowadays, technology is evolving day by day and so does the payment method. Carrying cash around has become outdated. Instead, customers prefer to go cashless and make payment online using debit cards, e-wallets, UPI, etc.

Using advanced POS software helps you bring convenience and ease to customers in the payment process. In addition, it saves customers' valuable time and online payment brings peace of mind and can increase the reputation of the business.

Now you have explored the benefits of POS software, so the question is what are the must-have features for a powerful POS software that can accommodate your needs? Keep reading.

3. What Are The Outstanding Features Of POS Software?

If you are choosing a POS software for the first time, start making a list of the features you must have for your business. Alternatively, you can seek advice from fellow business owners who are operating in a similar space or contact us for more detailed advice on product features.

Team Management

You may be surprised to learn that POS software can help you manage your employees. This software allows you to manage employees by tracking working hours and sales performance if applicable. You can also schedule employee shifts, track the hours they work, and generate reports detailing their performance.

This helps you figure out who your best employees are and train those who need help. In addition, this software also allows setting custom permissions for managers and employees. You can completely control who can access to your POS backend and who can access to your POS front end to avoid cheating in sales process.

Customer Relationship Management

Strong customer relationships are essential to business success. According to Gartner Group, 80% of your future profits will come from only 20% of your current customers. 

A powerful POS software should have a customer relationship management (CRM) feature to track all customer data. Your POS CRM database lets you to create a profile for each customer, you can easily track your customer's payment information, payment history, what their favorite products are to provide the best and most relevant personalized experience for your customers.

In addition, customer data is very useful for advertising because it can provide insights into which customers will be interested in your sales. Using email addresses, phone number and purchase history collected by the software, you can set up specific and targeted offers to encourage customers to keep shopping with you.

Loyalty Programs

83% of consumers say that they are more likely to buy a product from a business with a loyalty program.

Combining with a CRM database, loyalty programs allow retailers to capture a customer's purchase history and market them with relevant offers via email, social media or any other communication channel.

You can also leverage this data to motivate and reward your loyal customers with things like loyalty or referral programmers to keep them coming back. Keep in mind that increasing customer retention rates by 5% increases profits by 25-95%.

Inventory Management

Inventory management is one of the most important functions of POS software. As the name implies, inventory management keeps track of all products so you know when to order/or not order specific products.

The cloud-based point of sale software allows you to manage your inventory in real-time and know how many items you own in a given period of time. Once you receive your order, you have to scan or enter your items and everything will be saved in the software. This makes it easy for you to know how much of the goods you have with the actual quantity you own, which helps to avoid discrepancies due to loss, theft, etc.

Some systems include ordering and supplier management features to simplify reordering. A good point-of-sale inventory system helps keep your business well-stocked.

4. Signs It’s Time To Switch Your POS

Maybe you have been using your POS software for a while, it is good enough but you are still doubting that there is still better software out there for you that will help you solve more problems for your business. Believe it or not, many pos solutions have the power to hold you back from providing efficient service, managing smart teams and making accurate decisions, and more.

So, here are some signs it may be time to switch your POS.

Your POS Software Is Not Helping To Optimize Inventory Management

In fact, POS solutions are configured with inventory management features that help you ensure that you are stocked with exactly what you need. If inventory management is struggling and doesn't sync automatically, it's time to move on.

To ensure the new POS software meets your inventory needs, you should ask POS provider:

• Does your solution have an inventory counting tool so I can see when I need to reorder?
• Does it sync automatically from multiple devices?

Your POS Solution Doesn’t Provide Enough Payment Options

Does your current POS solution offer all the payment options that today's diners want? If you don't offer a full range of payment options, customers will be frustrated when your store isn't up to date with the latest technologies. Integrate credit card payment, online payment and cash payment. Besides, is your payment feature often late causing customers to wait a long time? If yes, it's time to switch new POS software.

To ensure the new POS software meets your payment needs, you should ask POS provider:

• What types of payments does your software accept?
• Does your software have bill splitting feature?
• Can you accept payments even if your Internet connection is interrupted?

No mPOS Option

If POS solution provider don’t offer mPOS option, it’s better to switch to another POS software. Nowadays, a modern POS software is mobile and can help servers give more customize and better services. Besides, by using this software, this type of order taking can lead to better accuracy and immediate communication with the kitchen, as the server can confirm with the diners at this point.

To ensure the new POS software meets your mobile needs, you should ask POS provider:

• Does your software offer table-side ordering using tablets and smartphones?
• What features does your table-side ordering system have?

Your Point Of Sale Software Doesn’t Help Schedule And Manage Staff

A POS system plays an important role in employee management, including scheduling work, tracking employee hours, helping you calculate employee wages, and tracking employee performance.

These questions below will help you ensure whether new POS provider can help you maximize your team:

●      Does your software have scheduling and employee management feature?

●      Is your POS software can help me track employee activity and help manage payroll details by providing staff reporting feature?

Your POS System Lacks Reporting And Analytics Capabilities

If your current POS software does not provide detailed reports and analytics that help you determine your Profit Margin and Cost Of Goods, Sales Reports, Employee Performance, … you should definitely move on.

●      What types of reports are included in the software? Can you provide details on the reporting functions that your solution provides?

●      Whether I have the ability to access to my reports from different types of devices?

Your POS System Isn’t In The Cloud

If your solution is still not cloud-based, you maybe want to move on. Because when a traditional POS system crashes, you run the risk of losing all your data without a backup. However, with cloud-based POS stores data on the internet, so it's always there when you need it no matter what happens to the hardware.

Here are some questions you can ask POS provider:

• Is your software cloud-based?
• Will my data still be available even when I'm offline?
• What types of security features are included in this software?

Your POS Has No CRM Function

Finding customers for your business has never been easy. And once you've found them, there's another challenge waiting for you: how to establish and maintain customer relationships with them. The more information you know about your customers, the stronger your relationship with them will be. With CRM software, it will help you optimize customer relationship management. You can completely build a loyalty program to reward your often loyal customers and boost their excitement every time they visit.

However, if your current POS software doesn't help you do that, you should consider a new POS provider who will help you create a CRM program just in an eye of blink.

Here are some questions help you ensure your customers will come back:

• Does your software provide loyalty program?
• What kind of features in CRM in your solution?

Your Point Of Sale Software Is Not User-Friendly And Simple To Navigate

Does your software have so many cool features that it's not easy for you and your staff to use them? Sometimes, some features are not really needed? If you and your staff are taking too long to learn each feature one by one, it may be time to find a new direction for yourself.

There are many other POS software that are easy to use and still meet your needs.

Here are some questions you can ask POS provider to get an easy-to-use software:

• Can I try the DEMO?
• When was the interface designed? (If the interface was designed for more than 5 or 10 years old, it can be outdated.)

5. The Importance Of Choosing The Right POS System

Choosing a POS system can have a positive or negative impact on your business. That is why you need to take the time to research and identify the important and necessary factors in a POS system for your business. Researching and finding the right POS software requires a lot of research but your return on investment is worth it if you find the right software. Choosing the right and powerful software will help you create a fresh and possibly unforgettable experience for your customers.

Operation Business

When you choose the right POS system for your business, managing your business takes less time and more efficiently, leaving you time to focus on growth, strategy, and innovation.

Financial Health

When you choose a great point of sale software, you not only streamline your business, but also benefit your financial health. Top-notch security and PCI compliance are built right into your device so you don't have to worry about chargebacks and fraud. Besides, some advanced POS system now also integrate rapid deposit service or advance your own sales which can help you a lot.

Customer Engagement

If you choose a POS system with feature like built-in customer engagement, you will have the ability to connect with your customers, expand your customer base, and increase loyalty. Besides, you can easily send targeted and limited promotions to individual customers.

6. What Is The Best POS Software For A Small Business?

Are you looking for the best online POS software for your business? Here are Top 5 Online POS Software that helps you sell and manage your retail store with an affordable price. Let’s take a look:

1. Lightspeed Retail – Best POS Software For Large Inventories

If you are looking for a powerful point of sale software for large inventory then this is a perfect choice for you. This software is known for its excellent e-commerce and inventory management capabilities, making it perfect for fast-growing retailers.

This complete software also enriches businesses with an intuitive cloud-based interface, advanced sales management and integrated reports. Furthermore, Lightspeed would be the ideal choice if you care about special requirements such as customization and the ability to manage bulk items that are being sold individually. Plus, there's so much you can automate with Lightspeed's powerful inventory engine, you don't have to worry about your day-to-day process. Lightspeed also comes with quite advanced loyalty functionality, allowing you to store customer information and specialized discounts.

Pros:

• Advanced retail features
• Detailed inventory management
• Modern POS equipment
• Worldwide payment acceptance
• Integrated eCommerce

Cons:

• Advanced features cost extra

Lightspeed POS software price:

• Basic for $69 per month
• Starter for $99 per month
• Standard for $119 per month
• Advanced for $169 per month
• Pro for $229 per month

2. Revel Systems: Best POS System For Larger Businesses

Revel is one of the best point of sale systems for retails, restaurants, bars and, coffee shops, breweries and quick-service restaurants. This software a hybrid POS, using a combination of the cloud and your local network to store information. That means you don’t need to worry if you lose a connection. You can still process transactions. If you’re a small business owner with multiple locations, Revel has a centralized management system that standardizes everything across each site.

Revel is high-rated for providing customer management (CRM) tools that can turn passive and infrequent customers into loyal customers. This software gives you the ability to set up email and marketing campaigns for your target customers and also reward your customers for their loyalty. Revel also makes it easy to manage your employees, schedule work, and compile accurate reports that help you evaluate employee performance from the dashboard.

Revel can be customized to fit almost any retail POS need, from in-kiosk shopping to delivery management to integrated eCommerce.

With all these in mind, retailers with multiple locations will find everything they need in this solution.

Pros:

• Powerful enough for multi-site retailers
• Custom packages built for your business
• Extensive order and reporting functions
• Tools built for food and beverage businesses
• Customizable customer loyalty and management services

Cons:

• Long-term processing obligation

POS software price:

• Started for $99/month/terminal

3. QuickBooks Point Of Sales

QuickBooks Point of Sale is an all-in-one solution with the software, hardware and payment service you need to sell online and in-store. This software is a point of sales system suitable for various small retail businesses such as shoes, clothing, sporting goods stores, gift shops, etc. Just like the software on this list, it also offers inventory and customer management features. Cloud-based and on-premise deployments are available.

Point of Sale QuickBooks offers standard point of sale features like payment processing and returns processing along with inventory management. This allows users to track inventory and items that are about to sell out, and place orders for items that need to be restocked. This solution also saves customer data making it easy to track purchase history, buying behavior and customer insights.

In summary, the QuickBooks POS system is a good standalone product. It has all the basics you need to handle transactions.. Now you can combine Intuit's point of sale software, accounting services, and POS hardware to easily run your small business effectively.

Pros:

• Fully customizable to the customers needs
• Easy integration with Intuit . accounting software
• One-time purchase with no monthly fees
• Software compatible with Windows desktops and tablets

Cons:

• Expensive prices for full-featured packages. But you only have to pay once.
• Simple payment processing and inventory management
• No iPad compatibility

QuickBooks POS software price: 

• Basic - $1,200
• Pro - $1,700
• Multi-Store - $1,900

4. Shopify – Best For Retail Store

Shopify is a web-based e-commerce platform that provides an mPOS system. This software is an easy to setup and highly customization software to best suit small businesses and scale up as your business grows. MPOS allows users to manage their business and complete transactions in-store as well as at markets, pop-ups and trade shows.

The company's robust e-commerce integration also translates into an impressive point-of-sale solution for brick-and-mortar stores, allowing them to sell online and reach their customers through social channels. social media like Facebook, Twitter or Pinterest.

Your inventory will be updated and managed in real time across multiple locations to sell over the Internet and in person. You can also manage transfers between locations and use Shopify for inventory forecasting. Shopify makes it easy for you to create loyalty and build customer relationships using loyalty programs. Shopify POS also allows you to accept any types of payments anywhere in the store.

This retail POS system has many special features such as the ability to accept split payments, the ability to grant refund and store customer credits, barcode support, gift cards, CRM, detailed reports (including reports on best-selling products, employee performance reports, etc) and inventory management can be synchronized no matter it’s online or not.

Pros:

• Free 14-day trial
• Affordable monthly pricing
• Robust ecommerce tools
• Clean interface

Cons:

• No subscription-free plan
• Offline mode cannot process card payments
• Limited reporting on the basic plan              
• Additional fees when using third-party payment providers

Shopify POS software price:

• Basic Shopify — $29 per month
• Shopify — $79 per month
• Advanced Shopify — $299 per month

5. Square

One of our top picks for the best POS system is Square. It's completely free to start, easy to use, and has useful and essential features. Thanks to these features, Square is highly rated and becomes the ideal choice for new business owners who are looking for a software that is powerful yet easy to use.

This software is designed best suit for mobile businesses like food trucks and boutique retail shops but it's still fit for many other types of small businesses.

Easily pay from anywhere at any store with Square's credit card readers and point-of-sale mobile app, which works with most Android and Apple devices. In addition, it also allows you to track and manage inventory, forecast stocks, collect and analyze customer data, and run reports on sales and inventory. Square gives you detailed reporting and analytics, and lets you send invoices, track employee shifts and manage multiple locations. You can also run email marketing, loyalty plans, and gift card programs through a loyalty program.

Square's point of sale software also packs powerful accounting features that help growing businesses track invoices, accept payments, and manage sales all from one dashboard.

Pros:

• Robust free option for online sales
• Easily track inventory
• Integrated payment system
• Software and hardware that's easy to set up and use

Cons:

• Expensive processing fees for businesses with high volumes
• Free option lacks advanced features
• Extra fee for a loyalty program

Square POS software price:

• Free
• Plus: For $60 per month per location
• Premium: Built for enterprises

7. How To Buy Your POS Software

Ask Your Network

The best place to start is to first ask someone you know and trust. You can ask an experienced employee who knows a lot of details about your business and knows what your business needs? Or you can ask someone with a lot of experience with POS software, they can point you in the right direction so you can get started.

Check Review Sites

You should definitely check out a few review sites. Checking user’s reviews, the problems they are facing are also likely to be future problems you will encounter when using a certain vendor's point of sale software. Check to see if the vendor is addressing the issues that users respond to or they are abdicating responsibility and leaving the user alone. Surely you wouldn't want to have that problem, would you?

If you are looking for a few review sites, here are some representative ones you can glance at:

• G2
• Capterra
• Merchant Maverick
• Software Advice

Get A Demo

Let’s try the DEMO to see if it meets your business needs.

See it in the real world

Let's go shopping! But not to buy, but to go to some retail store to see how the POS system works. You can also chat with business owners to get a better understanding of the best features and characteristics of a POS system.

In Conclusion

Whether you're entering the market for your first POS system or looking to upgrade to a new system, it can be difficult to decide which will be right for your business. It all depends on the needs of your business as well as your budget. The list of software in this article are all affordable, cloud-based solutions that are easy to set up and use. If you are still not sure, you can contact us to get the best advice on the journey to finding POS software solutions.

Thanks for reading!

Rose Helen

Shop Owner

Rose Helen is a highly accomplished Ecommerce Project Consultant with a strong background in managing and guiding successful e-commerce projects. With her exceptional expertise and strategic mindset, she helps businesses achieve their goals in the digital marketplace.
With years of experience, Rose Helen possesses an in-depth understanding of e-commerce platforms, technologies, and best practices. She works closely with clients to analyze their needs, develop tailored strategies, and execute effective project plans that drive growth and success.
As an Ecommerce Project Consultant, Rose Helen excels at overseeing project lifecycles, from inception to completion. She ensures projects are delivered on time, within budget, and with the highest level of quality. Her exceptional project management skills enable her to effectively communicate with stakeholders, manage resources, and mitigate risks throughout the project journey.
Rose Helen is a strategic thinker who leverages her extensive knowledge to identify opportunities for improvement and innovation. She provides valuable insights and recommendations to optimize e-commerce processes, enhance user experiences, and increase online sales.
With her strong communication and collaboration skills, Rose Helen builds strong relationships with clients and key stakeholders. She fosters a collaborative environment, working closely with cross-functional teams to ensure seamless project execution and alignment with business objectives.
Beyond her technical expertise, Rose Helen is dedicated to delivering exceptional client service. She goes above and beyond to understand her clients' unique requirements and provide them with personalized solutions that drive tangible results. Her commitment to client success is evident in her approach and the long-term relationships she builds.
Rose Helen's passion for e-commerce, coupled with her extensive experience and project management skills, makes her a valuable asset for organizations looking to thrive in the digital landscape. With her guidance, businesses can navigate the complexities of e-commerce projects and achieve their objectives with confidence and success.