Types of POS: Which One Should You Go For?

A POS system is an important investment for any business. So, it’s important to choose the right one.

Consumer-oriented companies continue to adopt commerce technologies as more and more transactions migrate to the internet. According to the RCP survey, in 2021, 85% of retailers considered digital commerce a top priority.

Even though accommodating online transactions is essential for business success, one thing shouldn’t be overlooked. According to Wunderman Thompson’s “Experiences, Customers Want” study, 42% want a seamless experience via all channels, anywhere, anytime.

E-Commerce-Business-Needs-POS

Why Every E-Commerce Business Needs Omnichannel Strategy Today?

The internet has really changed the game for businesses, and the competition is fiercer than ever. Having a website or an online store just doesn’t cut it anymore. To keep up and grow, you’ve got to be everywhere your customers are. If you’re not quite sure what an omnichannel strategy is, you might want to hold off on that for now.

A POS system is something every business needs if you want to stay ahead of the competition. It doesn’t just figure out how much to charge. It also lets you take payments and keeps your sales and inventory numbers in check.

While custom POS systems can bring numerous advantages to an enterprise, you must implement more than any POS solution. Purchasing or developing a custom POS software that is suitable for your business could prove useful for achieving your exact goals and could be a great return on investment.

This article will break down what POS systems are, what they can do, and the different types you can choose from. By the end, you’ll know whether a ready-made POS or custom POS Software development is the right fit for you.

So, What is a POS System?

A point-of-sale system is basically a tool that connects your cash register to an electronic network. It helps businesses keep track of inventory, handle transactions, and accept payments. It can be something as simple as a register sitting on a counter or mounted on a wall, storing all the data and letting your staff record sales as they happen.

However, A POS system can either be a standalone computer or one that connects to other systems online. While they’re usually set up at the front of a store, they can also be mobile for use in a warehouse or out in the field. Simply put, a POS system has two parts: hardware and software. And if you need help setting it all up, My Web Programmer’s got you covered.

POS Hardware

A POS system requires hardware. The POS hardware usually consists of a computer, a scanner, a printer, and a display screen. Some POS systems also have a keypad for entering data or performing cashier transactions, while many now use a capacitive touch screen. The hardware is the physical part of a POS system that helps perform the basic tasks. A computer is the heart of any POS system. It stores information, sends data to other systems, and performs tasks.

For example, a POS system with a scanner can be used to identify inventory items and add them to a transaction. It helps to increase efficiency and save money. In addition, a POS system can print receipts and labels using an in-built printer since receipts are very important for customers.

POS Software

The second part of a POS system is the software. The developers write the software to perform all the major functions of a POS system. In an essential sense, POS software is responsible for receiving data from the hardware and displaying it on the screen. But POS software is also responsible for collecting, calculating, and storing the data. It can be used to record sales, track inventory, and manage customers’ account information.

POS software is available to organizations in various forms today, depending on various parameters, including the devices your company uses, whether you sell your products online or have physical stores, and many more. There are many POS software solutions available in the market, but here are some of the most common ones:

Payment Processing

An important function of a POS system is to deal with and streamline transactions made by visitors to the store. In consumer-focused businesses, short transaction execution times are crucial, so ensure that your POS system supports robust payment processing by default. In an ideal scenario, POS should be versatile and accept different currencies, credit cards, and online payments.

Sales Management

A POS system functions as the final touch point for customers so its capability to collect important customer information becomes vital. It should track what they’ve bought, which brands they prefer, and what they’ve bought before. It can also scan barcodes and update your stock automatically, which is super helpful when you have a lot of products. A crucial component of most Point of Sale systems operates through Customer Relationship Management (CRM). A CRM system maintains both customer records and purchase histories for team members to initiate effective follow-up campaigns. A POS system assists you in managing your financial records while enabling you to create promotions and deals.

Inventory Management

An inventory management POS system equipped with an inventory control feature allows teams to track how much of a commodity has been sold. This information can then be used to order more stock when necessary. Additionally, an inventory management POS system can also be set up to automatically reorder products when they fall below a certain threshold. This way, businesses will never run out of stock unexpectedly.
Inventory management POS system with an inventory control feature allows teams to track how much of a commodity has been sold. This information can then be used to order more stock when necessary. Additionally, an inventory management POS system can be set up to reorder products when they fall below a certain threshold automatically. This way, businesses will always have enough stock

Order Management

A POS system keeps everything running smoothly by tracking orders and customers. Perfect for businesses that take phone or online orders. You can create orders, link them to customers, and keep tabs on everything, all in one place. It also helps by giving you reports on what customers are buying, so you can plan your marketing and sales better.

Employee Management

Businesses can monitor employee performance through sales and transaction insights within their POS system. A POS system simplifies both employee schedule management and time off tracking systems.

Customer Relationship Management

Integrating CRM with POS system reduces the complexity of customer tracking processes. You can see their phone numbers, what they bought before, and what they usually like. It also helps you send them special deals or messages that they’ll actually care about.

Analytics and Reporting

POS systems collect loads of data that can help boost your business. They track everything from sales and inventory to employee performance and customer habits. With all this info, you can get reports that guide smarter decisions, whether it’s setting prices or figuring out what products to stock up on.

Security

In a POS system it is essential to maintain complete security of personal customer information. They should have things like password protection and encryption to keep out anyone who shouldn’t be there. Good POS systems also let you see who’s been in the system and when, just in case you need to check.

If you run a business, you pretty much need a POS system. Doesn’t matter if you’re small or big. It helps you know what you sold, what’s left in stock, and who’s buying your stuff. You can also use it to pull reports and just see how things are going. Plus, a good POS keeps your info safe, so you don’t lose anything important.

Let’s get into the different types of POS systems out there.

Types of POS Solutions

Every business has different needs, so there’s no single POS system that works for everyone. Below, we’ve shared some of the most popular options to help you find the best one for your business.

1. Cash Register/POS Terminal

A cash register is the most basic type of POS system. It is typically used by small businesses that only need some embellishments of a more advanced system. A cash register can track sales and inventory, but it doesn’t have all the features of a more sophisticated system.

2. Mobile POS

A mobile POS (or mPOS) is just a smaller, portable version of a regular POS system. It lets you take payments anywhere — in your shop, at a market, even right at a customer’s door. All you really need is a phone or tablet and a little card reader.

3. Cloud-Based POS

A cloud-based POS is one you can use online. Instead of being stuck on one computer, you can log in from any device that’s got the internet. It’s super handy if you want to check your sales from home or on the go. Plus, cloud POS systems usually cost less than the old-school ones you have to install on-site.

4. Integrated POS

An integrated POS system connects with other tools your business uses. For example, it might link up with your accounting software. This makes managing your finances and day-to-day operations a lot easier.

5. Open-source POS

Since we just talked about integrated POS systems, how can we leave behind open-source POS systems? Open-source POS systems can be integrated with almost any API or software. It gives businesses much power and flexibility when choosing the right POS system for their needs. Open-source POS systems are also ideal for companies aiming to reduce the length of their software development cycle. As a result of its open-source nature, corporate POS software can quickly be expanded with new functional modules, updated, and identified and fixed for bugs.

6. Self-service Kiosks

When it comes to creating ease for customers, self-service kiosks are the best. Nowadays, almost all types of businesses use these to one extent or another. What these systems do is that they reduce the need for employees to handle transactions. These systems lead to cost savings in employee expenses for businesses. In addition, these systems can also help businesses improve their customer service by reducing wait times.

7. Online Ordering POS

Online ordering POS systems help businesses take orders and payments online. They also help keep track of inventory and customers.

8. Omnichannel POS

An omnichannel POS system works across various platforms, including in-store, online, and mobile apps. This system delivers continuous convenient shopping experiences for customers because it provides uniformity throughout all shopping channels.

9. Industry Specific POS

Some businesses need more than just a regular POS. That’s where special systems come in. They’re made for specific types of businesses and have what you need. Think about what you need and what fits your budget. Once you’ve got that figured out, picking the right one will be easy.

Choosing the Right POS Solution

Now you have the necessary understanding of options so now it is time to select a POS system that matches your business requirements. Focus on important factors because they will help you select the appropriate system.

1. Business Size and Type

First, think about how big your business is and what you do. If it’s a small business, you probably just need something basic. If it’s a big company, you’ll need a stronger system that can keep up. Also, what you do matters. A shop needs different things than a restaurant, so pick a system that fits your kind of business.

2. Budget

Next, think about how much you can spend. POS systems can be cheap or really expensive. It’s better to know your budget before you start looking. Also, remember you might have to pay for setup and training too.

3. Hardware Compatibility

You also need to check if the POS system works with the stuff you already have. If you use a Windows computer, make sure it matches. Same if you use a Mac, it needs to work with that too.

4. Software Compatibility

Besides hardware, check if it works with the software you use. For example, if you already use QuickBooks, make sure the POS can connect with it.

5. Customer Support

Last, make sure the company has good support. If something goes wrong, you’ll want someone you can call who actually helps you.

How To Get The Most Out Of Your POS System

Got your POS system up and running? Here’s how to make sure you’re using it to its full potential:

1. Get Your Team on the Same Page

Don’t skip this part. Take some time to show your team how it works. Walk them through the basics, making sales, doing returns, and anything else they’ll need. When everyone’s on the same page, it’ll make your life way easier.

2. Use the Reports

Your POS system can give you some useful reports. It shows what’s selling fast, what’s running low, and what your customers are buying the most. This info helps you make smarter choices like restocking popular items or offering discounts on slower-moving ones.

3. Connect with Other Tools

If you’re using things like a rewards program or accounting software, try connecting them to your POS system. It’ll save you time and keep everything organized. And if you need help setting that up, My Web Programmer is here to make it easy!

4. Look at the Data

Your POS system tracks a lot of useful information. Don’t just ignore it! It can show you when stock is low, what products are selling fast, and when your business is busiest. Use that data to stay on top of things and make better decisions.

Final Thoughts

A POS system is a big deal for any business, so choosing the right one matters. The following piece offers all necessary information for choosing the ideal point-of-sale system for your business. Keep these tips in mind, and you’ll find the perfect match. Need custom POS software development? My Web Programmer’s got you covered!