POS Software

Manual checkout processes are no longer valid in the dynamic business environment. Flexibility and automation have become a crucial differentiating factor. A POS software eases ordering, billing, product positioning, customer service, sales projections, marketing campaigns, and demand forecasts. Its implementation can help businesses ease the purchasing process and forecast seasonal demands accurately with analysis of historical customer purchase data. 

Businesses get hold of commerce by using point of sale systems that promote longevity in the business. Retail, hospitality, consumer services, multi-service businesses (like health, nutrition, entertainment, theatres, and hotels) make use of point of sale apps regularly.

However, choosing the right POS software for your business can be daunting. Therefore, this buyer's guide to POS (Point of Sale) software intends to provide in-depth information to the buyers to choose the appropriate point of sale system for their business.

POS is an abbreviation for Point of Sale or Point of Service. It means the point of sale transaction or deal that happens between a merchant and a customer when purchasing the product or service. The POS solution is generally used to carry out the transaction.

In simple terms, Point of Sale serves as a system that allows the sale of physical goods in a retail store. The POS system eases the checkout process, streamlines billing, and improves customer experience. 

For example – If you are purchasing something in a retail shop, you are undergoing point-of-sale.

POS transaction is the state where customers offer payment for the purchase of goods or services. It occurs when the deal is finalized. The user can use cash, debit cards, mobile payments, or credit cards for the payment. 

POS systems are increasingly becoming popular by allowing customers to speed up the checkout process and pay bills easily.

Any store that has a point of sale and point of purchase can use POS software. Ecommerce stores and many brick-and-mortar stores widely deploy the POS system. The POS system helps in controlling the transactions. From customers, products, sales, inventory, loyalty programs, and labor; this point of sale software solutions automatically updates the essential database. 

The retail companies, grocery shops, and hospitality businesses like restaurants and hotels can benefit highly from a POS system. The retailers can accept and process the payments with the help of retail POS software. The user purchases the POS system with hardware and accessories such as a monitor screen, cash register, barcode scanner, receipt printer, and card readers.

The point of sale system software is becoming the nerve center of every business. It provides an all-in-one solution to a large number of everyday issues. The point of sale solutions collects and records data accurately, which helps users know about the functioning of the business. Point of sale software is essential due to many reasons:

• Manage the Inventory- The point of sale software maintains the business' inventory. It collects and tracks the information that helps the users know what sells a lot and what time it should be restocked. From the reports, the users can decide when they should adjust the pricing.
• Automate the Accounting- POS solutions make the record-keeping and accounting process easy and effortless. Directly from the system, the user can collect all the data. If the sound POS system is connected to the computerized accounting system, the user can clear credit cards, record transactions, manage sales, and quickly collect taxes.
• Collect Customer Data- The user can gather the information from the current customers based on the information input capacities. The POS system allows improving customers' buying experience by keeping the information related to customers' phone numbers and email addresses. The customers will find it easy to shop more if their information is stored prior to the system. This results in better CRM.
• Save Time - The point of sale software speeds up the checkout process and inventory management. It offers faster payroll processing. The user can make use of the search tool to look for any type of transaction.

The businesses should invest in POS software due to the following reasons:

• Improved customer experience
• Simplify sales from multiple locations 
• Better productivity through integrations
• Gain access to customer purchase histories
• Control of inventory
• Manages Taxes 

• Speedups purchase transactions
• Provides a seamless shopping experience
• Optimizes checkout process 
• Saves information about all customer’s purchase history
• Boosts productivity by the faster checkout process
• Provides essential business reports and sales data
• Better customer service and experience
• Streamlines cross-selling, interaction with shoppers, and up-selling 
• Enables easy stock management

The various types of POS software are as follows:

Mobile Point of Sale

In the small business sphere, the mPOS system has become more and more popular. Small businesses, like event vendors, contract professionals, and freelancers, find Smartphone POS services an apt option for processing payments. As per the business requirement, the mPOS can be connected to external hardware like a card reader, cash drawer, printer, and barcode scanner. The business owners only have to download an app and create an account for a mobile POS system. 

The user can experience better processing capability, enhanced communication, sophisticated consumer analytics, real-time inventory management, and wireless connectivity with mPOS smart devices. It is cheaper and more flexible than the ePOS (electronic point of sale) system. In retail stores, mobile POS software helps attain consumer data, empower employees, and generate more dynamic sales opportunities. It is suitable for mobile vendors, coffee shops, gift shops, small retail stores, pizzerias, ice cream parlors, art galleries, small theatres, salons, quick-service restaurants, juice bars, and professional services.

The Terminal Point of Sale 

The terminal point of sale (POS) system is used for processing payments at the billing counter. POS terminal usually detects all modes of payments. The modern POS terminals discover NFC (near field communication) / contactless cards and wallets such as Apple Pay, Google Wallet, Samsung Pay, and many more. The Terminal point of sale system is apt for busy retail, antique stores, grocery stores, restaurants.

Self-Service Kiosk POS

A Self-service POS system enables the customers to input the necessary payment data and check out their purchases with self-service POS systems. Even if the billing workers are not physically present to manage the sales process, the businesses can deploy self-service kiosk POS to manage the billing counter. It is apt for - ticket sales, large retail stores, parking, etc. 

The POS system helps in running the businesses smoothly by saving time and reducing paperwork. It works in the following manner:

• Installation and set up – The POS system involves physical hardware components and software system data. The POS provider sets up the account. The user can add inventory, employees, and customers. The POS Company teaches users how to make use of this POS system.
• Collects data- The POS systems fetch customers' data, including the phone number, name, and customer number. In the industry-specific software, there are features of inventory management.
• Payment Processing: The customer uses a credit/debit card or an authorized e-wallet to make the payment at the billing counter. Before making the authorized transaction, the user requires the PIN, signature, and fingerprint scan to complete the POS purchase. From the PIN or other security features, the authentication information travels through the banking networks to reach the issuing bank. The bank holds power to approve or deny the deal based on the transaction type and amount of funds present in the cardholder's account.
• Promotion - The Point of Sale solutions allow users to design simple marketing strategies to gain more business. It offers email marketing and direct mail reports.
• Reporting and Back Office – The users can review the sales reports and manage inventory, employees, and customers. The point of sale software provides reports that include the details of the cost of goods sold, low inventory along with existing inventory, customer purchase history, item-specific sales reports, and gross sales.

For example,- In the restaurants, the POS system enables tableside payment. You may use credit cards or cell phones to pay with Apple Pay or Android Pay for paying the amount. The restaurant's machine or system to take your payment is termed their point of sale terminal. It takes the payment of the customers by adding up the totals along with the sales tax.

On-Premise POS Solutions: Businesses that want to house their POS software on their own in-house servers and IT infrastructure can deploy the on-premise POS software. Businesses have to purchase the license to use the software. 

Web-based or Online POS Solutions: Third-party online POS software providers offer web-based online POS software that can be accessed from anywhere with internet accessibility. 

Cloud-based POS Software: The cloud-based POS solutions are hosted through a third-party cloud service provider, and business data is stored in cloud servers for high-speed transactions and massive storage capabilities. 

Open source POS Software: Open source POS solutions come with free source code that can be modified according to business needs. 

Based on the Requirement and Nature of Business

There are many types of POS systems, and you can pick up the apt POS solution depending on the requirement and nature of your business.

Retail POS Software- This type of system includes label printing for items without UPC codes, employee commissions, scales of weighted items, ecommerce integrations to set up an online store, and product matrix along with item variants to support the different types of product sizes, colors, etc.

Restaurant POS software- This software should cover the receipt printer for attaining the physical check to the customer, ability to assign order types such as dine-in or takeout, online ordering, remote ticket printing, and custom table map.

Salon POS software- This type of solution requires online booking, calendar management, and memberships.

If you are in a dilemma to choose between an on-premise POS or a cloud-based POS system for your business, the below-mentioned points will help you draw the conclusion.

Data security:

On-Premise - The user can access data from only one location as it is a closed network. Your business will be responsible for the protection of your on-premise server.

Cloud-Based - The user can access the cloud-based system from anywhere in the world as it stores data online. The data in this system is more secure as the technical experts maintain the servers.

Integration and Customization:

On-Premise - Based on the business process, the user can customize the on-premise module. The enterprises with a considerable budget can find it an appropriate option.

Cloud-Based - Though the customization in a cloud-based POS system is limited, it is easy and effective to integrate new modules to a cloud-based system. This system is less time consuming, and users don’t have to be fretful about the networks and servers.

Cost Efficiency:

On-Premise - The user does not have to depend on any ongoing service fees for hosting. The user has the freedom and control over the data with this system.

Cloud-Based - Being a subscription-based service, this system has a little upfront cost. The vendors automatically handle maintenance and updates. On the basis of the business size, the price can vary.

The user should follow the below-mentioned practices to make the POS system efficient:

• The POS software should meet the needs of the digital era to meet the demands of reliability, speed, and security.
• The companies prefer cloud-based platforms so that the users can experience unified commerce, the agility of deployment, along scalability. 
• The POS solution should be able to enhance customer engagement with the help of technology. The retailers can bring incentives, cross-sell, interact with shoppers, and up-sell by swiping a loyalty card.
• The retailers should make an educated purchase decision with the help of e-commerce and omnichannel experience.
• The store associate uses a mobile point of sale software by attaching shopping carts with tablet computers and Apple iTouch.
• The retailers should provide a consistent pricing pattern or pricing transparency across all channels, whether physical or virtual. 
• The merchants should believe in creating a powerful POS foundation that also supports modern POS systems.
• Retailers should be aware of the changes and updates in the mandatory regulations such as Payment Card Industry Data Security Standard (PCI DSS). They should use PCI compliant devices, monitor physical devices, and should not connect their POS system to external networks. 

The POS software should meet the digital era's needs to meet the demands of reliability, speed, and security. The best POS software can simplify business operations and allow users to make informed business decisions. The user should consider the following crucial points to pick the best point of sale system for their business:

User-friendly – The point of sale software should be easy to use so that you can manage it comfortably without consulting the manual regularly or depending on the tech support all the time.

Hardware – The type and size of the business decide on the kind of hardware. The small retailers need a tablet, card reader, and cash box, while the more extensive operation prefers terminals, receipt printers, and barcode scanners.

Software – The user should study the option's capabilities and costs to ensure that the point of sale app is the right fit for their business needs.

Integration – The POS solution should integrate appropriately with the tools, applications, and software that the user is already using. The POS system that integrates seamlessly with third-party vendors will prove to be the ideal choice for the users.

Automation – The POS system software should be able to automate processes and reduce manual inputs. From the logistics, it should be able to use the data. The point of sale system should hold the capability to update inventory and order information by the supply chain.

PCI Compliance – In small business, it becomes crucial to have the provision of payment security. The point of sale software should be in compliance with the data security standards, which are recognized by the Payment Card Industry (PCI). The users’ payment data should be safe-guarded with end-to-end encryption and data tokenization.

Support- POS solutions should provide 24/7 support through live chat, phone, and email.

Cost- Before finalizing the POS system, the user should consider its cost that includes the hardware and software price. Make sure that the terminals should align with the needs of the users. The user should also consider operating costs.

Features- The user should make sure that the POS system should have the core functionalities of inventory tracking, customer management, invoicing and billing, refunds and returns, employee scheduling, and data analytics.

When the user plans to purchase the point of sale software for their business, then he/she should ask a few questions to gain information about prospective POS provider, which in turn helps him to know about the POS Company:

• Is the company financially workable?
• Whether POS is the primary business of that company?
• How much experience does the company hold regarding your business industry type?
• Whether the company serves as a provider or reseller?
• How are the reviews of that particular company?
• What are their service parameters?

While choosing a POS software, the users might make a few common mistakes. Let’s discuss how to overcome them:

Pay attention to price only.

Mistake- The user can buy cheap and low-quality POS system software that lacks essential functionalities.

Remedy - To run a competitive business, they should spend more to buy a sophisticated POS system that offers essential and advanced features.

Ignoring the hidden costs

Mistake – Busy business owners may ignore the costs of training staff, maintenance of the system, and payment processing. It can result in more expenses than initially expected.

Remedy- Before investing, it is advisable to consider the factors related to migration costs, hardware, and software, payment processing, maintenance, setup fees, etc. 

Missing the support system

Mistake- Without the support system, the user can face some technical issues that can waste precious time and results in disappointments.

Remedy- The knowledgeable and reliable support system provides technical aid to the users at the time of need. Users should look for vendors that provide efficient technical support.

Restricting the customer payment option

Mistake – The POS system offering limited payment options may turn away some customers from the products and services.

Remedy- More payment options should be given to the customers. The chip payment option will remove the fraudulent charges. They should look for a point of sale software that offers multiple payment options. 

The prominent features of the Point of Sale solutions are:

Inventory and stock Management- All the time, the point of sale system software offers full visibility and accountability at the store level. It presents the visibility of inventory along with SKU’s (Stock-keeping unit) transaction history.

Billing and Order Processing- By scanning items and capturing different payment modes, the point of sale solutions perform billing and order processing functionality. The POS generates order invoices, emails to the customers, adds customer details along with discount details. 

Sales Monitoring and Reporting - The point of sale software produces a strong sales report. The merchants can receive hourly, daily, weekly, monthly, and yearly reports. The advanced POS solutions offer sales trends like seasonal demand in products and information related to stock management.

Cross Channel Returns Management- The POS management system accepts the cross-channel returns and assists in refunds and replacements from any type of store location. The POS system captures the details of the reason for the return, the salesperson's name, and remarks.

Employee Management- The point of sale software administers the employee hours, staffing levels, and sales performance, which ultimately helps track employee productivity. With each transaction, the POS tracks the employee's activity, which eventually assists in dividing the right and weak performers. 

Customer Relationship Management – By storing customer data and purchase history, the point of sale software helps in retaining the customers. In business, customer data is helpful for advertising as it offers insights regarding which customer would be paying attention to the sale.

Onboarding and Support- The point of sale systems software provides interactive webinars, 24/7 support, one on one sessions, email and chat support, customer forum, and account history.

Mobility – The POS system software can be customized for mobility. Your shopper may be on any floor, section, or counter. Mobile POS allows you to take payment and close transactions from anywhere. 

Multiple Payment Methods: POS allows payments with multiple payment modes such as credit card, debit card, loyalty points, gift cards, discount cards, etc. It also allows shoppers to pay with multiple currencies. 

You can keep your POS system secure by following the best practices as below:

• Make use of PCI (Payment Card Industry) compliant devices
• Never connect the POS system to external networks
• Set firewalls and anti-virus software
• Limit access to the internet
• Prohibit remote access
• Create strong passwords and often change it
• Lockdown all the devices at the end of the workday
• Appoint security experts

The global point of sale (POS) software market is forecast to reach a size of 42.5 billion U.S. dollars by 2027 - a more than threefold increase from 2018. The Pandemic led to restrictions on cash payments, and the focus of authorities on promoting cashless transactions have significantly increased the use of POS software solutions. 

The most recent trends in the POS system are as follows:

• Cloud-Based technology - The cloud-based applications that integrate with the POS system is reducing the cost of the point of sale ownership.
• Artificial Intelligence - Several companies are automating tasks and learning a customer’s journey through data and digital touchpoints by making use of AI in business applications.
• Mobile payments - In business, mobile payment options have made the transactions more accessible and safer and can even improve customer service.
• Data collection and analytics - The POS software collects customer details along with data and tax information. It checks employee productivity along with sales.
• Rise of Bluetooth - On Bluetooth, the payment is fast and secure. The users don’t have to rely on WiFi. Even when the internet is slow or non-existent, they can work comfortably.
• On-demand purchasing - The POS system allows on-demand purchases for the customers. They can purchase food or goods in advance with the help of store-specific payment apps.

The POS software cost depends on the business size, amount of features it offers, the quality of elements, the type of industry the POS system is meant for, and the potential for customization and scalability. The POS is made up of software along with hardware. The POS hardware costs include tablets, monitors, card readers, receipt printers, barcode scanners, and self-service kiosks. You should also consider the POS hardware costs along with the software. 

The cost of the point of sale systems software can start as low as $6 monthly (for example, Odoo POS) and can reach as high as $1300 per month approximately (for instance, HDPOS Smart)

The small businesses hold the basic features of the POS software, so their prices are more affordable rather than the large organizations that believe in investing in the plans that offer more advanced features. If you are looking for Free and open source POS software solutions, then you can consider Chromis POS, Floreant POS, and Unicenta. 

GoodFirms’ platform performs thorough research based on the latest market trends. Here you will get the curated list of best POS software accompanied by the authenticated reviews. By exploring this huge platform, you can find high-quality and accessible POS software solutions available in the market. Prioritize your business needs and then accordingly decide the best POS software system for your business. 

You can choose the best POS software for your business needs by going through the GoodFirms’ list of the top POS systems. The implementation of the high-performance POS system in your business will provide you better customer experience. Feel free to talk to the experts at GoodFirms or explore the third party vendors to gain more information on the point of sale software.