Choosing the right technology for your retail business can significantly impact your overall success. From robots that mop the floor to e-commerce chatbots, automation can help business owners with various aspects of their operations — but it doesn’t have to be as complicated as this! Stores of all sizes are embracing technology and using retail POS systems instead of traditional cash registers.
A retail POS system could save you time and money in your payment processing and help keep your small business running smoothly.
But what exactly is a retail POS system, and how could it benefit your store? We’re here to answer those questions and more with this comprehensive guide to retail POS systems.
A retail point-of-sale system (usually abbreviated as “retail POS system” or just “POS”) is an all-in-one payment processor found in retail stores. It’s usually a touchscreen device with built-in software that allows you to process cash, credit card, and contactless payments.
But a POS terminal isn’t just a cash register. It can also track sales to produce real-time sales reports, and many come with customer relationship management (CRM) functionality, allowing you to set up a customer loyalty program easily.
The best retail POS systems also work with integrations, allowing you to use employee management tools and inventory management add-ons as part of your POS solution. Some retail POS systems can also link with external software to keep all your transactions and sales data in one place. For example, you can synchronize live sales data with accounting software like QuickBooks to ensure your invoicing is always up to date.
A complete POS system consists of POS software, which acts as the payment processor, and POS hardware, which usually includes a touchscreen device, barcode scanner, and credit card reader. Other hardware options include a cash drawer and a receipt printer — but smaller retailers or cashless brands might not need these.
The main benefit of retail POS systems is that they make it quick and easy to accept various payment types. POS software can handle everything from Apple Pay and other contactless payments to gift cards and loyalty points.
Retail POS systems can also simplify various other processes in your retail business — it’s not just about faster credit card processing. The right POS software can put your inventory management, sales reporting, CRM, and shift management tools all in one place. You could save time and money using an all-in-one solution instead of doing each task manually.
POS systems are also customizable to your business needs. For example, if you run an online store, you can choose a POS system to manage online ordering and checkouts.
In-person stores might choose to use self-service kiosk technology with their retail POS system so they can serve more customers without the need for additional staff. Self-service kiosk apps like KioskBuddy can elevate the in-store experience and could improve your customer retention rate.
There are several retail POS software providers, each with different features. Choosing the right one for your business can be challenging, so we’ve compiled a summary of the top-performing retail POS systems with an overview of features and pricing structures. Let’s take a look.
One of the most popular retail POS systems is Square, which is available on Apple and Android tablets (or you can buy additional POS hardware).
Square for Retail has a basic plan with no monthly fees or startup costs, making it an excellent choice for smaller businesses working on a tight budget. You just pay payment processing fees of 2.6% plus 10 cents (for in-person transactions) or 2.9% plus 30 cents (for online purchases).
The Plus plan costs $60 per month, plus transaction fees of 2.5% plus 10 cents (in-person) or 2.9% plus 30 cents (online). This plan includes additional features like barcode label printing and more advanced inventory management tools.
Square has excellent sales tracking functionality and works seamlessly with add-ons like KioskBuddy and QuickBooks. It also works offline, meaning your store will still be functional if your Wi-Fi is down.
Clover’s retail POS system is an excellent option for business owners who need more functionality. It has more features included than Square but has a higher price point to match.
Pricing for Clover starts at $799 plus $14.95 a month, with transaction fees of 2.6% plus 10 cents for transactions made with the card present or 3.5% plus 10 cents for keyed-in transactions. More advanced plans start at $1,799 plus $49.95 a month.
Prices for Clover are higher than Square, but the additional features mean this could be the right option for larger businesses with more advanced needs. In addition to credit card processing and online ordering capabilities, Clover’s retail POS has email marketing and customer loyalty programs as standard. Other features include employee management tools, such as payroll and hiring integrations.
Lightspeed Retail POS system is a cloud-based system with advanced analytics tools to make it easy for business managers to keep track of their sales and stock. Lightspeed also has a mobile POS solution for sellers who want to take the checkout directly to customers. This is a fantastic option for busy stores, as you can reduce long lines at your till.
Lightspeed has various pricing plans available to suit any business size. The Lean plan is the most affordable option at $69 per month, while the Standard and Advanced plans start at $119 and $199 per month, respectively. Transaction fees are 2.6% plus 10 cents for all plans, and each includes 24/7 customer support. You’ll also receive a register, so you’ll have the hardware necessary to process payments.
If you run a multi-location business, Lightspeed can provide a bespoke pricing structure to suit your precise needs.
Shopify is one of the most popular choices for e-commerce businesses, but they also offer a comprehensive retail POS system that works for brick-and-mortar retail businesses.
The Basic plan costs $39 a month, with transaction fees of 2.7% for in-person transactions or 2.9% plus 30 cents for online purchases. The standard Shopify plan is $105 a month, with reduced transaction fees of 2.5% for in-person or 2.6% plus 30 cents for online transactions.
Larger businesses can choose the Advanced plan, which is $399 a month plus 2.4% transaction fees for online and in-store (with an additional 30-cent charge for online transactions).
Shopify POS is an ideal solution if you need omnichannel shopping, as it can process payments for purchases made in-store, on your online shop, or through any other digital marketing channel.
Setting up a retail POS system lets you simplify your operations and keep all your sales data in one place. It’s a convenient, user-friendly solution you can customize to meet your business needs.
Why not set up self-checkout in your retail business too? KioskBuddy works with Square POS to provide an effortless self-service solution for your store. Customers can scan through items on the front-facing camera of your store’s tablet and pay for items in just a few taps.
Sign up for KioskBuddy today and get a 30-day free trial.