What Is a Retail POS (Point of Sale) System and Key Features

The retail industry is facing a wave of change. So, you must be ready to embrace it and move forward with the trends. Like all industries worldwide, retail sales are projected to reach around 31.7 trillion US dollars by 2025.

But, in addition to having multiple challenges in managing your retail store, customers expect more these days. They want a personalized shopping experience, knowledgeable in-store staff to explain the branded products, and, most importantly, they expect high-speed service. Also today’s customer come from various channel this include Online ecommerce or apps, whatsapp , Instagram , facebook,  Amazon etc.., Current era of business is all about an omnichannel approach to have a platform  to manage both Online and outlets using a single system.

So, to avoid being left behind due to manual and outdated systems and to grow exponentially with chaos, it is critical to implement POS systems into your retail business. 

What Is a Retail POS System?

A retail point-of-sale system is a combo of hardware and software that smooths the process of sales, accepting payments, and checking out customers. Earlier, POS systems were referred to as cash registers, but today’s POS systems are software-based. So, they can be used on a tablet or smartphone and store data in the cloud.

When the POS system is introduced in retail, it empowers the retail staff to deliver service levels efficiently and creates a more human connection with the customer, thus building loyalty in an omnichannel world.

Importance of Retail POS

Modern POS systems help retailers manage inventory, track overall sales performance, manage and track staff, collect customer contact information, and whatnot.

But what are the extra benefits of adding a POS system to the retail industry?

POS systems eliminate human error.

To err is human, and it is something unavoidable. But making errors while entering products and prices can be risky. With POS, you can enter prices and make real-time changes whenever needed.

Manage your employees

Tracking your employee’s work and managing them isn’t a cup of tea. With a POS system, you can track who worked each shift, get reports on the sales performance of each employee, and calculate the commission rate. 

Design and visualize the sales data in real-time

Managing the sales data and analyzing it has always been a headache, but not anymore. Every transaction fed into your POS system is collected and analyzed, and a clear sales report is prepared by the system. 

Get various reports for PosBytz from Sales summary, payment method wise , item sales wise, customer sales wise, employee sales wise, Profit & loss , Stock valuation , Cost of Goods , purchase orders and many more 

Also, get a unified view of your e-commerce and store sales data in a single dashboard. 

Allows to accept payments anywhere  

Payment processing is simplified to a great extent. So, customers can make payments using cash, credit cards, chip cards, gift cards, etc., from anywhere. All you need is an internet connection so that the POS system can process the payment.

Building in-depth customer profiles  

When you can collect, track, and manage every single customer’s information, you can provide a personalized shopping experience.

With a POS system, you can create customer profiles, view order histories, and even launch a loyalty program to reward your regular shoppers.

Customers purchase reports to know who is best purchase customers and how frequently he comes to your business from online or outlets.

Centralizing your inventory management

When you sell goods both online and offline, managing the inventory can pose an extra challenge. But managing inventory is significant, and you have to do it anyway. So, what the POS system does here is unify sales channels and manage your entire business on one platform. 

With PosBytz you can manage one inventory for both Online and Outlets.

Thus, you can get accurate inventory data in your POS system and sell your goods without hassle.

How Does Retail POS System Work?

A retail POS system works the same as a typical POS system would. For instance, the POS system calculates the items a customer wants to purchase, processes the payment, and modifies the inventory levels accordingly.

Let’s check these processes in detail.

1. The customer buys products from you

When a customer looks for products at your place, your store staff can check prices and availability of the product using the POS system. Once the customer decides to buy it, the store staff scans the product’s bar code and adds the items to their cart.

2. The product’s total price is calculated

Now, the POS system will calculate the total cost of products added to the cart and update the inventory count immediately. Then, the store staff can apply promo codes or discounts (if any).

3. The customer pays

The customer pays and completes the purchase using any payment method, as POS systems support it. 

4. The POS transaction is finalized.

Once the payment is made, the customer has officially made the payment. So, a receipt is given physically, or the bill is emailed. 

So, right from choosing the product to managing inventory and processing payments, everything can be customized and streamlined using a POS system.

4  Types of POS Systems for Retail

There are four main types of retail POS systems, most of which have common POS system features. Let’s learn about them. 

Mobile POS system

You can install the POS system on a smartphone or POS payment device to carry it within the retail shop. It also performs as a cash register, but it’s wireless and simplifies business transactions. 

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Tablet POS system or IPAD POS 

This POS system functions similarly to mobile POS systems. But tablets or IPADs have a large screen, so you can view things more clearly. So, it can be used in retail businesses with huge inventories to make ordering and purchasing tasks easy.

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Desktop POS system

Desktop POS systems are designed to run on a computer or laptop in a browser, as a desktop app, or as an on-premises system. This system can be connected to barcode scanners, credit card readers, and cash drawers, making it function as a cash register.

Self-service kiosk POS systems

This type can be your best bet if you want your customers to make purchases without anyone’s support. Though this type of POS seems a bit similar to a desktop POS in terms of features, it comes with extra security functions, considering that no one will supervise the transactions.

How to Choose a Retail POS System?

To choose the best retail POS system keep in mind the below-given points:

Sales reporting 

Check if the POS can generate both detailed sales reports and small snapshots of your retail store’s sales performance along with some of below reports

• Sales summary 
• Payment method wise Sales report
• Item wise sales – Top item by sales
• Category wise sales 
• Customer wise sales
• Employee wise sales
• Location wise sales

Inventory management