A Point of Sale (POS) system can become the central component of a business. Offline and online sellers take advantage of the features brought by a POS system to help streamline sales processes and improve worker productivity. Advancement in technologies also brings about the evolution of these systems. ePOS systems are on the rise in which many retailers are now using its advanced features to improve specific tasks further.
What is a POS System?
POS Systems are combinations of software and hardware components allowing merchants to simplify the handling of transactions of daily business operations. One of the common forms of POS systems is the cash register, which may be in your local grocery store. Other examples include a scale with pricing features located at food stalls, or a café incorporating their menu in the system to streamline payment processing.
The Software and Hardware Components of POS Systems
It’s important to understand the different software options available for the various POS systems. There are two common software requirements found in several POS systems:
Cloud-based POS systems also go by another name known as Software-as-a-Service (SaaS) POS solutions. Online retailers and physical stores can use the Internet to access and support these systems. If the online connection goes down, most systems can track sales and save the data into an internal memory bank. The gathered information will sync back once there’s a reestablishment of the Internet connection.
On-premise POS systems are the traditional models. It requires purchasing of one or more licenses for the installation, and use of the software on computer systems and servers. Also, manual updates are necessary since these software solutions aren’t connected to the Internet but only to a private server.
Vendors can work with either software model for their POS systems to gain flexibility when handling sales transactions. Small-to-Medium Businesses (SMBs) should confirm their POS systems integrate with other business applications and procedures to help minimize tech issues.
As for the hardware components of a POS system, the following are the vital physical components that support the structure:
- Barcode scanner
- Receipt printer
- Cash drawer
- Credit card reader
- Register screen
Retailers who can automate the organization of processes for their POS hardware and software systems can gain several advantages. For instance, use the right software solution for your POS to help enhance online business exposure. It’s essential for vendors and IT personnel to understand the inner workings of these components to help overcome issues that may arise.
The Benefits of POS Systems in Retail
Information gathered by POS systems is invaluable to owners and managers of different establishments in retail. These data include profit and revenue, product sales, and ordering reports. The following are a few more advantages of using these sales systems in the retail sector.
- Real-time Detailed Reports
Managers and owners of businesses in retail can assess which products are flying off the shelves and check the items that are lagging in sales. Retailers can implement specific marketing strategies to help boost the sales of their products.
- Improved Customer Service
Using a modern POS system can help process transactions easier as opposed to using the pen and paper method of recording sales. Scanning items and recording sales become streamlined as accuracy enhances to lessen sales discrepancies.
- Efficiency in Managing Inventories
The help of real-time viewing allows retailers to see which item is running low in the inventory. You can place an order as soon as you find out this information to avoid saying things like “we’ve run out of stock” to your customers.
- Option to go Mobile
Modern POS solutions may now come with an opportunity to see sales through a mobile device. It allows staff members to move about the premises while assisting customers regarding sales freely. Employees can start and complete transactions without being glued to a physical sales terminal. Online retailers may also take advantage of this option to see deals in real-time.
- Flexible Expansion Options
Numerous POS systems have software that give retailers the ability to add multiple cash registers and computers with administrative access. Connecting POS systems to a network of computers can help minimize the use of workforce during times of need.
POS systems are essential tools to any business in the retail industry. Still, it doesn’t mean you should install these systems for the premise of establishing streamlined sales processes. Numerous retailers make common mistakes when choosing a POS system. Make sure you consider essential factors first before deciding on which POS hardware and software solution to use.