Point of Sale Software

What is point of sale software?

Point of sale (POS) software is a key requirement for all sorts of brick-and-mortar stores, be it a general retail store, restaurant, or grocery shop. It allows retailers to accept and process payments as well as sync, track, and manage other aspects of the business such as employee staffing, inventory management, sales, and purchase management.

POS software - or retail software - is generally purchased with compatible hardware and accessories such as a monitor screen, cash register, barcode scanner, receipt printer, and card readers. This entire ecosystem is usually installed near the check-in or check-out gate of a retail store.

Read on to discover the benefits and features of POS software, as well as key considerations and industry trends to bear in mind in order to find the best POS tool for your small business in Canada.

What are the benefits of point of sale software?

These days, the increasing complexities of running a business means that you can’t rely on just the traditional operation and execution practices. You need advanced tools to stay competitive among newer and bigger businesses. A well-implemented POS system will help you achieve this. Listed below are some of the benefits of installing a POS system at your retail store:

• Faster delivery of operations: A retailer has to manage multiple operations such as purchasing materials, dispatching goods, daily staffing, managing appointments, and processing payments. Traditionally, you needed multiple registers and numerous staff to enter all these details in respective files. But now, retailers can record all the information in a single POS system and save time. They are also able to better staff their employees, accurately bill customers for purchases, and execute check-out faster.
• Efficient inventory management: The current POS systems can easily handle multiple stock inventories for multiple stores. This allows businesses to be aware of the available stock and they can set reordering triggers so that they never run out of stock. Modern POS systems are even capable of analyzing purchase history and providing recommendations for the next purchase.
• Exhaustive business reporting: Keeping track of sales, revenue, and profits is quite a tedious task, especially when you’re recording transactions on paper or spreadsheets. A POS system records all transactions in a defined or customized template. This helps retailers identify their over- and underselling items, based on which, they can strategize their marketing efforts to boost sales.

What are some typical features of point of sale software?

Point of sale software solutions tend to all include some fixed features which are integral to the functionality of the platform. However, the best POS software also have a range of add-on features which will help you to find the application that best fits your business needs. Some core features include:

• Inventory management: Supervise the process of ordering, storing, and tracking your stocks to ensure smooth and uninterrupted supply.
• Payment processing: Accept, verify, and process customer payments made via various channels including cash, check, digital wallets, and cards.
• Sales tracking: Track and monitor the quantity of stocks sold over a period of time and capture the performance of your sales team.
• Discount management: Work with different types of promo codes and reward programs to offer certain discounts to customers and boost your sales.
• Barcode scanning: Scan products using their barcodes and/or similar tags and track the in and out movement of the items from the shop.
• Electronic signature (also known as e-signature): Sign documents digitally within the system to save time and paper.

What should be considered when purchasing point of sale software for your business?

Prior to purchasing POS software, it is important to bear a range of points in mind to ensure that you make the best decision for your business' needs. On top of the features that the tools offer, bear in mind the cost, ease of integration, and usability to make sure that your employees can easily start using the new system. Some key considerations include:

• Expectations from the POS: These solutions are offered at varying price ranges. It’s easier to select a solution if you know your requirements in terms of features, functions, budget, and services. Buyers should consider the requirements of their staff and customers. It would be also advisable to anticipate your future needs, so that you can check whether the shortlisted vendor offers those features or not.
• Software usability: The high employee turnover in the industry in one reason why you need to ensure that the POS software is easy to learn and use for all your staff. Ease of usability allows new and existing employees to use the POS soon after training. This makes it essential to test the usability and learning curve of a solution, which can be done through free trials and demos.
• Total cost of ownership: The cost of implementing the POS can very from a few hundred dollars to thousands. This depends on the deployment option, number of accessories, and payment plan you choose. Some vendors charge a high upfront fee for compatible accessories, while others ask a recurring fee. Most POS software are compatible only with their own hardware, which means you’ll have to consider all the costs—fixed and hidden—before making any purchases.

What are some relevant point of sale software trends?

It is also important to keep in mind that industry trends - and tech trends more generally - are always changing and need to be considered when purchasing new tools. Some trends that could impact the tool you choose include:

• Mobile payments and tablet POS on the rise: Customers are increasingly paying via mobile wallets instead of cash or card. This is pushing vendors to add wallet transaction capabilities to their systems. Vendors are now running POS software on tablets and iPads instead of bulky cash registers. Instead of customers coming to the POS, the POS goes to customers now.
• POS systems get the AI upgrade: We know that better data and analytics result in better business decisions. These days, POS systems are becoming intelligent as software enabled with artificial intelligence (AI) can capture data points about customers, sales, modes of payment, stock reordering speed, etc. This provides vital insights into what customers are buying and buying frequency. It can help retailers plan their purchases, segment customers, and make smarter marketing decisions. AI also enables POS systems to highlight any fraudulent transactions.