A point of sale or point of purchase, is the place where customers make a transaction. This can be online, at a physical checkout counter or when they select an item from your stand or booth. Your point-of-sale system is the hardware and software that enable your business to process those sales.
A POS system helps your business accept payments and track sales. It might sound simple enough but depending on whether you sell online, have a physical storefront or both, the setup can vary. In the past, POS systems were entirely analog, which meant they had to be operated from a physical cash register. Today, modern POS systems are digital, which means you can conduct transactions from anywhere using an internet-enabled device like a tablet or phone.
1. A customer has decided to buy your product or service. If you have a physical store, the customer will ask a sales associate to ring them up at the register. That associate could use a bar code scanner to look up the item’s price or they may use a POS system that allows them to scan items visually with the camera on your device. This step happens when a customer finishes adding items to their cart and clicks the checkout button for online stores.
2. Your POS system will calculate the price of the item, which will include sales tax. Then, the system updates the inventory count to reflect that the item has been sold.
3. Your customer pays. To complete their purchase, your customer will need to use their credit card, tap card, debit card, loyalty points, gift card or cash to make the payment go through. Depending on the type of payment they choose, your customer’s bank will then have to authorize the transaction.
4. Finalizing a point-of-sale transaction is the moment when you officially make a sale. The payment goes through and you either ship the items to the customer or hand them the items they bought. A digital or printed receipt is created at this time.
A POS system typically includes both hardware and software components. The hardware component usually consists of a register, a credit card reader and/or a barcode scanner. The software component usually consists of POS software that helps businesses manage their inventory, sales and customers. businesses that operate entirely online may not need POS hardware, but businesses with brick-and-mortar locations will likely need at least some POS hardware to help them process orders and accept payments.
When it comes to setting up a POS system for your business, you'll want to make sure it can accept all major forms of payment, including cash, credit cards and mobile payments. If it makes sense for your business, your POS system should also be able to print receipts, store cash in a cash drawer and scan barcodes.
Check out this list of hardware options to get you started as you evaluate which POS setup will work best for your business.
By registering, you can keep track of customer transactions and easily process them. A connected device like an iPad or tablet can be a great alternative to a monitor, as it can be propped up with a stand and used to clock in and out. A credit card reader lets your customers pay by credit card in a secure way, whether that’s through a contactless payment system like Apple Pay or a chip or magstripe card.
Even if you're now accepting contactless payments, you may still need a designated spot to keep your cash on-hand. Point-of-sale software that's connected to a cash drawer can help minimize fraud by tracking when the drawer is opened. Meanwhile, printing out paper receipts for customers shows them exactly what they purchased, as well as the purchase date and price. Lastly, a barcode scanner reads an item's product details so you can run it through the system. It can also be used as a quick way to double-check an item's price, stock level and other details.
Retail management systems provide an abundance of data on sales, customer behavior and inventory turnover. This data, when analyzed effectively, offers invaluable insights into trends, buying patterns and areas that need improvement. Armed with this information, retailers can make informed decisions to refine their strategies, optimize their product offerings and capitalize on emerging opportunities.
POS software is like your command center. A POS system is a software that is used to handle sales transactions in a retail setting. It can be used to find items in your inventory and process sales. More robust POS systems also come with features such as sales reporting, customer engagement software, inventory management and more. A POS system also takes care of transferring funds to your bank account after each sale is processed.. Some POS solutions, such as Elintpos, include the features below. Learn more about how Elintpos compares to other POS systems.
Now that you understand POS systems a little better, you can start looking for the
best POS solution for your business. Keep in mind what and where you'll be selling when you're
narrowing down your options so that you can get the most out of your new POS system.
Different businesses will have different payment types that they accept, but some of the most common
include:
Cash
Secure online payments through an eCommerce site
Magstripe credit cards, which are cards that are swiped
Chip cards, which are credit cards with an embedded chip, are becoming more and more common.
Contactless payments, which might include a contactless card that customers tap or a mobile wallet
(e.g., Google Pay or Apple Pay) are also becoming more popular. A card-not-present transaction is
one that happens when your customer and their credit card aren’t physically in front of you, so you
have to manually enter the credit card information into the system. This can also happen when a
customer enters their payment details online during the checkout process.
Inventory management software is vital for keeping track of all your company's products. Some automated inventory software can connect with your sales data and let you know when an item is running low, so you never have to worry about stock levels again.
POS reports help you see sales and earnings more clearly so that you can make better decisions for your business. With accurate reports, you can sell more and run your business more effectively.
Team management software is a great way to keep track of your employees' work and performance. With this type of software, your team can clock in and out and some software even allows you to grant permissions so employees can access certain tasks. Having regular team meetings can be a great way to improve communication and efficiency.
Having a CRM tool that’s connected to your POS software has countless benefits, one of which being that you can see what products your customers purchase and when they bought it. With this type of customer data, you're able to personalize your marketing, communications and customer service to each individual client. This makes for a much more positive customer experience overall and could result in them returning to your business in the future and referring others.
Receipts can be very helpful when it comes to processing refunds, as there is a digital or paper trail of the purchased item. Having receipts available can help to speed up the refund process and give your customers peace of mind that they will be able to get their money back if needed.
For restaurants and service professionals, tips are often a big part of their income. They rely on tips to supplement their low wages and make ends meet. Unfortunately, many people don't realize how important tips are to these workers and don't always leave them. So, it makes sense that POS solutions that allow customers to add a digital tip during the checkout process, are more likely to result in tips. Now that you understand POS systems a little better, you can start looking for the best POS solution for your business. Keep in mind what and where you'll be selling when you're narrowing down your options so that you can get the most out of your new POS system.
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