The Best POS Systems for Retail Businesses

Gone are the days of logging sales in a manual spreadsheet. Point-of-sale (POS) systems have become fundamental to growing and managing retail businesses. The best POS systems efficiently process payments and track sales while offering a range of other features designed to improve your operations.

To simplify your research process as you choose a POS system for your retail business, we’ve thoroughly examined several POS solutions. From there, we compiled a list of the five best POS systems for retail businesses. Below, we’ve reviewed the features, pricing options and many other benefits that put these platforms above the rest.

The cost of a retail POS system is mainly based on the price of the software, transaction fees and hardware devices. Some vendors, such as Square and Helcim, charge no monthly fees, so you’ll only pay processing fees. Other POS solutions charge a monthly fee. These vendors’ higher-priced plans cater to larger businesses and include more advanced features. Examples include accounting, customer loyalty programs, detailed inventory management and omnichannel selling.

Among vendors that charge monthly fees, subscription prices start at relatively low prices, such as Shopify’s starter plan, which costs $5 per month. However, processing fees for this plan start at a very high 5 percent per transaction, making it ideal for businesses with low sales volume. If your retail business processes a higher number of transactions, a plan with a higher monthly cost but a lower transaction rate might be ideal.

Most POS vendors sell hardware devices you can purchase in addition to your subscription. Some POS systems, such as Lightspeed, include at least one device with each of its plans, even its basic plan. Clover’s Starter plan also comes with a touchscreen device featuring a built-in receipt printer, with upfront hardware costs starting at $799.

Transaction fees are another cost to consider. Helcim, for example, uses an interchange-plus pricing model to determine the rate of your transaction fees. This means your fees will vary for each transaction. These rates depend on factors such as the type of card used for the transaction and whether the card was used in person or online.

With this model, businesses with low transaction volumes will achieve higher savings than businesses that process more transactions. Other systems charge flat-rate processing fees based on whether you make an in-person (card-present) or online (card-not-present) transaction.

Across their many plans, POS systems come packed with features designed to enhance your business’s operations and improve customer interactions. Here are some key features to consider when looking for a POS system for your retail business.

Inventory Management

Inventory management allows you to track product quantities, monitor stock levels and receive alerts when your inventory runs low. It’s like having an automated stockroom manager. Some POS systems also help optimize your reordering process so that your inventory keeps flowing from storage to your sales floor and into your customers’ hands.

Sales Tracking and Reporting

Sales tracking and reporting gives you insights into your daily, weekly and monthly sales. These POS reports help you identify top-selling products, peak sales periods and overall revenue trends. This data helps you make informed decisions about setting prices and creating marketing strategies.

Employee Management

Many retail POS systems offer features that help you manage your staff efficiently. These tools can add new employees to your system and monitor when your staff clocks in and out for the day. Many POS plans also allow you to add multiple user accounts to the system, and you can manage each user’s permissions for full security.

Payment Processing

Whether customers swipe cards, scan mobile wallets or pay with cash, POS systems can cover it all. With these solutions, you give your customers a convenient payment experience. The best POS systems also ensure that the money you receive quickly appears in your account.

Vendor Management

In some POS systems, you‘ll find vendor management features that help you oversee and optimize your relationships with your suppliers. These features streamline tasks, such as vendor onboarding, communication and payment management. This accelerates your supply chain so that your products keep reaching your customers.

Add-Ons and Integrations

POS systems are loaded with a variety of features, but they might not cover all the bases for your small business. Third-party integrations and add-ons bridge this gap. The best POS systems give you access to a long list of applications that work hand-in-hand with your technology.

Multi-Channel Selling

For an omnichannel business, a POS system should integrate with an e-commerce platform or serve as an all-in-one solution. This way, your online and in-store inventories sync automatically in real time. Customers can purchase items online, be certain they’re truly in stock and pick them up at the store. At every step of the way, you’ll have the information you need to facilitate quick, seamless transactions.

Customizable Options

Many POS solutions allow you to customize your system to your business’s preferences. With this option, you can change your system’s interface to match your brand’s logo and colors, creating consistent and recognizable visuals for your customers. Customization also allows for internal changes such as categorizing your products, setting pricing structures and special discounts and choosing how your receipts’ format.

Customer Management

Some POS systems include built-in customer relationship management (CRM) tools. This feature allows you to capture customers’ purchase histories, shopping preferences and contact details. You can use this information to create customer profiles and build a marketing contact list.

Loyalty Programs

To build a loyal customer base, you need to acknowledge and appreciate your top customers. POS systems that offer integrated loyalty software facilitate this. They collect valuable insights into your customers’ preferences and behaviors, allowing you to craft personalized loyalty and reward initiatives.

Customer Support

Efficient customer support minimizes disruptions to your business operations and provides expert guidance when you’re facing an issue. We find that the best POS systems offer around-the-clock customer support via phone or web chat. This way, you can find help in whatever way is most convenient for you.

Here are a few pointers to help you choose the best POS system for your business.

1. Consider what your business needs.

Before you start your detailed research into various vendors, be confident in your business’s unique requirements for a POS system. It’s like going to the grocery store with a list of the items you need. This makes for a much simpler shopping experience.

Consider the size of your store, the channels through which you sell your products and the number of transactions you make on a regular basis. You should also determine whether your business can benefit from other features, such as customer, staff or inventory management.

2. Research vendors.

You can often find pricing tables that outline the cost of a vendor’s POS plans on its website. Compare and contrast these tables across various vendors to identify the ones that offer the most value for your investment. Consider whether your potential vendors meet the needs you identified for your business and only consider platforms that check these boxes.

3. Read customer reviews.

One of the best ways to learn about a POS provider is to read reviews from retailers that already use it. Check out reviews on sites like the Better Business Bureau and Trustpilot to assess whether a vendor’s statements match customers’ real-world experience. These reviews can give you insight into many factors, including a platform’s ease of use and the quality of its customer support.

4. Request a free trial or demo.

Once you’ve shortlisted some POS vendors, give them a try. Some services offer demos, which walk you through their systems’ devices, features and integrations. Other POS services offer free trials. This hands-on experience can give you a feel for how well a system handles tasks specific to your retail business. Ask your customers what they think of the new software and devices and consider their feedback as you prepare to make your decision.

Below are some advantages to using a POS system for your retail business.

Streamlined Sales Reporting

Many POS systems give detailed reports on your business’s sales, helping you analyze trends and identify the products your customers gravitate to most. These reports lead to smarter business strategies that get your customers what they want when they want it.

Efficient Transaction Processing

A POS system can speed up your checkout process, reducing wait times for customers. This improves their experience and frees up time for your employees to assist more customers ― even during your busiest hours.

Heightened Data Security

POS systems are designed to prioritize data security, safeguarding customer payment information so that your business can comply with industry regulations. Data encryption, for example, helps prevent unauthorized users from accessing sensitive customer information. With this security in place, you can increase trust with your customers.

Stronger Customer Relationships

With customers in mind, POS systems often include CRM features, allowing you to capture customers’ information and buying behaviors. You can use this data to create loyalty programs and tailor your email marketing efforts to their preferences. The result is stronger relationships with your shoppers.

Effective Marketing and Promotions

You can use a POS system to run promotions, discounts and loyalty programs directly at checkout. This encourages customers to spend more money with your business and encourages repeat visits, contributing to increased revenue.

All-in-One Solution for Business Management

A POS system allows you to oversee different facets of your business from one central hub. With your POS app, you can monitor sales, inventory and customer information. This makes your system a powerful tool for increasing your efficiency and productivity across the board.