POS systems can have hundreds of features, but they are worthless if you don't use any of them. Depending on the specifics of your business, you may need a full arsenal of features, or you may prefer to keep things simple. As you look for POS software, think about what features you must have, those that would be nice to have, and which ones you'll never use. Sign up for a few demos and trial versions before making your final decision. You want to make sure the POS app is easy to use and checks off all the boxes on your must-have list.
Besides the basic cash register features that every POS solution has, you should look closely at some key feature sets before selecting a system. Keep in mind that specific capabilities within each feature set vary from system to system. Advanced features may only be available at higher service tiers, or you may need to add apps or integrations to the POS system.
Mobile App Support
The best POS systems have apps that you install on tablets and smartphones, transforming the devices into mobile POS terminals. Retailers can use them as mobile checkout devices to ring up customer orders anywhere on the store floor. Restaurants can use them to take orders and accept payments tableside. You can also attach the tablet to a stand and add peripherals, such as a cash drawer and a receipt printer, to create a countertop checkout station.
Be mindful of the platform the mobile POS supports when comparison shopping. Although some POS systems can be used with both Android tablets and iPads, some are specific to one platform. If you have a strong preference for one platform or already have tablets and phones you want to use, this is an important consideration. Dual-platform POS system vendors include Epos Now, Square and PayPal.
iPads are the preferred platform for most POS providers. These devices are well known for their user-friendly interface and stability. iPads also have superior security because of the closed nature of Apple's iOS. That makes it harder for hackers to install malware on the devices. But you pay for that added security; iPads tend to be more expensive than Android tablet POS systems. iPad POS systems include Vend, TouchBistro, Lightspeed, Talech and Revel.
Android may be the more popular platform with consumers, with over 2.5 billion devices in use, but not when it comes to POS systems. While iOS-based systems are more common, Android tablets tend to be less expensive. With multiple manufacturers, there's more competition in the market, resulting in lower prices and broader product selections. That can save you money as you set up your system, add devices, or replace broken, lost, or stolen tablets. An example of an Android POS systems is Toast.
Inventory Management
A POS inventory management system does a lot of the work for you, automatically tracking and ordering items. When considering inventory management, think about what you really need. Do you need a basic product catalog or menu-item countdown? Do you need to track quantities, including components or ingredients? Do you need low-stock alerts or automatic reordering?
If you have a retail business, estimate how many SKUs you need the POS system to support. Some vendors support a limited number or SKUs, and others offer unlimited packages. If you do need advanced inventory management features and they're not available in the POS you want, make sure the POS system integrates with your inventory software.
Customer Management and Loyalty Programs
Customer retention is an important part of running a store or restaurant. Many POS systems have built-in tools and features to help you manage and retain your customers, but you may not need all the customer management and loyalty features some POS vendors offer. That's why it's important, again, to consider your needs.
If your business only needs to collect customers' payment and delivery information, you won't need a built-in CRM. But if you are looking to create customer profiles with detailed purchase histories and to add notes, such as customers' birthdays, preferences, or allergies, then you want a more robust system.
Employee Management
If your employees will use the POS system, you need to control the data and functions they can access. For example, you may only want your store managers to handle refunds, or it can be a function of all cashiers. It's important to choose a POS vendor that can deliver on your employee management needs, simple or complex. Here are some things to consider:
- Do you want to set permissions for individual users?
- Do you need a timeclock for employees?
- If you're already using time and attendance software, will it integrate with the POS system?
Reporting
A big benefit of using a POS system is the reporting. Because the POS tracks all your sales, you get an overview of what inventory is moving and what is languishing. This can help you identify sales trends and ultimately boost your bottom line.
All POS systems can generate reports, but the number of reports, specific report types and customization options differ between systems. The more advanced reporting you need, the more you'll pay for the capability.
Integrations
Most web-based POS systems have integrations or apps that make it easier for you to share data between systems. For example, connecting your accounting software to your POS system saves you the time of exporting sales data. Integrating with your e-commerce platform will ensure inventory is accurate across sales channels. Look for a POS system that integrates with the business programs you already use, such as accounting software, payroll, e-commerce platforms, and email marketing services.
Unattended POS Systems
In response to the COVID-19 pandemic, a growing trend for POS software is the ability to turn a tablet or smartphone into a self-serve kiosk. Customers can use these devices to choose and purchase items, enabling merchants to transform tablets and smartphones into self-ordering and self-payment stations.
Bottom line: POS hardware typically costs between $20 and $1,000, depending on what type of hardware you need. Additional peripherals cost extra (e.g., barcode scanners, kitchen printers, display screens).
FYI: The average credit card processing fee ranges from 1.3% to 3.5% per transaction.
