The global point-of-sale software POS system market was worth US$12.9 billion in 2017, a figure that is expected to rise to US$30.9 billion by 2024, representing a CAGR of 13.3%* from 2018 to 2024.
If the core of your business is selling products, you need to invest in a POS system and POS system today. But before you do, let’s first clarify what exactly a point of sale system is. This article will help you understand the following aspects.
What is a POS system?
Types of POS systems
The main components of a POS system
Main features of a POS system
What is a POS system?
POS stands for “point of sale”. A POS system is used to make sales in physical and online stores.
Gone are the days when retailers used cash registers to process sales and then transferred the data to accounting and stock lists. Today, retail POS software allows you to streamline invoicing, promotions, returns and more.
Point-of-sale systems can be integrated with other systems and software such as e-commerce platforms, accounting applications, ERP systems and inventory systems.
A complete enterprise point of sale system can handle sales POS system tracking and reporting, analytics, inventory tracking, mobile connectivity, customer data management, staff management and powerful integrations.
Types of POS systems
POS systems can range from simple processors to complex cloud-based systems depending on the needs of the organization, the type (physical or online) and size (small, medium and large enterprises). They are generally classified into three types.
Mobile POS
A mobile point of sale system or POS uses an electronic device, such as a smartphone, tablet or other mobile device, as a terminal to which you can connect a credit card reader. It is highly portable and allows you to install other peripherals such as barcode scanners and receipt printers.
The POS system is used to process POS system payments and can also have other functions such as inventory management, loyalty programs, sales tracking, reporting and much more.
These systems are best suited for small businesses and entrepreneurs, small retail stores, pop-up shops and fast food outlets. mPOS systems do not take up much space and are very affordable and convenient.
Terminal POS
A POS terminal is a software/hardware-based system with additional peripherals such as barcode scanners, credit card readers, receipt printers and cash drawers.
These systems have a wide range of functions such as inventory management, reporting and analysis, payment receipts by e-mail, CRM and loyalty programmes.
They are best suited for retail stores with cash-only operations. Thanks to their advanced features and affordable price, they are used in restaurants, grocery stores, boutiques, book and magazine shops, beauty salons and online shops.
Cloud POS
Cloud POS is an online or web-based POS service that can be easily used with existing devices such as computers, tablets and printers.
These systems have all the functionality of a POS terminal. The only difference is that instead of the cloud-based POS system being installed on a server that you maintain, it is installed in a data center maintained by the POS provider.
They are suitable for all types of businesses, especially start-ups, as they offer clear advantages in terms of cost, simplicity, flexibility and functionality.
Main components of a POS system
Hardware and software are the two main components of a POS system, working together to complete sales transactions.
Hardware
The hardware of a POS system consists of a physical configuration, such as a cash register connected to a computer or server, or even a portable device, such as a tablet or smartphone, connected to a cloud-based system.
It may include additional equipment such as barcode scanners, receipt printers, label printers, cash drawers, scales for weighing goods and swipe machines for processing bank or credit card payments.
Software
POS software stores information and stores it in a database. Feature-rich Clothing Store Inventory Software offers a wide range of functions, including invoicing and order processing, sales tracking and reporting, inventory tracking, returns, analytics, mobile connectivity, customer data management, staff management and loyalty management.
