Choose the best POS system for retail with this guide

Not all POS systems are created equal. The right choice for you hinges on your unique requirements and budget. Some systems cater specifically to smaller retailers, while others are designed for larger businesses. Some are cloud-based and let you manage your operations from anywhere, while others may require on-site hardware. With so many options available, it’s really important to know what features matter most for your business, whether it’s inventory management, customer relationship tools, or ease of use. 

Last year, the global point of sale (POS) market size was valued at $29.02 billion. That's because there's now a ton of different POS providers out there, each claiming to have the ultimate solution for your retail needs.

This guide will help you identify essential features, compare the top providers, and simplify the decision-making process, so you can choose the perfect POS system to enhance your retail business. 

Essential features in a retail POS system

When it comes to picking the right retail POS system, some features can make or break your experience. Here are the must-have features you should keep an eye out for:

Advanced inventory management

Managing inventory effectively is super important for any retail business because it means you have the right products available when customers come looking to buy. As all retailers know, keeping track of inventory running out of stock can be a disaster. It messes with your cash flow, disappoints customers, and cuts into profits. 

Worryingly, Sage found that the ongoing supply chain crisis has led to half (52% in the US and 46% in the UK) of retail brands facing stock outs that hurt their sales. This has a knock-on effect on consumers too. In the last year, 35% of Americans reported being annoyed when they found a product they wanted was sold out or unavailable online. 

A solid inventory management system can save you time and help you make smarter purchasing choices, boosting your profits. A lot of POS providers offer some kind of inventory management. But what separates the good from the great? Let’s find out:

Good POS systems will: ✅

• Track basic inventory levels: You’ll get a clear view of what’s in stock with powerful POS software.
• Alert you when stock is running low: Get notifications when items dip below a certain point.
• Allow for manual stock adjustments: Easily make changes to your inventory to account for discrepancies, whether from theft, damage, or errors. 
• Help you categorize products: Group similar items together for easy access, making it a breeze to find what you need when you need it.

The best retail POS systems will: 🌟

• Offer real-time inventory tracking: Know exactly what you have at any moment with live updates, allowing for quick decision-making that can boost sales and keep customers happy.
• Automate reordering: Set up your system to automatically reorder popular items from suppliers when stock hits a certain level, saving you time and effort and cutting down on stockouts.
• Provide detailed analytics on inventory performance: Get insights into how your inventory is doing with reports that show trends, like which products are flying off the shelves and seasonal spikes, so you can stay ahead of the game.
• Allow for multi-location inventory management: Manage stock across different locations from one dashboard, keeping all your stores synced and running smoothly.

Automated sales reporting

Automated sales reporting saves you time by pulling together sales data without the need for  manual entry, giving you insights into your sales performance at the click of a button. With accurate and timely reports, you can quickly spot trends, understand customer preferences, and make informed decisions that drive growth.

Good POS systems will: ✅

• Generate basic sales reports: Get essential sales data, like daily totals and best-selling items, to keep track of performance.
• Allow for manual report customization: Make basic adjustments to reports based on your specific needs.
• Provide simple sales tracking: Keep tabs on sales over time, so you can see how your business is doing.

The best retail POS systems will: 🌟

• Offer real-time sales reporting: Access live sales data that updates automatically, giving you immediate insights into how your business is performing.
• Automate report generation: Set your system to create and send reports at regular intervals (daily, weekly, or monthly) so you never miss important trends.
• Provide detailed analytics and forecasting: Get in-depth insights into sales performance, including projections based on historical data, to help you plan for the future.
• Integrate with other tools: Sync your sales reports with accounting software or marketing software for a holistic view of your business.

Efficient customer relationship management tools

Strong relationships with your customers can lead to repeat business. But don’t just take our word for it. Studies show that increasing customer retention rates by just 5% can boost profits by 25% to 95%. CRM tools help you manage customer interactions, track their preferences, and provide personalized service, all of which are key to building loyalty and driving sales.

Good POS systems will: ✅

• Store basic customer information: Keep track of customer contact details and purchase history to help tailor your service and improve customer management.
• Allow for simple customer notes: Make notes about customer preferences or feedback for future reference.
• Send basic promotional emails: Reach out to customers with simple email campaigns to keep them informed about deals.

The best POS systems for retail businesses will: 🌟

• Offer advanced customer segmentation: Group customers based on their buying habits for targeted marketing efforts.
• Automate personalized communications: Send tailored messages and promotions based on customer behavior, enhancing engagement and loyalty.
• Provide detailed customer analytics: Gain insights into customer trends and preferences, helping you refine your marketing strategies.
• Integrate with loyalty programs: Manage rewards and incentives directly within your POS, encouraging repeat business and boosting customer satisfaction.

Employee management software

According to Harvard Business Review, engaged employees perform better, experience less burnout, and stick around longer. This is just one of many studies showing how crucial employee engagement is for any business. That’s where employee management software comes into play! It helps you keep your team organized and happy by managing scheduling, tracking performance, and handling payroll all in one spot.

Good POS systems will: ✅

• Let you create simple schedules: Easily manage shifts and availability to keep everything on track.
• Track hours worked: Keep tabs on employee hours for accurate payroll without the headaches.
• Store basic employee info: Have essential details like contact info and job roles handy whenever you need them.

The best POS systems for retail stores will: 🌟

• Offer smart scheduling tools: Automate schedules based on when your staff is available and busy periods.
• Track employee performance: Monitor how your team is doing so you can celebrate top performers and help others improve.
• Integrate with payroll: Sync hours and commissions directly with payroll for a smooth, hassle-free process.
• Enable team communication: Use the POS for messaging and announcements, keeping everyone in the loop and engaged.

Multi-location management features

Say you’ve got a retail brick-and-mortar store in NYC, one in Boston, and also run an online business. Managing all those locations can get a bit overwhelming, but the right multi-location management features can make it simple. Whether you’re juggling a chain of stores or a franchise, having the ability to oversee inventory, sales, and staff across all your locations from one platform is a total game changer.

Good POS systems will: ✅

• Provide basic location tracking: Keep tabs on inventory and sales for each store separately, so you know what’s happening where.
• Support manual stock adjustments: Easily adjust inventory levels as needed for each location without a hassle.

Great POS systems will: 🌟

• Offer centralized inventory management: Manage inventory across all locations from one dashboard, giving you a clear picture of what’s in stock everywhere.
• Provide advanced reporting tools: Get in-depth analytics that let you compare performance across locations, helping you make smart business decisions.
• Enable multi-location staff management: Oversee employee schedules and performance for all locations from one platform, ensuring your team is aligned and productive.
• Integrate with e-commerce: Sync your online and in-store operations for a seamless shopping experience, no matter where customers are buying.

3 top retail POS providers 

Now that you know what great POS providers offer, let's take a look at some of the winning contenders for retail. These include: 

Epos Now 

When it comes to running a retail business, efficiency is key, and that's where our retail POS system shines. This all-in-one, hassle-free tool combines hardware, software, and integrations to give you everything you need to trade seamlessly. 

Hardware

Epos Now provides all the hardware necessary for a smooth retail operation. With options for countertop and handheld barcode scanners, you can quickly scan products, manage inventory, and keep checkout lines moving. Our POS hardware is designed for speed and reliability, allowing you to:

• Process transactions effortlessly: With built-in receipt printer and easy card payment systems, your checkout process will be quick and efficient. Accept various payment types, including cash, credit, and digital wallets like Google Pay and Apple Pay.
• Run multiple stores: If you’re managing more than one location, Epos Now’s POS system is scalable and adaptable, perfect for multi-store operations.
• Streamline stock management: Our system allows for rapid stock counts, helping you maintain accuracy in your inventory management while saving valuable time.

Software

Epos Now’s POS software is as intuitive as using an iPad. Designed for ease of use, your staff can master it in just 15 minutes. Key software features include:

• Comprehensive inventory management tools: Track your products effortlessly, update stock levels in real-time, and set up automatic purchase orders to ensure you never run low on best-selling items.
• Sales tracking capabilities: Monitor sales performance with detailed reports that help you identify trends, top-performing products, and underachieving items. This data is essential for making informed business decisions and improving sales strategies.
• Reporting software: Gain insights with various reports, from sales analytics to customer loyalty tracking. Knowing which items sell best or when peak shopping times occur can help you optimize your operations and promotions.

Integrations

Epos Now understands that every retail business has unique needs, which is why our system offers extensive integrations with popular business programs. This flexibility allows you to tailor the POS system to your specific requirements:

• Accounting software integration: Automatically sync your sales data with leading platforms like Sage, Xero, or QuickBooks, reducing manual entry and streamlining your accounting processes.
• E-commerce compatibility: Expand your sales channels by integrating with popular e-commerce platforms, enabling you to manage online orders and inventory seamlessly from one place.
• Loyalty program integrations: Enhance customer retention by linking with apps like LoyaltyDog and Loyalzoo. Track customer loyalty points and create targeted promotions to incentivize repeat purchases.

Whether you're running a pop-up shop or a multi-store retail chain, Epos Now provides the tools to elevate your retail operations. Plus, with our expert in-house support team available from 9 am to 6 pm and the option for 24/7 premium support, you’re never alone in your retail journey.

Square 

Square is a payment processing and point-of-sale (POS) platform for businesses of all sizes. As noted in a Forbes review, Square may appeal to newcomers to retail.

Pros:

• Free to start
• No monthly fees in the Basic Plan
• Wide range of POS hardware options

Cons:

• Accounts can freeze due to irregular activity
• Not cost-effective for high-volume transactions
• No phone support

Square’s limitations may not make it the best fit for everyone, especially those looking for more comprehensive support and features.

Shopify

Shopify POS is an option for small businesses, with a range of features. It integrates with Shopify’s online store platform to manage sales, inventory, and customer data from one location. 

However, it has some limitations. According to a Forbes review, Shopify POS requires a paid Shopify website plan to access, and many advanced features can be pricey. Additionally, the free trial has been reduced to just three days—down from the previous 14.

Pros:

• Syncs with the online Shopify store 
• Included with a Shopify online store plan
• Offline mode for cash transactions
• Integrates with a range of other apps

Cons:

• Not free without a paid website plan
• Advanced features can be expensive
• Short three-day free trial with retail POS software

How to select your ideal retail point of sale solution 

Picking the right retail POS system can feel like a lot, but it doesn't have to be! Here are some straightforward tips to help you find the perfect match for your business.

Customization to your business needs

First up, think about what your business actually needs. A one-size-fits-all approach usually doesn't cut it. You want a POS system that can adapt to how you operate—whether you run a cozy boutique, a busy café, or a multi-location retail chain. Look for options that let you customize features like inventory management tools, reporting, and customer engagement. The more it fits your style, the better it’ll work for you! Don’t forget to check if it supports barcode scanners and integrates well with cash registers to streamline your operations.

Customer support and scalability 

Next, check out the customer support. You want to make sure you can get help when you need it. Look for providers that offer solid support options—think live chat, phone support, or even in-person assistance. Also, consider scalability. As your business grows, your POS should grow with you. If you plan to track sales across multiple locations or integrate cloud-based POS systems, you don’t want to be stuck with a system that can’t keep up when you’re ready to expand!

Consider all fees carefully to avoid hidden costs

Finally, be aware of fees. Some systems look great on the surface but can hit you with hidden costs down the line. Make sure you understand everything you’ll be paying for—transaction fees, monthly subscriptions, hardware costs (such as receipt printers or cash draws), and any add-ons you might need, like inventory management tools or additional tracking features. Read the fine print and ask questions to avoid surprises later on!

Other tips to consider when deciding your retail POS provider

Product demos are the key!

Before you commit to a retail POS provider, make sure to check out a product demo. It’s like taking a car for a spin before you buy it! This way, you can see if the system fits your style and if it’s as user-friendly as they say. Plus, it gives you a chance to see all the cool features in action. Trust me, you'll want to make sure it doesn’t give you a headache during those busy sales days!

Look up reviews and testimonials 

Don’t just take the provider's word for it—do some digging! Check out online reviews and testimonials from other retailers. This will give you the real scoop on how the POS system performs in the wild. Look for comments on customer support, ease of use, and any features that people love or hate. You want a system that keeps everyone happy, so gather all the team before making your decision!