Nowadays, 9 out of 10 retail businesses are having a Point of Sale (POS) system. It is an essential tool for retailers to conduct sales in person as well as manage stores. Every POS system consists of software and hardware components that help you run the daily operations of your business easier. Although the system can be very useful to retailers, there are also some weaknesses of a POS that need to be aware of.
In today’s article, we will go through some of the most common POS disadvantages that merchants might encounter when using POS systems.
Misunderstandings that are often assumed as POS disadvantages
A common misunderstanding that retailers might assume as POS disadvantage is POS fees. Most cloud-based POS systems will charge you a subscription fee every month, which will lessen your return on investment in the long run. Make sure to note down this monthly expense into your budget when considering to purchase a POS system.
However, this shouldn’t be the reason for any hesitation when purchasing a POS system. Usually, POS providers would offer subscription services that are divided into several pricing levels depending on distinct demands.
One of the most common POS disadvantages is system upgrades. The software will need frequent updates with new versions from the provider. When an upgrade is necessary for the expansion of your retail business, you will have to pay for new licenses and software. Besides the complications and costs that come with these updates, you may also need to invest in updates of POS hardware.
But don’t worry, POS providers usually offer free upgrades for their clients. And if the technical setups are too complicated, you can contact them for immediate support right away.
A consistent internet connection is vital to maintain normal operations since there might be some unexpected events that happen during the open hours. If the internet suddenly goes off, you might not be able to accept payments securely, receive new orders, or update your inventory stock in real-time.
Most advanced systems would provide both online and offline modes to optimize businesses’ performance. During offline mode, merchants can still view the products, create orders, and receive payments as usual. The offline data will be saved locally until being automatically synchronized when the internet is back.
Customers who use their credit or debit cards when conducting transactions might run the risk of credit/debit card numbers being exposed to other individuals. However, no need to worry about that because a POS system is usually integrated with popular PCI-compliant payment gateways to ensure the transparency and security of transactions.
Off-the-shelf POS system
Another POS disadvantage that new business owners might confront is running a business with an off-the-shelf POS system. Though such systems have more reasonable prices compared to customized ones, they often come with limited features. Businesses could experience sudden issues during busy hours that a POS with basic functionality can’t handle.
For that reason, the best thing you can do to minimize these problems is to choose the best POS system customized to your needs. A tailored one may cost you quite an expense for now but it is totally worth it.
Each approach has its own advantages and disadvantages, and it is important to consider your choices carefully. Although there are a few POS disadvantages that can cause a little discomfort, the benefits that it brings are sure to outweigh. Therefore, opt for a feature-rich POS system with advanced technology to secure customer satisfaction and increase your business revenue.
ConnectPOS is the best cloud-based POS system for omnichannel retailers. With more than 2,000 users around the world, our POS system guarantees to offer the best services for you to create a world-class omnichannel shopping experience. Contact us now and be ready to unleash the power of your retail business!