What is Point of Sale?
Point of sale (POS) is where purchases are made between the customers and the merchants. At the time of purchase, the merchant informs customers about the amount of money, prepares the invoice, and provides payment options. Customers then choose the payment methods, complete the transaction and may receive a receipt as proof of payment. The process may include several applications, such as scales, barcode scanners, and cash registers.
POS system is the hardware and software system for retail businesses to keep track of the sale of their products and employee management. The POS system will help businesses to process the transactions and make sure that orders are paid. The application can be cloud-based or on-premise.
Types of POS
- Counter-based POS system: Look like a typical cash register that can scan barcodes and print receipts
- Mobile POS system: Enable remote management and easily engage with customers via mobile devices, such as smartphones or tablets
- Online POS system: Allow customers to check out online, and sync inventory in real-time
- Omnichannel POS system: Synchronize management across multiple online and offline platforms
How does a POS system work?
Basic steps of a POS system include:
- Calculate the purchase needs to be made
- Accept payment from customers
- Issue a receipt
- Store the details of the transaction
Some benefits of POS
- Decrease manual labor costs
- Increase efficiency and accuracy
- Offer flexible payment methods
- Offer advanced inventory management
- Improve customer service (by providing customers’ data)
- Support employee management
- Enable data synchronization