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Why Retail Stores Need to Use Cloud POS Software Post-COVID-19

Why Retail Stores Need to Use Cloud POS Software Post-COVID-19

The Coronavirus pandemic – and the shift in the way consumers shop, work, and live – has drastically changed how things are done across different sectors of the economy.

And retail is no exception. Due to the pandemic, there has been a 15-30% increase in consumers who purchase online. Consumers have also increased their use of different sales methods such as contactless payment, curbside pickup, virtual consultations, and even social commerce (purchasing products through social media). According to retail experts and shopper surveys, this new behaviour is here to stay.

To survive the pandemic and meet the new expectations of shoppers today, merchants need to use modern POS technology that will allow them to quickly adapt to market changes (e.g. future lockdowns) and easily sell both in-store and online. The need for flexibility is why retailers today are increasingly relying on cloud POS technology.

What is a Cloud POS solution?

A cloud POS system is a point-of-sale solution that doesn’t need to be installed anywhere. Instead of maintaining a server computer in your physical store, cloud POS companies host your information on secure third-party services such as Google Cloud or Microsoft Azure. This is in contrast to traditional POS systems which can only be installed and/or used on specific devices.

At first glance, having your information stored elsewhere might seem scary. But cloud-based systems have a lot of major advantages in the current shopper environment when compared to installed software. In particular, they are a lot more cost-effective and flexible. These characteristics make a huge difference during these uncertain times and are key reasons why more merchants are switching to cloud-based systems than ever before.

Our team has been supporting and building software solutions for retailers for a long-time now. Until the pandemic started, multi-location retailers were the businesses most likely to look at cloud-based POS. This makes a lot of sense since the sharing of information between different stores is much harder with traditional POS systems. But today, the pandemic has significantly increased the demand for online sales options across all sectors. This means that, to survive, even a retailer with only a single physical store needs to manage sales, customers and inventory between in-store and online sales channels.

Let’s take a closer look at some of the main benefits of replacing your traditional retail POS with a cloud-based system.

The Benefits of Cloud Technology for Retailers Post-COVID-19

1. Real-time inventory management across your entire business

inventory management

As traditional shoppers are increasingly buying online for delivery or pick-up, retailers need to keep track of inventory in ever more places. This is a major headache for many retailers as online sales channels are often handled separately with traditional POS systems. But keeping track of inventory history and stock levels everywhere you sell is critical as stock-outs mean upset customers and lost sales.

A lot of traditional POS solutions have “cloud” options but many of these are clunky, remote workarounds that don’t sync inventory across storefronts in real-time, often break down or require expensive third-party tools and technical support to fix.

With demand levels fluctuating throughout the pandemic, managing inventory using traditional systems that are separate or sync on a timer can be a serious drain on resources and finances. And the pandemic has made it even harder for merchants to afford the staff necessary to manually manage inventory or check stock levels because the numbers in the system can’t be relied upon.

With a modern cloud-based retail POS platform, today’s retailers have the ability to do all of the following within a single software:

  • share the same products across all locations and digital channels
  • split the same product stock quantities by store, website or warehouse
  • easily create new stores or stock splits to re-allocate inventory at any time
  • give staff the ability to check all locations for real-time product availability
  • control exactly how much access staff have to see costs and inventory details
  • fulfill sales across all channels quickly and with ease
  • minimize stock-outs because you can quickly adjust purchasing or move stock quantities around as sales happen, not after the fact

2. Flexibility to work from anywhere, on any device

Work anywhere with a smart cloud POS

A cloud-based retail system provides greater mobility which basically means that retailers can sell from anywhere inside the store, outside the store or online 24/7. The COVID-19 pandemic has proven that retailers need this kind of flexibility in their business. During the recent lockdowns, retailers with access to their POS systems from anywhere were able to immediately work from home or take payments outside of their stores to offer curbside pickup. 

Modern systems such as TAKU Retail can function on any device which makes it even more cost-effective for retailers to adopt. True cloud systems are not tied to any specific device. Where earlier cloud systems are limited to only a single type of hardware (e.g. iPads), the latest cloud POS systems allow retailers to use any existing web-enabled devices (e.g. Windows or Mac computers, Android or Apple smart devices) together. This type of flexibility helps merchants reduce the overall cost of hardware, even as they grow, since almost any existing device can be turned into a station.

And accessibility doesn’t refer only to selling or accessing reports. While older installed or cloud systems only give retailers access to specific functions, true cloud systems give you full access to all of the features in the software so you can run your business from anywhere. Accessibility also includes managing access rights all from one dashboard. If you’re a larger retailer, you should be able to quickly manage (or revise) the access rights for each staff member across all devices wherever you happen to be working.

3. Manage shoppers from every channel in one dashboard

unified POS

While the Coronavirus pandemic will pass, changes in consumer shopping habits are here to stay. Retail consumers are now shopping locally, cost-consciously, and digitally. Being there for your customers wherever they are is often called “omnichannel” retail or “unified commerce”. And shoppers that are using multiple sales channels are likely to continue to do so.

What’s important to remember is that being omnichannel is about more than simply taking sales in all channels. It’s about providing a consistent experience for shoppers across all touchpoints. It means making it easier for shoppers to find you, buy from you or even bring something back to you. There’s no doubt that taking orders online is important to the survival of a lot of retailers during the pandemic. Similar to the value behind impulse buying in-store, the average order size of omnichannel customers are often higher because you have more opportunities to engage with your shoppers across different channels.

Another thing to keep in mind is that online sales naturally come with higher return rates as shoppers make mistakes or shipments are damaged. Being able to manage all of your sales and returns across all channels in one place is important to minimize returns and to minimize the costs of these returns – e.g. by offering in-store returns or exchanges to avoid losing sales or paying double the processing fees.

4. A POS that grows with you 

retail store growth

Many retailers experienced significant growth in online sales and curbside pickup during the pandemic. In fact, in some essential sectors, traditional stores were unable to keep up with the demand as they struggled to handle the sudden boost in traffic. 

As your business grows and becomes more complex, your retail management system must be able to accommodate new stores, new sales channels, new employees, and new product lines without any limitations. A flexible unified commerce system will have the built-in options required for you to adapt as your business grows. This includes functions such as unlimited physical stores, unlimited back office users, unlimited stock quantity allocations and customizable tax rules. With customizable settings, fast onboarding support and transparent pricing, modern cloud systems offer retail owners a flexible tailored solution that can easily scale without hidden costs.

5. The only way to leverage consolidated retail data to sell more

consolidated retail data

With shopping behaviour shifting constantly throughout the pandemic, being able to track, manage, and engage with customers across all channels is key for long-term success. An all-in-one retail sales system such as TAKU Retail allows you to handle all of your touchpoints from in-store shopping and curbside pickup to local delivery, all in one platform. It allows retailers to be flexible with their business processes and adapt quickly when the environment changes.

With traditional systems, data is isolated between the different sales channels. In comparison, cloud-based systems give merchants access to consolidated retail data which makes it significantly easier for them to see trends as they happen in real-time.

Built with next-generation technology, modern cloud platforms are even able to help retailers leverage their own retail data to attract more shoppers. As the first POS company to be a Trusted Google Partner, TAKU is the first platform in the industry to automatically help retailers be found online by people searching nearby for what they sell. And so, not only can cloud POS systems increase sales when shoppers are engaged, they can now help retailers get in front of shoppers before they even leave their homes.

Make sure you’re using retail technology that can keep up with the rapidly changing market. Make the switch to cloud today – it’s easier than you think. Whether you prefer to set up everything yourself or would like to work with migration experts, leading cloud systems today have modern tools to make data migration and training faster than ever. 


We hope you found this article helpful!

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Traditional Retail POS VS. Cloud-Based Retail POS

Traditional Retail POS VS. Cloud-Based Retail POS

If you are a retail store owner, and you’re looking to purchase a new POS system, you’re going to have to decide between a cloud-based or an on-premise software. A new POS system is a significant investment of both time and money which is why it is so important to do research to find the best option for your retail business. 

In this article, we’ll explore the differences between the two types of software and the advantages and disadvantages of each. 

What is a Traditional POS System?

Traditional POS systems, also known as legacy or on-premise POS, store data on a local database. You can think of it in the same way as storing a report or document on your desktop computer – you can’t access it from anywhere else. 

What is a Cloud-based POS System? What is SaaS?

On the other hand, cloud POS systems store data in the cloud, meaning you can access it from anywhere with an internet connection. For example, think about using applications like Google Drive or Dropbox to store your data.

While “cloud” and “SaaS” are often used interchangeably, it’s important to remember that there are hybrid cloud solutions which are not 100% cloud-hosted. This is different from SaaS systems which are true cloud native applications – software that is licensed on a subscription basis and is centrally hosted. This central hosting is what makes SaaS so cost-effective and easier to maintain compared to hybrid solutions.

Comparison of Traditional and Cloud-based POS Systems

Accessibility: As mentioned above, on-premise POS solutions have disadvantages compared to cloud-based POS when it comes to data accessibility. Since data is stored on a local server, you can only access data if you are on-site/in-store. In comparison, because you can access data anywhere with a cloud-based POS, you don’t have to be in-store to make changes to inventory, check sales reports, etc.

data accessibility

Cost: On-premise POS systems require a high upfront investment. If you add maintenance, hardware, and re-installation costs on top of the upfront fees, on-premise software can be quite expensive unless you are able to use it for an extended period of time.  

Cloud point-of-sale software usually requires very little upfront investment – instead, you pay a monthly subscription fee. Since updates are automatic and handled by the POS provider, there are no maintenance fees required either.

However, cloud POS providers charge based on a variety of factors including number of stores, employees, and inventory. That means that a cloud POS system can be quite costly as well if it is not built to scale with your retail store. If you are leaning towards signing up with a cloud POS software, it is a good idea to choose a POS that can grow with you.

POS cost

Updates: Traditional POS systems need to be manually updated and may require on-site technical support. Not only does this take up time and money, it can be disruptive as the POS system cannot be used while the update is being done. In comparison, cloud POS software comes with the added benefit of real-time updates which are usually run off-hours. Not only does this reduce maintenance costs and help ensure that your software is always up to date, it makes your software “future-proof” as your solution will keep improving over time.

POS Update

Hardware: With on-premise POS software, it is likely that you will be tied to specific hardware devices. This is due to the fact that you must pay a licensing fee for every device you wish to operate on. The more devices you have, the more costly it will be for your retail business to implement an on-premise solution.

Alternatively, with cloud POS software, you will not be tied to specific operating devices. Innovative cloud POS technology can function perfectly on any device from touchscreen monitors and iPads to mobile phones.

POS hardware

Data: Since traditional POS systems store data on a local server, there is a risk of losing all of your data if your system crashes, there is a software bug, or there is a disaster (e.g. fire, flood etc.). On the other hand, since cloud POS software automatically stores data in the cloud, your data will be safe in the instances above. At the same time, reliable POS providers will always use reputable cloud hosting service providers such as Google Cloud or Microsoft Azure to host their applications for both security and world-class reliability. 

POS data

We hope you found this article helpful. 

Stay tuned for more POS tips! 

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