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Why Retail Stores Need To Use Cloud POS Software

Why Retail Stores Need To Use Cloud POS Software

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

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 behavior is here to stay.

What Is Cloud POS Software?

Retail Cloud POS

A cloud POS system is a retail management software 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 big 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 customers and inventory between in-store and online sales.

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 POS Software For Retailers Today

1. Real-Time Inventory Management Across Your Entire Business

inventory management

As traditional shoppers are increasingly buying online for store pick-up or delivery, retailers need to keep track of inventory in ever more places. This is a major headache for many retailers as online sales 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 locations in real-time, often break down or require expensive third-party tools and technical support to fix.

With uncertain demand throughout the pandemic, managing inventory using traditional systems that are separate or sync only once a day 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 quantities in the POS system aren’t accurate.

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 online sales from stores for pickup or delivery with ease
  • buy online, pay in-store during pickup
  • buy online, add more / exchange / return in-store
  • 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 POS 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 during order 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. Similar to how people sharing a Netflix account can watch shows on Windows or Mac computers, Android or Apple smart devices, people selling using a cloud POS can work off of any of these 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. This 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”.

What’s important to remember is that being omnichannel is about more than simply making sales in all channels. It’s about providing a seamless experience for shoppers. 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. But in the long-term, omnichannel retailers are more profitable because they have more opportunities to engage with their shoppers across different channels. And omnichannel drives higher-margins in-store sales together with the convenience of online 24/7 shopping.

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 from stores 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. Cloud POS Software Grows With You More Easily 

retail store growth

Many retailers experienced significant growth in online sales and store 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 splits 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. Automatically Be Found Online Locally

Google integration with POS

With shopping behavior 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 cloud POS software allows you to handle all of your touchpoints from in-store shopping and curbside pickup to local delivery, all under a single login. It allows retailers to be flexible with their business processes and adapt quickly when the environment changes.

With traditional systems, data needs to be manually managed between different sales channels. In comparison, cloud-based systems give merchants access to shared 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. Not only can newer 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 world post-pandemic. Make the switch to cloud today – it’s easier than you think.


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Choosing A Retail POS System: 4 Important Factors

Whether you’re a long time merchant or you’re just starting out, having the right retail POS system in place is important for your success.

A retail point-of-sale system is a management software that helps simplify and manage everything in a retail operation. Today’s modern POS software can even handle sales in store and online, and can include marketing tools designed to help you increase your revenue. 

In this article, we’ll take you through the things that you should consider when choosing a new retail POS system.

4 Things To Consider In A New Retail POS System 

cloud retail POS system

1. Cloud vs. Legacy

First, you must decide whether you prefer a cloud-based or a legacy retail POS system. The main difference between these two types of software is how data is stored and where you can use the software.

Legacy POS software (also known as on-premise, installed or desktop software) is installed on specific devices and the data created is stored on a database in a physical computer or server in the store. Because the data is stored on a specific computer or device in your store, you can only access the data when you are actually in the store. A user can only use a legacy POS software in the physical store because the software is also saved on computers in the store. You can compare it to having a software program or an electronic document saved on your computer at home – they cannot be accessed from anywhere else.

In comparison, cloud retail POS systems save all data in a secure cloud server located outside of the store with a reliable hosting service such as Google Cloud. Data that is stored in a cloud server can be accessed from anywhere with internet and will have advanced security control over who can access it. A similar example of how cloud systems are different would be to consider traditional video rentals with Netflix. With a video rental, you can only watch it if you have a physical tape or DVD player. With Netflix, as long as you have an internet connection, your favorite shows can be accessed from anywhere because Netflix’s video player and all of their shows are stored in cloud servers which users can access based on login usernames and passwords.

When deciding between the two types of POS software, you must consider which one is a better fit for your retail business. Click here to better understand how cloud POS software is changing the retail industry.

Hardware Compatibility for retail POS systems

2. Device Compatibility

It’s important to remember that most POS software only work on specific devices. So you must also consider whether you can re-use your existing devices when selecting a new POS software. Otherwise, you’ll need to invest a considerable amount of money (and time) in new hardware devices together with the new retail POS system.

When narrowing down your POS options, look to see if the software works with existing devices and hardware such as your computers, barcode scanners, etc. Some hardware such as credit card terminals don’t need to be fully integrated but there should be ways to use them if you would like to avoid buying new hardware.

Expert Tip: Just because a software is cloud-based, does not mean that it works on all devices. The earliest cloud POS software were built for specific operating systems and can only be used on specific devices (e.g. iPads)

Easy employee training and automation of retail POS systems

3. Training And Automation

Retailers may be tempted to choose the cheapest POS software option when looking for a new software. But it’s important to consider the cost of training staff to use a new retail POS system in the overall cost of switching.

A POS system that is inexpensive but difficult to use can cost you a lot in the long term. This is especially true for high-traffic retailers that deal with peak periods and long lineups. It is also important for retailers with high turnover rates or seasonal peaks. If you are constantly training new staff members, you need to consider a solution with built-in training tools that are easy to use.

User-friendly software that is easy to operate will speed up store operations and make for happier, more productive employees. This means a faster onboarding process and lower ongoing training costs for you.

At the same time, it’s important to also consider automation features when looking at new retail POS systems. Besides ease of use, you will want to consider POS tools or features that eliminate routine tasks. Examples include managing inventory in store and online. This type of automation helps to reduce staffing costs and overall reliance on trained staff to handle ongoing, repetitive tasks that don’t add value.

How a retail POS system drives growth

4. Scalability Of Retail POS Systems

Many retailers make the mistake of choosing a POS without thinking about long-term growth. While you may only have one retail location with minimal inventory now, there’s no way to know how quickly your retail operations will grow. That’s why it’s important to consider the future cost and expandability of any retail POS system.

This means that your POS software should be able to grow or scale with you. Look out for the following features when selecting a new retail POS system: 

  • The ability to add new sales channels (e.g. online store, Facebook Shop) linked to inventory and customers
  • The ability to add new stores, selling zones, and stock allocations to split inventory
  • The ability to see customer history across all locations and channels
  • The ability to use multi-currency and multi-language
  • The ability to handle high transaction and inventory volume
  • The ability to automate tax calculations with exceptions across locations and channels

Some retail POS providers charge based on the number of stores and transactions volume. This means that eventually you will have to invest a substantial amount of money upgrading your POS plan or investing in a new POS altogether when you’re ready to expand. So rather than wasting resources switching to a new POS provider, choose a POS software that supports retail growth in the long-term, right from the start.


We hope you found this article helpful!

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12 Helpful Features You Should Look for in a Retail POS System

12 Helpful Features You Should Look for in a Retail POS System

Owning the right POS system is essential to the success of any retail business. Today, a retail POS system can do much more than just handle payments and record sales – innovative POS technology now functions as a complete retail management system. 

In other words, a feature-rich retail POS system acts as a tool that enables you to both manage and grow your store.

But with so many different retail POS software in the market, how do you find the right one for your retail business?

Whether you’re looking for your first ever POS software or looking to upgrade to a new one, finding the right solution for your retail store doesn’t need to be difficult. 

In this article, we’ve broken down the most important features to consider when choosing a retail POS system. 

12 Key Features to look for in a Retail POS System

 

Point of Sale Features

Let’s begin by discussing all of the features needed in the sales portion of your retail POS. This covers all of the functionalities and features needed for a fast and easy checkout experience. 

grocery store checkout

1) Easy to Navigate Salesscreen: In order to ensure a fast checkout experience, it’s important to look for a POS system that is user friendly and designed for minimum clicksCashiers shouldn’t have to leave the salesscreen in order to complete a transaction.

2) Fast Barcode Scanning: Your retail POS system should be designed for quick scanning speed while giving you the ability to quickly recall your last search. It’s also important that your POS software can handle multiple barcodes per SKU (an internal code, a shortcode, a vendor code(s), and a manufacturer code). 

3) Advanced Inventory Search: Besides handling a high volume of inventory and transactions (read inventory features below), your retail POS software needs to have smart search functions. This will allow you and your employees to search for products by keyword, description, barcode or tag in case labels fall off or are not scannable. 

4) Inventory Management: Inventory is the most important asset you have as a retailer which is why it is necessary to track and keep an accurate count of all of your merchandise.

retail employee doing inventory check

The inventory management component of your retail POS will help you replace tedious methods of inventory control resulting in time, money, and effort saved.

5) Mobile AccessibilityMore and more retailers are recognizing the benefits of cloud technology and consequently, cloud POS adoption is growing at a significant rate. Cloud POS software stores data in the cloud giving you the benefits of remote accessibility, cost-savings, and real-time data accuracy. Click here to learn more about the benefits of cloud POS technology.

You’ll also want to make sure that your retail POSis completely mobile-friendly and can be run on any device. This will enable you to ring in sales anywhere in your store (e.g. on an tablet or mobile phone) which means a faster checkout experience for your shoppers.

6) Cross-Platform Access: Having a POS software that is compatible on any device is important for emergency instances when your store’s internet connection goes down. In the past, it was assumed that offline capability is the best alternative when internet access is down. But the fact is, credit and debit cards are the most popular payment methods for shoppers today, and PINpads won’t work without an internet connection.

Some systems offer the ability to store credit card details in the device until internet is back up but not only is it riskier to shopper payment details, you’re taking the chance of the stored payments not getting approved.

In today’s market, offline capability is not as useful as a smart POS platform that can be logged in from any device. When internet goes down, it’s as simple as securely logging in with a mobile device with data to continue ringing in sales.

7) User Access Rights: It is likely that you will have multiple people working in your business. Which means that your retail POS will need to be able to identify different users and give them tailored access to the system based on their role. User access rights also enable store owners to limit permissions on certain features in your POS (for ex: reports, etc.).

8) Scalability: Look for a POS software that will grow with you as your retail operations scale. Your retail POS should have the following features: the ability to handle high transaction and inventory volume, international tax settings, multi-currency handling, unlimited stores, selling zones and multiple stock allocations. 

These features will allow you to grow and scale with your POS software. Some cloud POS software have limits on the number of users and stores – meaning if you eventually outgrow your existing system, you will need to invest a considerable amount into upgrading or switching to another POS altogether

9) Customer Relationship Management (CRM)

customer relationship management

The CRM component of your retail POS software stores shopper information and allows you to better manage your customer base. It can generate huge benefits for your store – including better customer relationships, sales reports that allow you to make better business decisions and more efficient operations. These benefits ultimately lead to more sales.

10) Bulk Item Import: For fast POS onboarding, you will want to select a retail POS that can import all of your inventory and customer details. Otherwise you will be stuck manually uploading your inventory – which is an extremely tedious and time consuming task.

11) Built-In Training Tools: Smart POS systems today will have self-service functions such as built-in chat support, online knowledge portals and even step-by-step guided products tours. Not only does this minimize your onboarding costs, it ensure that staff can quickly learn how to use the system at their own convenience.

12) Marketing Integrations: Traditional point-of-sale systems are essential to retail operations management but modern cloud POS systems are data-driven which means you can now use your retail store data to drive digital marketing. A POS that has built-in marketing tools will allow you to streamline your marketing efforts so that you can sell more. For example, a POS that integrates to Google will help your retail business appear higher up in search results – resulting in more local foot traffic and sales.


TAKU Retail POS is designed for high traffic retailers looking to increase foot traffic to their physical stores. Join our beta waitlist here

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How to Actually Improve the Retail Checkout Process in 5 Steps

How to Actually Improve the Retail Checkout Process in 5 Steps

Let’s face it, no-one likes long line-ups. Slow checkout process almost always leads to frustrated shoppers and poor customer satisfaction, which can mean lost sales in the process. 

While the brick-and-mortar checkout experience has long since evolved from the standard cash register, shopper expectations have also risen along with it. Today’s retail shoppers expect a fast and easy checkout experience because of the rise of e-commerce. With convenience at their fingertips, shoppers want what they want and fast.

That’s why we’ve put together the following tips to help you speed up your in-store checkout. Keep reading to find out how you can provide a frictionless experience that will keep your shoppers smiling while you ring in more sales! 

1) Accept different payment methods 

Today, shoppers pay with a lot more than just cash or card. That’s why accommodating different payment methods can go a long way in reducing lineups and speeding up the checkout process. In fact, the more payment options you accommodate, the easier it is for shoppers to check out efficiently. 

To speed up your checkout process, consider enabling the payment types below. 

  1. Contactless Payments: Contactless payments are a faster alternative to chip and pin transactions. In fact, tap-and-pay technology has been adopted by many major credit card companies and is a popular payment option for in-store shoppers. 
  2. Mobile Payments: According to a survey done by Blackhawk Network, three out of five U.S. smartphone users have a mobile wallet. While this is a large chunk of consumers, enabling mobile pay can also help retailers capture sales when shoppers leave their wallets at home. 

Expert Tip! Check your processing contract to see if you are liable for any chargebacks on contactless payments. Though the increase in speed may still be worth the risk of possible chargebacks, you will want to minimize your exposure by encouraging the use of digital wallets (Apple Pay, Google Pay, etc.) which have secondary authentication. You can also consider having CCTV coverage in your checkout area to deter would-be fraudulent shoppers.

retail checkout

2) Offer a buy online pickup in-store (BOPIS) option

Customers value convenience over many things in retail. Checkout is one of the main parts of the shopping experience where convenience is most valued. In fact, 40% of in-store shoppers state that check-out is when convenience is most important to them

One of the best ways provide immediate shopper convenience is a BOPIS option. Physical stores are important because shoppers may not have time to wait for products to ship and are looking for something for immediate usage. BOPIS solves several problems that have increasingly discouraged today’s customers from shopping in-store by:

  1. Optimizing the customer experience by ensuring that shoppers are never disappointed (e.g. products are out of stock) when they get to the store.
  2. Saving shoppers time when they are in the store – everything is already ready for pick-up. Retailers can streamline the process even further by dedicating certain checkout lines and POS stations to BOPIS shoppers. Don’t forget to merchandise around these areas with high-margin “snackable” products to capture any last minute impulse purchases!

According to an article by the Business Insider, almost 70% of US consumers use BOPIS. Buy online pick-up in-store options significantly increase checkout speed because all shoppers have to do is come to the store and pick up their orders. In some cases, 50% of shoppers state that they decide where to buy based on whether they can pick up their orders in-store.

At the same time, BOPIS also boosts sales and profitability for merchants by improving cashflow with prepaid orders, encouraging more impulse buys in-store, reducing overall delivery costs and minimizing returns compared to e-commerce.

It’s important to remember that BOPIS is most effective when used with a retail POS that can handle “unified commerce” as real-time stock levels are key to product availability. Unified commerce is just another way of saying a total retail management platform that offers a single view of inventory, sales, and customer data across an entire business in real time. As expected, the need for real-time data grows as sales volume and transaction complexity increases.

buy online pick up in-store

3) Upgrade to a line-busting POS

One of the best ways to speed up your checkout process is to choose the right POS system. With so many different options out there on the market, it’s best to choose a POS that is designed for checkout speed. Particularly, look out for the following features in your POS software:

  • Cross-platform capabilities that let you turn any device into a station. You’ll want to ensure that your POS is mobile-friendly and that it can be run from any device. Choose a system that lets you ring in sales from anywhere in your store when lineups get too long. This means you can speed up the checkout process for your shoppers based on real-time demand.
  • Easy to navigate salescreen. Look for a POS software that is user friendly and designed for minimum clicks. Ideally, cashiers shouldn’t have to leave the salescreen in order to complete a transaction. 
  • Fast barcode scanning. To ensure a fast checkout process, it’s necessary to choose a POS system that is designed for fast scanning speed. It’s also important that your POS software can handle multiple barcodes per SKU.
  • Advanced inventory search. In addition to the features mentioned above, your retail POS needs to have smart search functions and the ability to quickly recall your last search. This will give you and your employees the ability to search products by keyword, description, or tag in case labels fall off or barcodes are not scannable.
line busting retail POS

4) Train your staff effectively

Having the right POS technology and hardware in place is not enough. Retailers need to consider the people who are actually operating the technology (sales associates).

Staff are a crucial part of checkout optimization. Which is why store owners must allocate adequate time and resources to adequately train them. To make things easier, think about adopting a POS system with built-in training tools. This will boost employee productivity and encourage self-service while significantly reducing training costs and time.

training retail staff

5) Enable self-checkout

To speed up check-out processes, one of the options that retailers can give to customers is a self-checkout section. This is especially so for small independent grocers or pet stores. Allowing customers to checkout themselves means that there are more staff that can help out other people browsing in the store — whether it is buying one item or topping up their baskets.

6) Email Receipts at Checkout

While digital receipts are environmentally friendly, they’re also useful in cutting checkout lines. For one, shoppers won’t have to wait for their receipt to print out. And your employees won’t have to waste time refilling the receipt printer – risking the chance of aggravating customers who are already waiting in line.

In addition to streamlining the checkout process, digital receipts also come with significant business benefits, including:

  • Giving retailers an easier way to build email lists and gather customer data
  • Helping reduce fraudulent returns 
  • Decreasing overhead costs by eliminating printed receipts
  • Driving future interaction when you include links to the store website and social media
  • Allowing retailers to include personalized marketing message on receipts boosting customer satisfaction and loyalty

Expert Tip! Privacy is an increasingly important customer expectation. If you are collecting email lists, make sure that your POS system gives you the ability to legally collect consent for marketing directly from your customers.

email receipts

We hope you found this article helpful!

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What Is The Total Cost Of A Retail POS System?

What Is The Total Cost Of A Retail POS System?

So…you’re on the hunt for a new point of sale system for your retail business to improve your store operations. But what is the cost of a retail POS system today?

Maybe you’re unhappy with your current POS software and looking to upgrade to newer technology. Or, perhaps you’re still using pen and paper to manage your retail operations. 

Whatever the case maybe, we’ve got you covered!  

In this post, we’ll explain how much a typical POS system costs and the different factors that make up that cost. We’ll cover everything from software, hardware, and payment processing fees. But before we dive into how you can find the best and most cost-effective solution for your store, let’s get started with the two main types of POS software for retail on the market today.

Legacy vs. Cloud Software

The price of your POS system will depend heavily on the type of software you choose. Traditional, on-premise systems usually require an upfront investment of $4,000-$7,000. While you own continued access to use purchased licenses with this upfront payment, remember that you usually only have access to the version that you purchased. This means that you will need to pay some type of fee to get access to software upgrades or support services. While upgrades are not as important in the beginning, they will eventually be required to match the security upgrades of the operating system (e.g. Windows, etc.) or integrated tools.

In comparison, modern cloud-based (SaaS) software requires little upfront investment – instead you pay a monthly subscription fee. While this fee is ongoing, it’s important to remember that the monthly cost of cloud software is often less than on-premise software once you include the reduced cost of technical support (e.g. technicians on-site, support plans, upgrade fees) and you don’t need to worry about lost data as your information is always backed up to the cloud. The monthly cost of cloud POS software varies but to really figure out how much you can expect to pay, you’ll need to consider several factors such as the number of users, stores, features, the size of your business, etc. On average, it ranges from $80-$200 per station per month.

To learn more about on-premise vs cloud POS software, click here.

Hardware

Next, you’ll need to consider your hardware costs. Remember – POS software and hardware are not universally compatible. So once you’ve decided on a software, you’ll need to have the right hardware in place to support your POS system.

With that being said, the amount you spend on your POS equipment depends on your industry needs and how you operate. Are you planning on ringing in sales with tablet devices? Are you issuing digital or printed receipts? Does your inventory volume require you to scan items at a fast pace?

A small store owner may only require one or two tablets to operate while a mid-sized retailer may need several monitors, receipt printers, and barcode scanners. 

Payment Processing Fees

Arguably the most overlooked cost to a merchant are payment processing fees which can end up costing a lot in the long run as they are also an ongoing cost of business. This is why you should take your time to research your options.

For those who are not familiar with payment processing, every time a customer uses a credit or debit card, you will need to pay a fee to process that transaction. Payment processors such as Bambora or Global are the third-party service providers who process credit card transactions in exchange for a fee.

Some POS vendors act as their own card processors (Square, etc.) while others offer integrated payments. Depending on the size of your business, you can expect to pay at least 2.6% + a small transaction fee per transaction. Similar to your hardware, it’s best to go with a payment provider that integrates well with your POS system. Many POS companies offer special pricing if you opt to go for one of their preferred payment processors.

What to Consider Before Purchasing a POS System

Finding the right POS system for your retail business depends on your unique business needs. A POS software that works extremely well for one retail business (e.g a clothing store) may not work well for another (e.g. a high-traffic grocery store). 

So, we’ve put together a checklist to help you find the right POS for your store. Here are some additional cost factors to consider when hunting for a new POS system:

1. Size of your retail operations: Most POS vendors will charge per location or store. Meaning the larger you get, the larger the cost to your business. Which is why it’s important to think about scalability when you make a decision about your POS.

Merchants that wish to scale their retail operations should opt for a POS system that is built for multi-location and high growth stores. This can help you save a significant amount of time and money down the road. Look out for the following features:

  • Unlimited stores, selling zones, and stock allocations
  • Multi-currency and multi-language features
  • The ability to handle high transaction and inventory volume

2. The quality and complexity of features: It makes sense that a more complete and useful system would cost a store owner more. While smaller retailers may not need to pay for robust features, mid-sized and larger merchants may have to.  

Most POS systems come with tiered pricing plans. If you are looking for basic features (salesscreen, basic inventory etc.) then you can go for a lower-tiered plan. But if you require more advanced features (pricebooks, accounting integration, advanced inventory etc.) then you’ll have to go with a higher-tiered plan.

3. Open API access: If you are a growing business or already use other tools that you need to integrate with your POS, you will want to make sure that the POS system you’re looking at has an open API. Essentially, this is what allows merchants (with their own developers or marketing agency) to access backend data to integrate to or even enhance other applications they are already using. This is particularly important for a merchant looking to create or add innovative tools that improve their ability to compete. Examples of this include retailers looking to integrate their own custom e-commerce site, existing ERP system or even integrate to RFID devices to manage shrinkage.

4. Device Compatibility: As noted above, you need to consider compatibility with your existing devices when purchasing a POS. You don’t want to invest even more money and time in new hardware devices. This is more than simply whether your POS can run on certain devices, it includes whether the system you’re looking at can work with your existing credit card terminals, barcode scanners, etc.

5. Training and onboarding costs: Another important yet overlooked cost is the price of onboarding new POS technology. A POS solution that is inexpensive but difficult to use can cause your business a lot in the long run – this is especially true for high-traffic retailers that deal with long line-ups and peak periods. It is also important to consider if you are a retailer with a high turnover rate or seasonal peaks. If you are constantly training new staff members, it would be best to select a POS system with built-in training tools.

Remember – the proper POS software will not only help speed-up store operations, it will help you increase sales and can result in happier, more productive staff members.

onboarding cost of pos system

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How to Successfully Manage Multi-Store Retail Operations

How to Successfully Manage Multi-Store Retail Operations

Going from a single retail store to a multi-location operation comes with different business challenges. But, at the same time, it also comes with greater opportunities to reach more shoppers and grow your sales.

In fact, with the right technology and processes in place, managing several retail stores is a great way to start leveraging the benefits of scale.

In this blog post, we’ll take you through some of the steps you should take to ensure a smooth transition from a single store to a multi-store operation.

multi-store operations

Tips for managing multi-store operations

1) Run your retail operations in the cloud

Managing several retail stores at the same time requires more efficiency and flexibility in running your business. In particular, it requires a retail POS system designed for multi-store management. This is where new cloud POS technology comes in. 

Because cloud software isn’t tied to a specific device, as long as you have an internet connection, you can access your POS and the data you need to run your business from anywhere.  Whether you’re in store, on the go, at home, or even on vacation, checking in on your stores is as easy as logging in to your POS system from an internet browser.

Cloud retail POS technology also gives you access to centralized, real-time data across all of your retail locations. So important information such as stock levels, sales history, and customer information are always up-to-date. After all, in today’s competitive retail environment, shoppers expect stores to be able to access real-time stock levels across all locations.

Accurate data leads to less stock-outs and lost sales and ultimately, happier employees and customers.

2) Minimize staff turnover risks and simplify employee training with technology

You obviously can’t manage multiple store locations by yourself. So, it’s important to hire competent staff members that you can trust to take charge of different store operations while you are away.

But even if you hire the right people, the fact is, how you manage staff is just as important as who you hire. This is especially true once you have multiple locations.

It’s important for you to be able to trust your managers (and a great manager can make all the difference in a store’s performance), but unless your staff are tied to your business, there is always a chance that an employee will quit. And you need to be prepared for that day.

There are so many examples of companies that have over-relied on one or a few individuals that there is even a term for this: “Key-Person Dependency Risk“. This is a particularly big issue for small-to-medium businesses that often don’t have the resources for back-up personnel or even cross-training of staff.

This is where technology has been able to add real value in terms of minimizing the risk of over-reliance while, at the same time, freeing up staff from doing boring, routine tasks.

A well-managed company is never dependent upon the performance of one or a few individuals. As well, no employee should be allowed to hoard knowledge, relationships, or resources to achieve job security.

https://www.rightattitudes.com/2018/09/07/key-person-dependency-risk/

This is why it is crucial to consider the built-in security controls and training tools already in place when choosing a retail POS system. Almost everything in a modern retail business flows through a retail point-of-sale system. As such, your ability to manage the knowledge (e.g. reports, costing, margins, etc.) in your business greatly depends on:

  1. Your ability to track the actions and performance of your staff with your retail POS.
  2. Your ability to easily train new staff in different roles whenever there is turnover.

If you’ve worked in retail long enough to expand to multiple locations, you know the importance of POS and how costly it can be to manage and train staff to use a new point-of-sale system.

For retailers who deal with peak periods, long lineups, or high employee turnover rates, it is essential for merchants to consider the real cost of both onboarding and training over time. Because unless you never expect to lose any staff, you will always be re-training some employees.

While you may be tempted to choose the cheapest POS software option or the one with the simplest design, we always ask our customers to take a good look at the type of security and access controls they will have right from the beginning. It is very difficult to control the data of a retail business outside of the POS system and too costly (assuming it is even possible) to get custom features added to a standard system used by many other merchants.

It’s why we put so much time into the design of the access rights and training tools within our own POS. After all, while we design our software for user-friendliness, clean design cannot be simple to the point where it lacks real functionality. And in modern cloud-based POS, it’s possible for even feature-rich systems to be easy-to-use with properly designed UX and practical tools such as built-in product tutorials.

3) Implement standard operating procedures across all of your retail locations

Standard operating procedures (SOPs) ensure that business operations are consistent and predictable across all of your retail locations. Put simply, SOPs make managing a multi-store business easier – and they give your customers a consistent shopping experience. 

Standard procedures that should be established at each store include product returns and discounts, order policies, store, and security. Similar to access rights, the easiest and most common place to manage SOPs is through your POS system. So make sure to check if the POS system you’re considering has options to manage returns, discounts, cashouts, sales policies, etc.

4) Choose a retail POS that can scale with you

Many retailers make the mistake of investing in a new POS without thinking about business growth. There are many retail POS providers that restrict the number of users, inventory items or stores that can be added. Meaning that once your retail operations grow beyond a certain level, you must invest a considerable amount of money to upgrade your POS plan or switch to a new POS altogether. 

That’s why it’s important to choose a retail POS system that can scale with you and is built for multi-store operations! Look out for the following features when selecting a retail POS software for a growing business: 

  • unlimited stores, selling zones, and stock allocations 
  • the ability to scale faster by cloning settings for new stores
  • automated tax calculations based on geographical location 
  • multi-currency and multi-language settings
  • the ability to handle high transaction and inventory volume (this is especially important for high traffic retailers) 
  • built-in training resources for faster onboarding
multi-store management

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