The Best POS Systems for Retail Businesses

From small boutiques to large-scale department stores, retailers across the globe rely on point-of-sale (POS) systems to streamline their operations, enhance customer experiences and keep sales data well-organized. A feature-rich POS system designed specifically for retailers can make a huge difference in your business’s overall efficiency and shopping experience at your business.

To help you navigate the options on the market and find the ideal fit for your retail business, we have undertaken extensive research, studying dozens of POS systems available in the market. Our best picks were curated based on criteria that matter most to retailers, such as pricing, ease of use, hardware options, software compatibility, mobile capabilities and more.

The market for POS systems has changed significantly in recent years, thanks to technological advances and an overall decrease in pricing. POS hardware, which used to come in the form of expensive, bulky devices, can now be as simple as a tablet or smartphone dongle attachment, making these systems much more accessible and affordable to small businesses and multilocation retailers.

A POS system’s total cost depends on the software and hardware options available from the provider you choose. For cloud-based systems, monthly software charges can be as low as $0 or as high as $200 or more. Depending on your retail business’s needs, POS hardware can cost up to $1,200 for a comprehensive POS register system, which can include a card reader, barcode scanners, signature-capture devices, a terminal, tablet or computer, a cash drawer and a receipt printer. Alternatively, you may opt just to purchase a card reader that attaches to an existing mobile device and run POS software from there, which means your hardware costs will be minimal.

When choosing the best retail POS system, It’s essential to weigh the total cost against the return on your investment. The right system for your business may be a bit more expensive upfront but, ultimately, it can streamline operations and improve customer experience, potentially boosting sales.

While most POS systems offer similar core capabilities, each of the top contenders on the market offers a unique combination of features and benefits. Knowing which features your retail business needs will help you find a suitable POS solution.

Here are five essential POS system features to consider in your research.

Inventory Management

Retail businesses need to track a wide variety of products, sometimes across multiple locations, such as between a storefront and warehouse. A POS system with robust inventory management tools can offer real-time updates on product stock levels and track item popularity so you can avoid overstocking or understocking certain items.

Mobile Apps

POS mobile apps allow you and your employees to conduct transactions from anywhere, whether you’re moving around a brick-and-mortar retail location or selling your products at an event. This can speed up the checkout process and reduce lines forming at a single register, enhancing the overall customer experience.

Reporting

Your POS system should offer robust reporting features to give you insights into sales trends, inventory levels and employee performance. These POS reports help make data-driven decisions that improve profitability.

Integrations

Your retail business likely uses tools like accounting software, a top customer relationship management (CRM) solution and a marketing platform. The right POS system communicates seamlessly with the rest of your tech stack. These integrations and data-sharing capabilities help streamline business operations and provide a more unified view of the business.

Hardware

Retail POS hardware varies greatly depending on your store setup. Before investing in a POS provider, ensure it offers all the hardware you want to include in your configuration. At a minimum, you will likely need a card reader and mobile device, but you may find it prudent to invest in other hardware like a cash register, receipt printer, signature capture device and display screen.

If you’re unsure where to start when choosing the right system for your retail business, here is a step-by-step guide to help you make a well-informed choice.

1. Assess your retail business’s hardware and software needs.

Start your search by evaluating the specific needs of your retail business. A small, single-store retailer likely only needs a relatively simple, cost-effective solution, but a larger retailer with multiple physical locations or a business that wants to expand its e-commerce presence, might require a more complex, integrated system. Consider factors, such as your average number of sales transactions, inventory management needs, CRM goals and whether you need multilocation or online integration.

2. Research the best POS systems for retailers.

To start narrowing down your options, research retail POS systems by checking out online reviews, such as those here on business.com, to get a holistic view of each system you are interested in. Direct side-by-side comparisons of different POS systems can also help you make an informed decision. An example might be looking at how Shopify stakes up against Square.

3. Sign up for free trials and product demos.

When you have a shortlist of potential POS systems, see if you can give them a test run. Many vendors offer free trials or product demos that allow you to test the system’s functionality first-hand. This is a crucial step to help you determine which system combines the right features with a good UX.

4. Speak with vendors directly.

Reaching out to vendors directly can provide additional insights into each platform that may not be obvious in marketing materials. Ask questions about the specific POS needs of your retail business so you can understand how the system would work in your particular retail context. You’ll also want to inquire about pricing and contract terms and get clarification on any features you don’t fully understand.

5. Compare your top choices.

Armed with information from your research, product demos and vendor conversations, you can compare your top choices and make a final decision. Consider the pricing tiers or service plans, including any additional costs, such as transaction fees, as well as its scalability to account for any future growth. We recommend choosing a POS system that suits your current retail needs and can grow with your business so you don’t have to begin the research process all over again.

Investing in a POS system designed specifically for retailers can be a big boost for your business by helping you achieve the following benefits.

Streamline inventory management

A retail POS system can help streamline inventory management by tracking product sales, stock levels and deliveries and giving you real-time inventory updates. This reduces the risk of human error in ordering stock and allows retailers to make better inventory decisions based on how a product is performing.

Improve the customer experience

A retail POS system can create a more efficient checkout process, thereby improving your customer experience. For instance, with a mobile POS system, you can check customers out on an in-store tablet or mobile device right where they are and avoid long lines at the register. Modern POS systems can also include CRM features, such as tailored promotions and rewards, for increased customer satisfaction and loyalty.

Enhance sales reporting and analytics

Many retail POS systems provide comprehensive reporting and analytics features that deliver helpful insights into your business’ performance. The data collected by your system can help you understand sales trends and customer purchasing habits so you can make better business decisions in the long run.

Increase operational efficiency

A POS system can help your retail business eliminate manual tasks like tallying end-of-day cash and calculating sales tax as well as streamline data entry for integrated business tools like CRM and accounting software. These automation features can free up your time to focus more on customer service and drive business growth.