Everything You Want to Know About Point of Sale Software

Point-of-sale (POS) software is continually evolving. Cash registers alone cannot keep up. Brick-and-mortar retailers adopt leaner systems that operate on mobile devices in favor of complex setups costing thousands of dollars. It is not just retail stores interested in POS systems, online store owners who sell at craft fairs, trade shows, and farmers' markets are require inexpensive and easy-to-use point-of-sale solutions. So, what exactly is the point of sale software?

What is point-of-sale (POS) software?

Point of sale software is what physical store retailers use to conduct sales in person. It is sometimes a cash register, computer, or even a tablet where cashiers input products, tally the cost and execute the financial transaction. Most POS software also communicates with inventory levels to keep everything in balance.
Several big stores have complicated and expensive POS solutions, some of which were custom-built for their requirements. Independent retailers are moving away from traditional POS systems and adopting cloud-based point-of-sale solutions.

Types of POS software

Generally, there are two main types of POS software: on-premise and cloud-based. On-premise POS software requires you to be on location to use it; Terminals are the most common on-premise POS. Cloud-based POS software offers more flexibility, as you can use any connected, compatible device to access the dashboard. Such software is becoming more mainstream—the market was valued at around $1.29 billion for 2019, with an expected growth rate of more than 21.38% through 2026.

You can conduct sales and check in on your business even when you are not at the store. You access it directly from online and often compatible with most POS hardware (cash drawers, printers, etc.) and other tools in your tech stack. This is great if you are a small business that sells in a store and online, along with the occasional in-person event.

There are other types of Point of Sale softwares that fall into one or both of the above categories:

Mobile POS (mPOS): A mobile point-of-sale can move around inside or outside a store. Store owners can take transactions from a central point of purchase, like a traditional checkout counter or cash register, or wherever they want. To make transactions on the go, retailers often use hardware like a tablet or smartphone for processing transactions. It works for pop-up shops thus increasing in-store conversion rate.

Tablets: A tablet POS can be both mobiles and docked to a station. These systems run on Android tablets or iPads, acting as either the main POS or supplementing your central POS station. This is also an mPOS. Tablets work ideally when selling products with numerous details, features, and/or use cases; collecting lots of customer data at the point of purchase; self-serve options; pop-up shops, and event sales.

Desktop: POS systems that run on a desktop computer are typically on-premise solutions docked to a checkout station. They're bulky but often more reliable and robust, depending on the hardware you choose. The central POS station in a permanent brick-and-mortar store; businesses that want to add mPOS in addition to their desktop setup.