Point of Sale (POS) systems have become an essential tool for retailers in recent years. These systems help streamline business operations, improve customer experiences, and provide valuable insights into sales data. However, not all POS systems are created equal, and choosing the right one can make all the difference. In this post, we’ll discuss how picking the right POS system is key, especially when it comes to credit card processing fees, inventory management, and e-commerce capabilities.
Credit Card Processing Fees
Credit card processing fees are one of the most significant expenses for retailers. While most payment processors charge a standard 3% per transaction, some point of sale systems lock you into variable credit card processing fees, which can add up quickly. These fees can range from 4% to 6% or even higher, resulting in a significant impact on your bottom line. As such, it’s essential to choose a POS system that offers transparent and affordable credit card processing fees.
Imventory Management System
Inventory management is another crucial aspect of a POS system. Retailers need to track their inventory in real-time to ensure they don’t run out of stock, resulting in lost sales. A good POS system should offer accurate and up-to-date inventory tracking, making it easier to restock products and manage your supply chain efficiently. However, some POS systems may make inventory management more difficult, leading to inaccurate data and lost sales.
E-Commerce
E-commerce is another critical consideration when choosing a POS system. In today’s digital age, more customers are shopping online, and retailers need to keep up with the trend. A POS system that integrates with e-commerce platforms can make it easier to sell online and offer buy-online-pickup-in-store (BOPIS) or buy-online-pickup-at-curb (BOPAC) options. However, some POS systems may not support e-commerce, making it difficult to offer a seamless online shopping experience to your customers.
A Cautionary Tale
The importance of choosing the right POS system is best illustrated by the example of Kmart. The company’s reliance on outdated IBM point-of-sale registers and inventory systems from the 1980s put them at a significant disadvantage compared to their competitors, Walmart and Target. Kmart’s outdated systems made it difficult for them to maintain accurate inventory records and respond quickly to shifting consumer demands. This technological lag had a profound impact on Kmart’s operations and bottom line, resulting in lost sales and frustrated customers.
Let Us Help You Choose!
Choosing the right POS system is crucial for retailers. Consider factors such as credit card processing fees, inventory management, and e-commerce capabilities when evaluating different POS systems. A good POS system can help streamline business operations, improve customer experiences, and provide valuable sales data insights. On the other hand, choosing the wrong POS system can lead to lost sales, inaccurate data, and frustrated customers, as illustrated by Kmart’s example. We can help you in choosing the right system to fit your needs! Give us a call today and we can talk about how we can help.
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