What is Point-of-Sale (POS) System?

It is software that allows a brick-and-mortar retailer to make a sale of their products or items. A brick-and-mortar retailer refers to any general business, shop, store, or office that sells or works with its customers face-to-face. For example, banks, grocery stores, etc., are brick-and-mortar retailers.

Several devices are compatible with this software, like computers, tablets, and cash registers. The store owner or the cashier scans or enters the product details into the device.

The software then quickly calculates the total bill and proceeds to the transaction. Most of these devices are capable of conducting complete transactions. Some devices, however, require attachable card/QR code readers. The software also keeps an inventory of the products.

The bigger the store is, the more advanced is their POS software. Small business owners are switching to cloud transactions as they're more comfortable and less costly. You can use a Point-of-Sale software to keep an inventory, in the same, for client services, etc.

Components of a POS system:

A Point-of-Sale system comprises of many small components. There may be some devices you may need to attach to your POS system to make your billing more smooth.

1. Barcode Scanner:

It scans the individual and unique barcodes assigned to a product. They are generally of two types, 1D and 2D. A 1D barcode scanner will only read barcodes, but a 2D scanner can scan both barcodes and QR codes.
 
2. Cash Drawer:

Most of the cash registers come with a small cash drawer. This drawer is usually either locked with a key or a passcode. The cash drawer is the best in case of cash transactions to keep the money safe.

3. Credit and Debit Card Reader:

This device is either attached to the register or exists as a small, connected machine. This device reads the credit and debit cards. A card reader could be of three types – swipe, EMV chip, and tap or all-in-one. A credit and debit card reader is essential for cashless transactions.

4. Receipt printer

It isn't precisely compulsory, but some countries have laws that state a customer must be given a receipt of their transaction. Many businesses are now shifting to e-bills or e-receipts as it is more convenient and also saves paper.

5. Scale

A scale is necessary for stores that sell items by weight. These can be attached to the central POS system with a cable.

6. Label printer

It may or may not be in daily use, but a business will require printed labels for work, maybe for shipping. It is better to have a label printer to avoid the hassle.

Providing Sales Metrics and Reporting:

Point-of-Sale softwares have much more capabilities than just making bills. Store owners can view many business-related statistics and data on the POS device, making the right decisions for their companies.

POS software stores data for each item and also for overall sales. This allows store owners to view the statistics of their retail business easily. This separate storage of data helps the business owners understand the strategies that work and those that don't work.