Choosing the BEST Retail POS Software for Retail Businesses (2024)

How Does Retail POS Software Work?

What are the most popular features and benefits of retail POS software?

Modern POS software is a transformative tool for businesses, offering a comprehensive suite of features designed to streamline operations, enhance customer experience, and boost efficiency. The most important features can be grouped into a few high-level categories.

Sales and Inventory Management

• Sales Transactions: Seamlessly handle sales transactions with support for various payment methods, including credit/debit cards, mobile wallets, and cash. Features like split payments, refunds, and store credits enhance flexibility and customer satisfaction.

• Inventory Control: Maintain real-time tracking of inventory levels, automate reordering, and control costs. Advanced inventory management ensures optimal stock levels, prevents stockouts, and reduces wastage, directly contributing to improved profitability.

Customer Experience and Engagement

• Online and Mobile Ordering: Provide customers with convenient, commission-free online ordering directly from the business's website or mobile apps. Features like in-store mobile ordering and self-service kiosks reduce wait times and enhance the overall customer experience.

• Loyalty Programs and Gift Cards: Implement integrated rewards programs and modern digital gift card systems to retain customers and encourage repeat business. Personalized loyalty programs boost customer engagement and foster brand loyalty.

Operational Efficiency

• Integrated Order Management: Streamline order processing and management with connectivity between front-of-house and back-of-house operations. This ensures accurate and timely order fulfillment, enhancing operational efficiency and reducing errors.

• Multi-Location Management: Standardize operations, inventory, and menu configurations across multiple locations. This feature simplifies management, ensures consistency, and supports business growth by making it easier to oversee multiple sites.

Employee and Financial Management

• Payroll and Team Management: Optimize labor costs and improve employee management with tools for efficient staff scheduling, time tracking, and payroll processing. Simplified scheduling and communication ensure optimal staffing levels and reduce administrative overhead.

• Payment Processing and Invoicing: Secure, seamless payment processing reduces transaction times and enhances customer satisfaction. Digital invoicing and payment solutions, along with automation tools for invoice management, streamline financial operations and improve cash flow management.

Data-Driven Insights

• Reporting and Analytics: Gain valuable insights into sales trends, customer behavior, and operational performance with in-depth reporting and analytics tools. Customizable dashboards and real-time data enable informed decision-making, helping businesses identify opportunities for growth and improvement.

• Email Marketing: Utilize integrated tools for targeted customer communication and sales-driving campaigns. Personalized promotions and updates foster stronger customer relationships and drive revenue growth.

By incorporating these key features, retail POS software supports core business functions, enhances customer experience, streamlines operations, and provides actionable insights for better decision-making. This comprehensive approach ensures businesses can operate more efficiently and effectively, positioning them for long-term success.

How does the right retail POS software help growth and improve operations?

Selecting the right software can significantly enhance multiple aspects of business operations. From streamlining daily tasks to providing strategic insights, modern POS systems offer a multitude of benefits across operations, finances, growth strategies, and team management.

Operations

• Optimized Workflow Integration: POS software can integrate with various business tools and applications, creating a cohesive system that enhances workflow efficiency. This reduces the need for multiple platforms and minimizes manual data entry.

• Real-Time Data Synchronization: Ensures that all systems, including inventory, sales, and customer data, are updated in real time. This synchronization helps in making immediate, informed decisions and reduces discrepancies across your business.

Finances and Loans

• Cost Control and Expense Management: By tracking all financial transactions, POS software helps in identifying unnecessary expenses and areas where costs can be reduced. This financial oversight aids in maintaining a healthy profit margin.

• Simplified Financial Reporting: Generates comprehensive financial reports that simplify the process of financial analysis. These reports can be customized to focus on specific metrics important for business planning and compliance.

• Loan Application Support: Detailed financial history and robust reporting capabilities provide a solid foundation when applying for business loans, making it easier to demonstrate financial stability and growth potential to lenders. Toast even offers a capital loan product for its point of sale customer called Toast Capital.

Growth & Strategy

• Customer Insights for Personalization: POS systems gather detailed customer data, including purchase history and preferences. This data can be leveraged to create personalized email marketing campaigns and loyalty programs that drive customer engagement and repeat business.

• Trend Analysis for Strategic Planning: Advanced analytics features help identify market trends and consumer behaviors, providing a strategic advantage in planning product offerings and marketing strategies.

• Flexibility to Adapt and Innovate: The ability to easily add new features or integrate with third-party applications allows businesses to stay agile and innovative, adapting to market trends like AI and customer demands swiftly.

Team Management

• Role-Based Access Control: Allows for setting up different access levels for employees based on their roles, ensuring that sensitive information is only accessible to authorized personnel. This enhances security and accountability.

• Training and Development Tools: POS software can include training modules and performance feedback tools that help in the continuous development of staff, improving overall service quality and employee satisfaction.

How to choose the best retail POS Software?

Selecting the best POS software for your business requires careful consideration of several factors. By evaluating your budget, business demands, necessary features, and intangibles such as integrations and customer support, you can find a solution that meets your specific needs. 

Budget

• Cost vs. Value: Assess the total cost of ownership, including upfront costs, subscription fees, and potential hidden costs. Compare this with the value the POS software brings to your business, such as improved efficiency and increased sales, and create a break even analysis.

• Scalability: Ensure the POS system is scalable and can grow with your business. Look for software that offers flexible pricing plans and modules that can be added as your business expands, with costs that increase in line with your growth.

• Return on Investment (ROI): Consider how quickly the POS software will pay for itself through efficiency savings and increased revenue. A higher initial investment may be justified if it leads to significant long-term benefits and new revenue centers.

Demands of the Business

• Industry-Specific Needs: Different industries have unique requirements. Choose POS software tailored to your specific industry, whether it's retail, hospitality, or another sector. This ensures the software has the functionality to support your operations effectively.

• Volume and Speed: Consider the volume of transactions your business handles and the speed required for processing. High-volume businesses need robust, high-performance systems to avoid bottlenecks and downtime.

• User-Friendly Interface: The POS software should be intuitive and easy to use for all staff members. A user-friendly interface reduces training time and minimizes errors during transactions.

Necessary Features

• Core Functionalities: Identify the essential features your business needs, such as inventory management, sales tracking, customer relationship management, and employee management. Ensure the POS software offers these core functionalities.

• Customization Options: Look for POS software that allows for customization to fit your specific business processes and workflows. Customizable reports, user roles, and layout configurations can enhance efficiency.

• Mobile and Remote Access: Consider whether the POS software supports mobile devices and remote access. This is particularly important for businesses with off-site sales or multiple locations, allowing managers to monitor operations from anywhere.

Intangibles, Integrations, and Customer Support

• Integration Capabilities: Ensure the POS software can integrate with your existing business tools, such as accounting software, e-commerce platforms, and marketing systems. Seamless integration reduces manual data entry and streamlines operations.

• Customer Support: Evaluate the quality and availability of customer support. Opt for a vendor that offers 24/7 support, multiple contact channels (phone, email, chat), and a robust knowledge base. Good customer support is crucial for resolving issues quickly and minimizing disruption to your business.

• Training and Onboarding: Assess the training and onboarding process provided by the vendor. Comprehensive training ensures your team can effectively use the POS system, while a smooth onboarding process reduces the transition period.

• Future-Proofing: Consider the vendor’s track record for updates and innovations. A vendor committed to continuous improvement and staying ahead of industry trends ensures your POS software remains relevant and effective over time.

How to Get the Most Value from Your Retail POS Software

Maximizing the value of your retail POS software requires leveraging its comprehensive capabilities and integrations to streamline operations, enhance efficiency, and improve the overall business experience. Here’s how to make the most of an all-in-one, integrated POS platform:

Comprehensive Tool Integration

• Unified System for All Operations: An all-in-one tech platform integrates all essential tools needed to run your business seamlessly. From scanning products to accepting payments, scheduling staff to managing payroll, and handling back-office tasks to front-of-store operations, a unified POS system ensures everything works together efficiently.

• End-to-End Management: Utilize the POS software to manage every aspect of your business. By consolidating functions like inventory management, employee scheduling, payroll processing, and customer relationship management into a single platform, you reduce the complexity of managing multiple systems and improve data accuracy.

Cloud-Based and Offline Capabilities

• Modern Cloud-Based System: Take advantage of a cloud-based POS system that offers real-time data access, automatic updates, and the flexibility to manage your business from anywhere. Cloud solutions also ensure data security and facilitate easy scalability as your business grows.

• Robust Offline Functionality: Ensure continuous operation with a POS system that has robust offline capabilities. This means you can continue to process transactions and maintain essential functions even during internet outages, ensuring uninterrupted service to customers.

Ease of Use

• Customizable Workflows: Choose a POS software that allows you to customize workflows to match your business processes. Tailoring the system to your specific needs enhances usability and ensures a seamless transition for your team.

• Accessible Support and Resources: Opt for a vendor that offers comprehensive training materials, tutorials, and responsive customer support. Accessible resources empower your team to troubleshoot issues independently and maximize their productivity.

Best Options for Retail Store POS Software

When choosing a retail store POS software for your retail business, consider key factors such as built-in payment processing and processing fees. Below are some popular options.

Toast

• Description: An all-in-one POS system designed for restaurants and food service businesses, offering credit card processing, order management, inventory tracking, and employee management.

• Payment Processor: Built-in.

• Processing Fees: 2.49% + $0.15 per in-person transaction; 3.5% + $0.15 per keyed-in transaction. Pay-as-you-go option available.

• Best Fit for: Restaurant and food and beverage retail operations.

Square

• Description: A popular choice for small businesses with affordable and user-friendly card readers and POS systems.

• Payment Processor: Built-in.

• Processing Fees: 2.6% + $0.10 per in-person transaction; 3.5% + $0.15 per keyed-in transaction.

Clover

• Description: Offers a range of POS systems and credit card machines with features like inventory management and customer loyalty programs.

• Payment Processor: Built-in.

• Processing Fees: 2.6% + $0.10 per in-person transaction; 3.5% + $0.10 per keyed-in transaction.

Shopify

• Description: An e-commerce platform that includes tools for managing an online store and mobile card readers for in-person payments.

• Payment Processor: Built-in.

• Processing Fees: 2.7% per in-person transaction; 2.9% + $0.30 per online transaction.

PayPal

• Description: Offers mobile card readers and a virtual terminal for online payments.

• Payment Processor: Built-in.

• Processing Fees: 2.7% per in-person transaction; 3.5% + $0.15 per keyed-in transaction.

Stripe

• Description: A payment processor with tools for online and in-person credit card payments.

• Payment Processor: Built-in.

Processing Fees: 2.7% + $0.05 per in-person transaction; 2.9% + $0.30 per online transaction.

Toast Retail: A Perfect Fit for a Retail Businesses

Though initially tailored for restaurants, Toast's POS system seamlessly transitions into the retail sphere. Leveraging our hospitality-oriented foundation, we prioritize efficiency, smooth transactions, and top-notch customer service—essential components for retail success.

Our product offerings stem from extensive hospitality insight, providing comprehensive inventory management, insightful sales reporting, and effective customer relationship management. In the retail realm, this translates into a POS solution engineered to optimize operations and drive outstanding performance.

Best Toast Retail Features for Retail POS Systems

Discover the exceptional features that set Toast Retail apart and empower businesses to thrive.

All-in-One Tech Platform

We provide operators with a comprehensive suite of tools to run their business seamlessly. From scanning to paying, scheduling to payroll, and back office to front of store, Toast Retail covers it all, catering to every aspect of business operations.

Modern Cloud-Based POS

Our modern cloud-based POS system offers integrated payments and robust offline capabilities, ensuring uninterrupted service even in areas with unreliable internet connectivity.

Hardware Options

Choose from a variety of hardware options, including handhelds and kiosks, to enhance operational efficiency and meet specific business needs.

Customer Experience and Loyalty

Our platform offers unmatched flexibility, allowing operators to create innovative customer experiences by blending foodservice and retail operations. Whether it's a wine bar doubling as a wine market or a convenience store with an embedded deli, Toast Retail enables unique and engaging experiences for customers.

Our payments integration enables seamless transitions between online and in-store purchases, allowing customers to add retail items to existing orders without additional payment. This flexibility, originally designed for the restaurant industry, is a game-changer for retail prospects.

Built-in loyalty rewards and personalized offers foster customer loyalty and engagement, a key differentiator in the retail world. Our integration with Shopify further enhances customer experiences by syncing online Shopify sales with in-store inventory, enabling efficient management of hybrid customers.

Modern Retail Management

We've transformed Toast into a first-class retail POS system by investing in inventory management and hardware support for scanners and scales. Our innovative, mobile-first tools, like Smart Scan, streamline inventory management, saving operators valuable time and increasing efficiency.

Perpetual inventory tracking ensures accurate stock counts at all times, empowering operators with real-time insights and control over their operations. With support for tens of thousands of items, our item library enables quick and intuitive changes, facilitating efficient inventory management for businesses of all sizes.

How much does Toast Retail cost?

Toast offers a range of pricing options tailored to meet the needs of different businesses, ensuring there's a plan for every business. With features like 24/7 support, flexible payment options, offline mode, and simple setup, Toast provides convenience and reliability. The Starter Kit, starting at $0/month, is ideal for single-location businesses needing 1-2 terminals, while the Point of Sale plan, starting at $69/month, is perfect for those looking for core functionality and flat-rate processing. For larger operations ready to optimize operations and drive revenue, the Build Your Own plan offers custom pricing, allowing businesses to choose features like online ordering, integrated payroll, automated inventory, and more. Contact sales for a personalized quote and to explore the full range of features available.

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