Best POS System for Retail: Choosing the Right System

If you own a retail business, ask yourself this question: Is my POS system built for retail?

Most new businesses rush into purchasing POS software. They know it’s important, but they lock into software without exploring all options.

Commonly, we see businesses that aren’t using a strong retail POS system, or they’re using a POS system that isn’t designed for the type of retail they’re doing. For example, a convenience store using Square or Clover would create problems (for some reasons we’ll cover below).

Typically, the best retail POS systems tend to be modular (e.g. support a variety of peripheral POS equipment) and have powerful, customizable inventory management settings. Inventory management is very important in a retail POS, especially for businesses that carry lots of products with variants or that sell 1000s of different products and in volume.

Interested in learning more about options for the best POS system for retail? This guide covers must-have features, key benefits, and different types of retail POS systems you might consider.

Plus, we touch on why FTx POS is the best POS system for retail and why your business should consider it.

What Is a Retail POS System?

A retail POS system that facilitates transactions at checkout. You can think of it like a digital cash register, ledger log, and inventory all rolled into one.

In other words, POS systems are essential for modern retail. However, not all POS systems work for retail.

In fact, many are restaurant-style systems. These systems prioritize features like open checks, table management, and ingredient or kit inventory. Other systems might be more retail-based, but for small, independent brands that maybe carry 10-20 different SKUs.

As a retail brand grows, they need a system that can scale with them. That means can easily connect to more registers, that offers robust inventory tools, and other important features.

Must-Have Retail POS Features

The best POS systems for retail don’t just facilitate transactions. They also have these important features that drive retail efficiency.

The first two (inventory and barcode scanning) are must-have features. Retailers need these features to perform essential day-to-day tasks. However, there are also some other key features that top retail POS systems have:

1. Inventory Management

Retail tends to involve a greater variety of products and more frequent stock updates (compared to restaurants). Retail POS systems therefore need robust inventory tracking features.

For one, the system should include SKU management or pricebook manager to edit price, product, vendor and more. An effective retail inventory software will also include automatic reordering, vendor / purchase order management, real-time inventory levels, and more.

2. Barcode Scanning

Retailers rely heavily on barcodes at the register. Scanning items in ensures better price accuracy, faster transaction speeds, and improved inventory accuracy. In addition, the best POS systems for retail also allow you to print and customize barcodes and perform price lookups from a barcode scan.

3. CRM Tools

Collecting customer data is useful in retail (and restaurants). So, this is a must-have feature for any type of POS system. However, great retail CRM-POS tools are designed to build customer loyalty and drive repeat visits.

Look for marketing automations, email integration, and loyalty program app integration.

4. Returns & Exchanges

Depending on the type of retail business, exchanges and returns tend to be more common. Therefore, the best retail POS systems allow you to manage, monitor and manage this type of transaction.

Retail POS systems should have features to manage these processes efficiently, including refund options and store credit.

5. Product Variants

This is a feature of inventory management, particularly the ability to customize inventory to match your product mix.

Retailers often have product variations for color, size, or material. They might also sell items by case or individual unit. A robust retail POS includes inventory tools to customize and facilitate these unique functions.

In general, the first two features are must-have in retail operations. The other three tend to be nice-to-have but will certainly make retail operations smoother and more efficient.

Request a demo. Explore the robust retail POS features in FTx POS. Schedule your platform walk-through today with a retail POS expert.

What Retail POS Systems Help You Do

Choosing the right POS system creates tons of value for your business. A POS can help you cut costs, sell more, be more efficient, and reduce theft, for instance.

Here are some key tasks that POS systems for retail can help you do:

1. Manage Inventory Effectively

Inventory management is a key functionality of a retail POS. Therefore, your POS system’s inventory platform should come with basic-to-advanced features like:

• Easy product database transfers or set-up
• Ability to track multichannel or multi-store inventory, providing real-time data for the entire operation
• Cycle counting automation (determine the groups of products to count and the cadence)
• Replenishment automation and vendor management
• Advanced inventory reporting

With the right POS inventory software, you can improve inventory efficiency – which has a bunch of downstream effects like reduced holding costs and shrinkage, better inventory-turnover ratios, and efficient product data management.

2. Pricing Accuracy

Price inconsistency is a real problem for multi-location or omnichannel retailers. You need consistency across your ecommerce site and brick-and-mortar locations for the best customer experience.

With a customizable POS system, you can build your pricebook to best suit your business. This will allow you to set up:

• Discount rules
• Tax settings
• Creating zones or regions for prices (e.g. if you charge different tax rates across state lines)
• Margin-based pricing automation

Basically, this feature gives you piece of mind that what’s being charged at the register is accurate. Pricebook management tools are key for maximizing profit margin.

3. Monitor Staff Performance

For large retail operations, managers can’t be in the store every day. That’s why cloud-based POS reconciliation tools are so important.

A retail POS will include tools to automate and manage:

• Drawer counts at the end of a shift
• Drawer counts at the end of the day
• Lottery reconciliation and sales reporting

Basically, just like a cash drawer count sheet, the tender amounts would be entered on the computer. Then, totals for card payments, gift cards, and other tenders could be entered, and a balance report is run.

This will provide your accounting team or corporate office with fast data about cash variances, issues with stores / cashier in terms of balancing a drawer, and help you monitor for potential issues like excessive refunds, price overrides or other potential indicators of theft.

4. Streamline Checkout

Your retail POS system helps you speed up checkout. For high-volume retailers that serve multiple customers per day, a fast POS is very important. Some features that can speed up checkout include:

• Integrated payments for faster processing
• Barcode scanning for accurate item lookup
• Easy customer lookup via phone, email, QR code scan (with loyalty), or ID
• Simplified gift card sales and redemption processes
• Easy refund / return processes
• Customizable POS screens (for checkout flow)

5. Data-Driven Reporting

Your POS collects a lot of data. About customers, inventory, sales, reconciliation issues, etc.

As a reporting hub, there’s a lot of data you can start to monitor like:

Your sales reports. Use your POS to monitor day-to-day sales (noticing trends or anomalies); you can also measure sales on a weekly or year-over-year basis to watch for ongoing growth.

See our guide to POS reporting. Check it out if you want to learn more about POS system analytics.

Types of POS Systems: Which One Is Right for Retail?

When it comes to selecting a POS system, there’s a lot of different types. But here are two big distinctions you should know.

First, POS systems can be cloud-based or on-premises (which requires an on-site server). And second, you have modular systems, all-in-one, or proprietary POS platforms for retail. Let’s take a closer look:

Cloud vs On-Premise

Most modern POS systems are cloud-based, primarily, as cloud-based software tends to be easier to maintain, support, and deliver updates to customers.

Cloud. With a cloud system, your POS hardware connects to the cloud to access your software and data. Think of it like Netflix. You can access your favorite TV shows from anywhere, and updates and new features get added to the platform automatically. This type of system tends to have lower startup costs, and they can be launched much faster than legacy systems. However, they do require more

On-Premise. This type of system is used if a business wants greater control over its data and more customization. The system runs independent of an internet connection and is stored on a local server. This type of system is slower and more costly to build.

Retail POS Hardware

You can also choose a POS by the type of hardware it uses. The three most common include:

• Proprietary POS – This system uses specific hardware. For example, Clover POS only runs on Clover devices. The advantage is this type of system is fast to launch. However, it also greatly limits you.
• Modular POS – A modular system means you can mix–and–match hardware devices if compatible with the operating system. For example, FTx POS is a Windows-based system, and it’s compatible with a wide range of Windows POS devices. This type of system allows you to customize and may help to lower costs.
• All-in-One Systems – In an AIO system, all of the hardware is available in a single unit. The HP Engage systems, for example, are technically AIO systems, the monitor, barcode scanner, and receipt printer are all housed on a single column. However, the HP Engage also supports modular devices as well.

What Should You Choose? Factors to Consider When Choosing Retail POS Software

Unless you’re a small business with a limited inventory, avoid a proprietary system like Clover or Square.

Often, we find that this type of POS lacks the inventory customization that retail stores with 200 or more SKUs need. These systems are more difficult to scale, as well, if you open a second or third location. And your hardware options are greatly limited. (You can’t use any third-party systems, which makes it impossible or costly to switch to a new system in the future.)

For retailers with large, multi-variant inventories, like convenience stores, liquor stores, smoke shops and vape stores, we recommend a modular or all-in-one cloud-based POS system. This type of POS will allow you to customize and scale your system, and you’ll have greater control over inventory settings (with more advanced features).

Additionally, you might think about these factors as well:

• Business needs: Consider transaction volume, payment methods, inventory needs, CRM, and employee management.
• Look for: User-friendly interface, mobile POS, omnichannel integration, loyalty programs, gift card management.
• Check for Integrations: Accounting, inventory, CRM, and e-commerce software. Ensure compatibility with existing hardware and software.
• Scalability: Consider future growth and increased transactions.

For individual vendors, you might also explore:

• Evaluate: Reputation, experience, customer support, pricing, and implementation.
• Test: Request a demo or trial to evaluate the system’s fit for your business.

Why FTx POS Is the Best Retail POS System

FTx POS is a POS system designed for and by retailers. Our software has been battle tested in our network of convenience stores, with many of the features built and tested to solve numerous remote management and performance tasks in retail.

Here’s some reasons our software stands out:

1. Robust Inventory Management

You get not just a POS, but also one of the best POS inventory platforms, with features like:

• Automated Ordering: FTx POS streamlines your inventory management process with automated ordering features that help you maintain optimal stock levels and avoid stockouts.
• Advanced Reporting: Gain valuable insights into your inventory performance with comprehensive reporting tools that provide detailed information on sales trends, stock levels, and inventory turnover.

2. Unmatched Customization

Don’t go for a proprietary or system that stifles your creativity. Lightspeed, for example, requires you to use their credit card processing service, as well as many of their hardware solutions. Clover and Square both require you use thier hardware.

With FTx POS, you can customize these features:

• Tailored POS Screens: Customize your POS screens to match your specific business needs and workflow preferences, ensuring a seamless and efficient user experience.
• Hardware Compatibility: FTx POS is compatible with a wide range of Windows devices, giving you flexibility in choosing the hardware that best suits your operations.
• Comprehensive Customization Options: From reporting customization to tax settings, margin-pricing, and more, FTx POS offers a high degree of customization to meet your unique requirements.

3. Industry Experience

FasTrax has decades of combined experience serving retail businesses. Our software was built for growing multi-store retail locations:

• Proven Track Record: Our company’s experience in managing a network of 60+ retail stores gives us a deep understanding of the specific challenges and opportunities faced by retailers.
• Industry-Specific Knowledge: This expertise allows us to develop FTx POS with features that address the unique needs of the retail industry, ensuring that it is a powerful and effective tool for your business.

4. Remote Management Tools

Take control of your operation, no matter where you are, with these tools:

• Efficient Reconciliation: Simplify reconciliation tasks with automated tools that streamline the process and minimize errors.
• Comprehensive Cash Reports: Generate detailed cash reports to monitor cash flow and identify any discrepancies.
• Automated Reporting: Automate report generation to save time and gain real-time insights into your business performance.
• Cycle Count Automation: Streamline cycle count processes with automated tools that help you maintain accurate inventory records.
• Effective Communication: Stay connected with your store staff and remote operations through integrated communication tools that facilitate efficient collaboration.

With FTx POS, you can confidently manage your retail operations, optimize inventory, enhance customer satisfaction, and drive business growth.

Request a demo. Schedule a demo to see our best-in-class retail POS system in action. Explore specific features and learn about scalability. Chat with a POS expert today.