What is a POS System?

If you are a business owner, you will need to have an understanding of POS systems. If you are a new business owner and plan to have an eCommerce website, this knowledge is essential to developing and maintaining your online presence. Without it, you cannot do business in the virtual environment or keep your income coming in for your brand. In other words, having an effective POS system is one of the critical, key components of your business presence online. Below is more detailed information about the role a POS system plays with your online eCommerce business. 

What is a POS System?

Let's start with a definition of a POS system. POS stands for "point of sale." This refers to any payment system that is set up to serve as the transaction portal at the point of sale that lets you handle other issues within your business rather than having to be present when this process occurs. A POS system helps you accept credit cards and debit cards as well as reduce your paperwork load as it is all done automatically. Also, you'll be able to track your inventory and market to your customers through a simple process that is done internally.

A POS system can be industry-specific such as using it to track specific items in your inventory to see if you have it on hand or if you need to reorder. So it does far more than serve as a checkout mechanism. Also, you can also see whether an item, such as a flower arrangement (in the case of a flower shop) has been successfully delivered to the client.

This tool enables your customer service department to be far more efficient. When a customer inquires as to the inventory of an item, you'll be able to tell them immediately whether the item is in stock or being delivered, without having to ask multiple people or fumble around to do your detective work to locate the subject of the inquiry.

What Does POS Payment Mean?

When it comes to the bread and butter of a POS system, it's really about payments. Lightspeedhq.com defines a POS system as any location where the sale or transaction occurs. For a walk-in or brick-and-mortar business, this would be the cash register or the payment system of the company itself.

For an online store, it would likely be the website where the transaction occurred. Within site, you have the internal system that you would use to process payments. For online eCommerce retailers, this is the system that is set up to take payments and process other data.

What is Electronic Point of Sale?

As discussed above, the electronic point of sale would be the online transaction point in which a transaction occurs. For example, when you check out on Amazon, you have the item in your shopping cart that you are going to purchase. Then you hit "buy now" to buy the item.

Once you do this, the transaction is passed from the shopping cart feature to the POS system that Amazon has set up to process payments known as Amazon Payments. Amazon Payments handles your sales, sends the seller information to ship your order, and charges your card for the transaction, all in a single moment.

This amazing smart technology is present on a wide variety of sites, not just Amazon. But each POS system has its unique attributes that make the online shopping experience a pleasant one for the customer.

So, in a way, you could say that the POS system for a website is not just a mechanical tool to process payments or process inventory records. It also makes the customer journey more affable and keeps your loyal customers coming back time and time again. This factor alone should motivate you to look into the aspects of POS technology for your online business. It is not only crucial to your payment processing system; it is essential to your customer UX and UI (user experience and user interface).

When your UX and UI are weak, so are your sales and conversions. You must not overlook this key component when building or maintaining your website. It's just too important, and it carries too much weight with your target audience. It can affect your results in a big way over time so it's important to make sure you have a system in place that will meet the grade. In other words, not just a POS system will do.

What is a Point of Sale System?

As discussed above, a Point of Sale system runs on its own. But first, it has to be programmed by expert engineers from the inside. This falls under the category of Merchant Services. There are many options for finding the best POS (point of sale) system. But below are some of the key features you will want to include when looking for the ideal system for your business.

  1. Efficient, fast payment processing
  2. No hidden fees or statements
  3. Low processing fees for merchant
  4. 24/7 Technical support
  5. Capable of working with retail, virtual, or mobile platforms

In addition to these aspects, you'll want to find a system that does complimentary reporting. This way, you won't have to worry about reporting the transactions yourself. This is a significant aspect of any POS system. If you do not have this feature, you may find it to be like wrestling an octopus into a jar, and it can get out of hand quickly.

The organization of a business is essential. POS systems are a vital component of having an efficient POS system while also having real people who can help you at a moments notice when you run into any difficulties.

At Swift Payments.com, we understand the importance of creating and maintaining a POS system that works for you. Whether you are a large company needing a better system or a new business striving to create your online eCommerce presence online, they can help. They have everything you need in a POS system plus plenty of technical assistance if you run into trouble.



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