The size of the global POS market is predicted to be worth USD 34.4 billion by 2026. This isn’t surprising as digital transactions have significantly increased over the years. In addition, a pos system machine allows retailers to accept payments from customers who may not wish to pay by cash.
Some of the benefits associated with a pos system machine are:
Increase in Efficiency
A POS system machine allows for faster checkout for customers, thus improving efficiency. As a result, such a streamlined system enables both the employee and the customer to process the transactions quickly, which is also pivotal in ensuring efficient store management.
Data Analytics
Retailers have been leveraging data to generate actionable business insights. A POS system machine allows for the recording of transactions at various levels which can be used later. For instance, data points would include the most sold product, highest time of sale, most used payment methods, etc. So, all these details can be collected and analyzed.
Inventory Management
Inventory-related data can be easily derived using POS systems. This can enable a retailer to optimize and manage the inventory to efficiently maintain the stock and ensure timely re-ordering of new items.
Transparency
POS systems allow for the storage of data and receipts, including minimal human intervention. This reduces the chances of fraud and discrepancies in cash management. In addition, all receipts, including sales data and mode of payment, are available, allowing easy and quick reconciliation.
Multiple Modes of Payments
Modern-day POS systems have enhanced mechanisms allowing them to accept payments from multiple card systems, including UPI. In addition, wireless POS terminal is also available, allowing the retail store to receive the payment more readily. As a result, multiple modes of payments would allow retail stores to cater to numerous customers.
Marketing and Sales Promotion
Marketers can slice and dice the data provided by POS machines to formulate effective marketing and sales promotion strategies. For example, marketers can offer cashback and discounts on suitable products and thus enjoy higher ROI. This would not only ensure higher revenues but also generate higher customer loyalty.
Ease in Accounting
Administrative expenses are one of the most significant headaches for a retail store. With various statutory liabilities and regular maintenance of accounts an utmost priority, a POS system would ease this burden on a retail store. A POS system would have multiple records such as sales data, items sold, taxes charged, and payment receipts. This would allow for easier and faster accounting, saving the retail store both time and effort. Ease in accounting and easy availability of data would result in savings in admin costs.
Minimal Errors
Manual intervention concerning inventory management, entering product costs during billing, or even calculating the total amount can create a few errors. However, the chances of committing these errors reduce drastically while using POS machines.
A POS system machine is a vital business tool in the current era wherein digital payment in India and cashless systems have taken precedence over cash payments. However, considering a POS system solely as a payment system would be a disservice to its various functionalities. Suitable usage of POS systems would allow a retail store to improve its business and make progress.