Shopify POS is a versatile marketplace solution that assists in enhancing the customer experience and implementing a truly omnichannel strategy.

“Know your customer and you will know your business” is an old saying that has not lost its relevance over time. A key element in recognising your clientele and offering better services is the marketplace, Point of Sale (POS), which seamlessly integrates with both physical and digital store environments.

Shopify POS is a marketplace solution that provides merchants with comprehensive tools for identifying customers, accepting payments, merging store and online sales, inventory management, and reporting. It is a versatile system that enables you to manage your business sales in both online shops and brick-and-mortar stores with a single, user-friendly application.

POS offers a unique opportunity to seamlessly integrate the sales processes of online and physical stores. POS can be used on a smartphone, allowing each store employee to have a checkout terminal constantly at hand.

At this point, the reader may think all this is just another salesman's empty talk. What does all the above really mean in practice? Let's explain this through a practical example.

Morning Preparations

In a central location amidst the city's hustle stands the fictional motorcycle centre Accelerate Ten. The business has an online store and a physical shop, offering a wide range of motorcycles and related accessories. The company is run through the shop: the store and the inventory are within the same premises.

In the morning before opening, the owner of Accelerate Ten, Jarkko, opens the Shopify POS application on his phone. He goes through the morning shift's “checklist” to ensure the store is ready for opening: the aisles are tidy, products are properly shelved, and no litter is on the floors. He ticks off the checklist and opens the store.

Passion for Customer Service

The first customers of the day walk into the shop. Jarkko greets them enthusiastically and chats with them about their motorcycle hobbies.

While guiding his customers, Jarkko reaches for his phone and identifies them via the name or phone number listed in the POS. He immediately sees the customers' latest orders and the points and sales recorded in the loyalty program.

Jarkko introduces products and provides more details based on the information recorded in the POS. These details could include compatible products, promotional items, or specific product features. Jarkko records the product selections directly into the POS, forming the customer's shopping basket from these entries.

Promoting Sales and Offers

Jarkko notices that a customer is interested in a new collection of motorcycle apparel. He offers customised deals and discounts tailored to the customer's interests using the Shopify POS application, helping ease the customer's decision-making process. Jarkko sees from the customer's data that they have spent over 1,000 euros in a year and decides to give them a 15% discount, which he adds to the shopping cart with a click of a button.

A little competition between salespeople always brightens the day. Sales can be recorded in the POS per salesperson, allowing Jarkko to celebrate his leading position in a friendly contest. Jarkko has also set sales-specific commission levels for all salespeople in the POS.

Inventory Management and Order Processing

When a customer makes their choice, Jarkko uses the Shopify POS application to check the real-time stock status of products. If a product is not in stock, he can still complete the sale and arrange for the item to be delivered home by post. With Shopify POS, any purchase made in the store can be easily transformed into an online order with the press of a button.

Transaction and Customer Engagement

The customer makes their purchase, and Jarkko processes the payment using the Shopify POS application. Payment options include cash, card, MobilePay, invoice, gift card, Google Pay, Apple Pay, or any combination of these.

If the customer is not yet a member of the company’s loyalty programme, Jarkko offers the opportunity to join with the push of a button in the POS.

Product Exchange or Return

A customer arrives at the shop with a defective product. Jarkko finds it easy to check the order and associated products in the POS. The returned product is logged in the system, a replacement is given, and inventory records are automatically adjusted correctly.

The POS also allows for refunds (cash/card/online payments) to be made to the customer. Logging transactions in the POS is possible regardless of whether the customer has shopped online or in-store.

Summarising the Day

At the end of the day, Jarkko reviews sales reports and analytics from the Shopify POS application. If a cash register is in use, Jarkko can count it with the help of the POS. The POS cash register calculator is a handy tool to decrease the risk of human error. Shopify POS offers comprehensive reporting and analytics tools to better understand business trends.

Read also: Quick Overview of Shopify's New Features

Advantages of Shopify POS Over Traditional Cash Register Systems

The character Jarkko is fictional, but his daily routine and the challenges he faces are drawn from real life. Here’s a summary of features that make Shopify POS an appealing alternative to traditional cash register systems:

• Versatility: Shopify POS is more versatile than traditional cash register systems as it merges the sales processes of online and physical stores into one integrated system. Gift cards and discount vouchers work seamlessly in both online stores and physical locations. Shopify POS enables a consistent service experience for both customers and merchants.

• Real-Time Inventory Management: Shopify POS integrates with the Shopify online store, allowing for real-time inventory management. You can think of the POS as a separate interface for your online store. Product stock levels automatically update with sales made both online and in-store, reducing overstocking or product shortages.

• Customer Data and Personalisation: Shopify POS stores customer data, such as purchase history and contact details. This allows for personalised services, such as providing recommendations or sending special offers, which in turn enhances customer satisfaction and loyalty.

• Reporting and Analytics: Shopify POS includes comprehensive reporting and analytics tools that help retailers make better decisions to develop their business.

• Flexibility and Scalability: Shopify POS is suitable for both small individual shops and large retail chains. It offers various pricing options and opportunities for expansion.

• Device Agnostic: The POS isn't tethered to a counter – it is wherever you and your sales staff are. The POS even works at trade shows. You can sell your entire product range at exhibitions because you can easily create online orders with the POS.

• Cost: The cost of Shopify POS ranges from zero to 89 euros per month per location. There can be an unlimited number of payment terminals, or POS apps, in use at a single location. The POS application itself is free.

Checkout Everywhere – The Symbiosis is Here

Easy accessibility for customers, optimised space usage, taking advantage of marketing opportunities while queuing, and general supervision are some traditional reasons why checkouts are almost always located near the entrance in stores.

However, the world is changing rapidly, so could now be the right time to challenge the old, fixed cash register and advisory practices? What if the checkout could be right where your customers currently are? What if each shop salesperson could carry their own checkout? Could customers be easily identified at the sales stage before checkout and offer them highly personalised service?

Symbioses come in many forms: those between plants and insects, animals, microorganisms, and even humans and bacteria. Shopify POS is a symbiosis in commerce, bridging your physical store and online business: with Shopify POS, you provide a better customer experience and truly realise your omnichannel strategy.

Interested? Would you like to know more about the benefits and functionalities of Shopify POS? Get in touch!