Last Updated on August 7, 2024 by Guest
With the right investment into emerging technologies, such as an electric point-of-sale (EPOS) system, retail startups can achieve success in an exciting and growing industry.
As a startup joining a competitive landscape, there is no point investing in a traditional POS system that only accepts cash payments, debit cards, and credit card payments when more flexible payment options are available for your customers via an EPOS system.
However, we note that EPOS systems are costly compared to a traditional cash register, so we’re here to convince you that, despite the up-front costs, you should invest and reap the plethora of long-term benefits.
In this article, we take a look at six benefits of an EPOS system for startups and a few providers in which they could invest.
What is an EPOS System?
An EPOS system is a combination of software and hardware designed to go beyond the functions of a traditional cash register by automating and enhancing the sales process.
The hardware of your EPOS system can consist of a portable card reader, a barcode scanner, a bluetooth receipt printer, a cash drawer, and a touchscreen terminal. These pieces of hardware are mainly used to accept payments, including flexible options such as QR codes and splitting the bill.
However, EPOS systems can also manage sales and retail inventory, gather customer data, and integrate with other business systems such as accounting, CRM, and eCommerce.
Different EPOS systems cater to distinct business needs. For example, restaurants may require table management and split-the-bill features, while retailers might prioritize inventory tracking and footfall analytics.
6 Benefits of an EPOS System for Your Startup
Consider investing in an EPOS system for your startup to keep up with competitors in the retail space and reap these benefits:
Automated inventory management
An EPOS system will automatically update your inventory levels when an item is sold, either online or in-store. This way, you can see what products need replenishing, eliminating the chances of stockouts, which can impact customer satisfaction.
Some EPOS systems can be synced up to automatically order more stock from your suppliers when inventory is running low. This saves employee time and reduces manual errors when restocking.
In addition, when a customer asks an in-store employee about item availability, an EPOS system can give them instant information about whether the item is in stock and where it is located in the store, saving valuable time searching for products.
Improves decision making
An EPOS system can help improve decision-making by providing easy-to-digest reports and insights.
Sales analytics allow you to identify which products are selling well and which aren’t, so you know which to re-order and which to put on offer to try to sell more of.
While footfall analytics allow you to allocate shifts better. For example, if you usually have all your staff working on a Saturday night, but analytics show you are busiest before lunchtime, then you know you need more staff on the morning shift and less on the evening shift.
Improved decision-making in these areas maximizes both profit and efficiency for your startup.
Saves time
An EPOS system automates tasks that an employee used to be required to do, saving them time to focus on tasks that can’t be automated. This allows for improved performance and startup growth.
Reduces human error
As a startup owner, even small employee mistakes can break the bank. Luckily, an EPOS system minimizes the risk of human error by automating employee tasks.
Firstly, it eliminates mistakes in manual stock counts. In addition, it reduces pricing mistakes because all prices, product discounts, and bundle promotions are entered into the retail EPOS system and updated instantly.
Increased customer satisfaction
Speed and ease of payment has always been a high priority for customers. Luckily, EPOS systems are reliable, fast, and easy to use, so customers are satisfied when they head to the checkout and engage with staff.
In addition, most EPOS systems will integrate with your online store, so when you sell something in-store, your stock level immediately updates across all channels, enhancing the customer experience for those shopping online.
Finally, built-in loyalty schemes also let you reward returning customers both in-store and online, which can increase your profits because over 83% of consumers say belonging to a loyalty program influences their decision to buy from a brand again.
Enhanced marketing campaigns
An EPOS system is able to gather customer data such as email addresses, product preferences, and location so that you can enhance your marketing campaigns.
Your marketing team can then use this customer data to send personalized email marketing campaigns to your customers with local events and upcoming offers relevant to what they’ve previously purchased.
EPOS Service Providers
Epos Now
Epos Now provides payment solutions to small and medium-sized businesses in the retail, hospitality, and personal care sectors. Its hardware includes printers, barcode scanners, a metal cash drawer, a portable card machine, and a touchscreen terminal.
The provider offers a range of features, including employee tools, inventory management tools, sales data, cut-price payment processing fees, and software integrations for eCommerce, marketing, payroll, and more.
Lightspeed
Lightspeed is a POS service provider for retail, hospitality, and golf businesses. Its cloud-based tools allow staff to take payments from anywhere using a mobile device of their choice.
It offers a range of features, including multi-location tools, inventory management tools, fully integrated payments, and real-time sales reporting and insights.
Clover
Clover is a POS provider that allows businesses in the retail and restaurant industry to customize their payment solutions with software, hardware, apps, and accessories that suit their needs.
It offers a range of features, including employee management tools, customer loyalty programs, sales analytics, and the tracking of sales, refunds, and deposits.
Will You Invest?
The major drawback for startup owners is the up-front costs of an EPOS system over a traditional cash register. However, this article explored how an EPOS system will benefit your operations, customers, and sales in the long run.
It’s also important to note that, with the rise of AI in almost every industry, it wouldn’t be surprising if EPOS providers leverage AI in the near future. AI may help startups predict sales trends and invest in the right stock to optimize their profits.