A Comprehensive Guide to Shopify POS System

A Comprehensive Guide to Shopify POS System

Let’s say- you own a small business, like a café or a confectionery. Now, a POS (Point of Sale) system, is basically your biggest support system when it comes to handling transactions. It's like your virtual cash register, but an advanced version. It tracks sales, manages inventory, and even crunches numbers for you. Pretty amazing, right?

But here's the kicker – finding the best POS system can be a bit of a headache. There are about a bazillion options out there, each claiming to be the best thing since sliced bread. So, you start researching, comparing features, prices, customer reviews – the whole process. And just when you think you've found the one, another contender pops up, leaving you scratching your head all over again. It's like trying to choose between a hundred flavours of ice cream when all you really want is a scoop of good ol' vanilla. But hey, don't sweat it too much- the Shopify POS system is the answer to your search.

This guide is a synopsis of the Shopify POS system where we have tried to cover all the essential pointers that you need to know about this robust point of sale system.

Let’s get started!

Shopify POS System: An Overview

Shopify POS (Point of Sale) System is a comprehensive retail solution offered by Shopify, a leading eCommerce platform. It allows businesses to seamlessly integrate their online and offline sales channels, providing a unified platform for managing transactions, inventory, and customer data.

Let us find out how it came into existence!

Shopify initially launched its POS system in 2013 and targeted small businesses with physical retail locations. The system allowed merchants to accept in-person payments using their smartphones or tablets, revolutionising the traditional point-of-sale experience.

Over the years, Shopify has continuously enhanced its POS capabilities, incorporating advanced features to meet the evolving needs of merchants. These enhancements include support for additional payment methods such as contactless payments and chip cards, as well as integration with various hardware peripherals like barcode scanners and receipt printers.

Furthermore, Shopify has expanded its POS system beyond traditional brick-and-mortar stores to cater to pop-up shops, markets, and even mobile businesses. This flexibility has empowered merchants to sell anywhere, anytime, without being tethered to a fixed location.

In recent years, Shopify has also focused on enhancing the omnichannel experience for merchants, enabling seamless synchronisation of inventory and customer data between online and offline channels. This integration has enabled businesses to provide a unified shopping experience to their customers, whether they're shopping in-store or online.

Interesting, right?

However, do you know what kind of hardware the Shopify POS system uses?

Let’s find out-

Shopify POS Hardware

There’s an array of hardware that comes fully integrated with the Shopify POS system. Here are the commonly used devices-

  • iPad or Tablet: Shopify POS is compatible with iPads and other tablets, serving as the central hub for processing transactions, managing inventory, and accessing customer data. iPads offer a user-friendly interface and portability, making them ideal for mobile and countertop setups.
  • Barcode Scanner: A barcode scanner allows shop owners to quickly and accurately scan product barcodes during checkout, reducing errors and expediting the transaction process. Shopify POS supports various barcode scanners, ranging from handheld devices to integrated scanner stands.
  • Receipt Printer: Receipt printers generate paper receipts for customers after completing a transaction. Shopify POS supports thermal receipt printers, which offer fast printing speeds and high-quality output. These printers can be connected wirelessly or via USB to the iPad or tablet.
  • Card Reader: Card readers enable shop owners to accept credit and debit card payments directly through Shopify POS. Shopify offers its own card reader, the Shopify Tap & Chip Reader, which supports contactless payments, chip cards, and magnetic stripe cards. Additionally, Shopify POS is compatible with other card readers that meet EMV and PCI compliance standards.
  • Barcode Printer: For businesses that need to create and print barcode labels for their products, Shopify POS supports barcode printers. These printers produce adhesive barcode labels that can be affixed to products for easy scanning and inventory management.
  • Display Stand: Display stands or mounts hold the iPad or tablet in place, providing a secure and ergonomic setup for the point-of-sale system. These stands may feature adjustable angles, swivel capabilities, and cable management options to enhance usability and aesthetics.

Did you know that Shopify offers two different versions- Shopify POS Lite and Shopify POS Pro?

Comparing Shopify POS Lite and Shopify POS Pro


  • Shopify POS Lite offers basic features such as accepting payments, managing orders, and tracking inventory.
  • Shopify POS Pro includes advanced features like unlimited staff PINs, advanced inventory management, and customisable smart grids for faster checkout.


  • Shopify POS Lite has limited staff management capabilities, allowing only one staff PIN for accessing the POS system.
  • Shopify POS Pro offers unlimited staff PINs, allowing each staff member to have their own login credentials and access permissions.

Inventory Management

  • Shopify POS Lite provides basic inventory management features, such as tracking stock levels and receiving low-stock alerts.
  • Shopify POS Pro includes advanced inventory management capabilities, such as stock transfers between locations, product matrix (size, colour) tracking, and inventory reporting.


  • Shopify POS Lite has limited customisation options for the checkout process and receipt templates.
  • Shopify POS Pro allows for more customisation, including the ability to create custom payment types, apply automatic discounts, and design personalised receipts with your branding.

Analytics and Reporting

  • Shopify POS Lite offers basic reporting tools, such as sales reports and customer insights.
  • Shopify POS Pro provides more comprehensive analytics and reporting, including detailed sales reports, staff performance metrics, and product performance analysis.

Additional Features

  • Shopify POS Lite does not include some advanced features such as barcode printing, multi-location inventory management, and advanced order fulfilment options.
  • Shopify POS Pro offers additional features like barcode printing, multi-location inventory management, and advanced order fulfilment options, making it suitable for larger or more complex retail businesses.

Cost Estimation for Shopify POS System

Estimating the cost of Shopify POS depends on your chosen Shopify Plan and Shopify POS subscription. However, you should anticipate potential expenses as follows:

  • For Shopify POS Lite: Starting from $1094 per store as a one-time investment, which includes your Shopify subscription and the Shopify POS system.
  • For Shopify POS Pro: Beginning from $2162 per store for the first year. Subsequently, from the second year onward, the cost decreases to $1068 per store for the Shopify POS system.

Note: These estimates may vary for individual merchants, and the initial investment could differ depending on your preferred Shopify POS hardware.

While purchasing any point of sale (POS) system, it is crucial to know what features and benefits it would be offering. This would not only make business operations seamless for store owners but also help customers shop conveniently.

Therefore, in the following section, we have discussed-

  • The features of the Shopify POS system and
  • The benefits of using the Shopify POS system.

Features of the Shopify POS System

  • Inventory Control: Seamlessly manage both in-store and online inventory, monitor stock levels, and receive notifications for low stock. Real-time updates ensure accurate product details and availability.
  • Secure Payment Handling: Accept a variety of payment methods, including credit cards, cash, and digital wallets, with robust security measures in place.
  • Multi-Channel Selling: Shopify POS enables businesses to market their products both in physical stores and online through a single platform, ensuring that inventory and sales data remain synchronised across all channels.
  • Analytics and Insights: Utilise sales reports and analytics to monitor performance, identify trends, and make informed decisions to optimise business operations.
  • Multi-Location Administration: For businesses with multiple physical store locations, Shopify POS facilitates centralised management of inventory, sales, and staff.
  • In-Store Marketing Tools: Utilise Shopify POS for in-store marketing initiatives by showcasing product images, details, and promotions to enhance the shopping experience.
  • Tailored Checkout Experience: Customise the in-store checkout process by adding products, applying discounts, and swiftly processing payments for a seamless and efficient transaction.
  • Offline Functionality: Even without internet connectivity, continue selling with Shopify POS's offline mode, with transactions automatically syncing once back online.
  • Compatible Hardware: Shopify supports a wide range of compatible hardware, such as receipt printers, barcode scanners, cash drawers, and card readers.
  • Customer Profiles: Build and access customer profiles to track purchase history and preferences, enabling personalised interactions and fostering customer loyalty.
  • Custom Receipts: Design and personalise receipts to align with your brand, including your logo and return policy.
  • Customer Loyalty Programs: Establish loyalty programs to incentivise repeat customers with discounts and special offers.
  • Gift Card Management: Sell and redeem gift cards to encourage repeat business and attract new customers.
  • Returns and Exchanges: Effortlessly process returns and exchanges, with the ability to easily search for past orders for streamlined customer service.
  • Multi-Currency Capability: Cater to global customers by selling in multiple currencies and displaying prices in their preferred currency.
  • Sales and Promotions: Create discounts, promotions, and automated discounts based on predefined criteria to drive sales and attract customers.
  • Employee Management: Assign roles and permissions to staff members, granting access to necessary functions while ensuring security.
  • Advanced Tax Handling: Automate complex tax calculations and generate precise tax reports to ensure compliance.

Benefits of the Shopify POS System

If you are a store owner, here’s how you’ll benefit from using Shopify POS system-

  • Unified Management: Shopify POS offers a centralised platform for managing both physical and online stores. This allows shop owners to efficiently oversee inventory, sales, and customer data across all channels, simplifying their operations.
  • Increased Efficiency: The system automates various tasks such as inventory tracking, order processing, and payment handling, saving shop owners time and effort. This efficiency allows them to focus on growing their business rather than getting bogged down in administrative tasks.
  • Enhanced Customer Insights: Shopify POS provides access to comprehensive analytics and reporting tools, allowing shop owners to gain insights into customer behaviour, purchasing patterns, and sales trends. Armed with this data, owners can make informed decisions to optimise their marketing strategies and product offerings.
  • Flexibility and Mobility: With Shopify POS, shop owners can sell anywhere, anytime, whether it's in-store, at a pop-up event, or through a mobile setup. This flexibility enables them to reach customers wherever they are and capitalise on opportunities for sales growth.
  • Customisation and Scalability: Shopify POS is highly customisable and can be tailored to suit the unique needs of each business. As the business grows, the system can easily scale to accommodate additional stores, products, and sales channels, providing flexibility and scalability.
  • Security and Reliability: Shopify prioritises security and reliability, ensuring that customer data and payment information are protected at all times. With robust encryption and regular updates, shop owners can trust that their transactions are secure and their business operations run smoothly.

But, not just shop owners, even customers enjoy multiple benefits of using Shopify POS system. Here are the common ones-

  • Seamless Shopping Experience: Shopify POS provides a seamless shopping experience for customers, whether they're shopping in-store or online. Inventory and product information are synchronised across channels, ensuring consistency and accuracy.
  • Convenient Payment Options: Customers can choose from a variety of payment methods, including credit cards, cash, and digital wallets, making the checkout process quick and convenient.
  • Personalised Service: With access to customer profiles and purchase history, shop owners can provide personalised recommendations and offers based on each customer's preferences and past purchases, enhancing the overall shopping experience.
  • Easy Returns and Exchanges: Shopify POS simplifies the returns and exchanges process for customers, allowing them to easily return or exchange items both in-store and online, if applicable.
  • Access to Loyalty Programs and Discounts: Customers can participate in loyalty programs and redeem discounts and special offers directly through the Shopify POS system, rewarding them for their repeat business and encouraging loyalty.
  • Transparent Pricing and Product Information: Customers can easily view pricing, product details, and availability in-store or online, enabling them to make informed purchasing decisions.

Now that you have an overview of this robust point of sale (POS) system, let us discuss the-

Steps to Setup Shopify POS System

  • Create a Shopify Account: If you haven't already, sign up for a Shopify account. You can choose from various subscription plans based on your business needs.
  • Download Shopify POS App: Install the Shopify POS app on your iPad or tablet from the App Store. The app is available for free and serves as the central hub for managing your retail operations.
  • Connect Hardware: Depending on your setup, connect the necessary hardware components such as barcode scanners, receipt printers, card readers, and cash drawers to your iPad or tablet. Ensure that all hardware is compatible with Shopify POS and properly configured.
  • Set Up Products: Log in to your Shopify account and add your products to the platform. Include product descriptions, prices, variants (such as size or colour), and barcode information. You can also organise products into categories for easier navigation.
  • Configure Inventory: Once your products are added, configure your inventory settings in Shopify POS. Set stock levels, enable inventory tracking, and establish low-stock alerts to help you stay informed about inventory levels.
  • Customise Settings: Customise your Shopify POS settings to align with your business preferences. This includes configuring tax rates, payment options, shipping settings, and receipt templates. You can also set up staff accounts and permissions to control access to certain features.
  • Test Transactions: Before going live, perform test transactions to ensure that all hardware components are working properly and that transactions are processed accurately. This allows you to identify any issues and make adjustments as needed.
  • Train Staff: Train your staff on how to use the Shopify POS app and hardware components effectively. Provide guidance on processing transactions, managing inventory, and providing excellent customer service using the POS system.
  • Sync Online Store: If you have an existing online store on Shopify, ensure that it is synchronised with your Shopify POS system. This allows for seamless integration of inventory, sales data, and customer information across all channels.
  • Launch and Monitor: Once everything is set up and tested, you're ready to launch your Shopify POS system. Monitor transactions, inventory levels, and sales performance closely to identify areas for improvement and optimise your retail operations over time.

Wrapping Up,

With this, we have covered almost everything you need to know about the Shopify POS System. For more information or personalised insights, contact us at POS Sales Australia and speak to our experts.

Or, if you have decided to buy Shopify POS hardware, POS Sales Australia is the answer to your search. Visit our website and shop today!