Retail POS Software Trends for Small Businesses in 2023

Posted by Ved Krishna Dwivedi Date Posted: 24th Jul 2023

The significance and indispensability of point of sale (POS) software in the modern-day business landscape has reached unprecedented levels. While businesses are focusing on optimising their operations and elevating customer experiences, this cutting-edge technology has emerged as an integral pillar of their success. Implementing point of sale (POS) software empowers businesses to conduct transactions promptly and with utmost accuracy, streamlining sales processes to cater to the demands of modern-day consumers. Aside from facilitating transactions, these advanced systems offer a centralised platform for inventory management, providing real-time insights into stock levels, enabling timely reordering, and ultimately fostering data-based decision-making. The invaluable data generated by POS systems grants businesses a competitive edge, illuminating critical insights into consumer preferences, sales patterns, and overall performance. This data-driven approach empowers enterprises to tailor strategies that resonate with their target audience, propelling their growth and profitability to new heights.

Purchasing the right point of sale (POS) software to complement your point of sale (POS) system and support your business requirements perfectly requires thorough research. To assist you with your research process, we at POS Sales Australia have outlined this comprehensive guide.

Skim through it and make an informed decision.

Let’s begin!

What is a Point of Sale (POS) Software?

Point of sale (POS) software is a sophisticated and versatile technological solution designed to streamline and facilitate retail transactions, for example, Square POS, Vend POS, Shopify POS, and more. At its core, point of sale (POS) software serves as a comprehensive platform that enables businesses to process sales swiftly, accurately, and efficiently. It encompasses a wide array of features, including barcode scanning, inventory management, sales tracking, and payment processing. With user-friendly interfaces, this software empowers sales staff to swiftly process customer purchases, calculate totals, apply discounts, and generate detailed receipts. Moreover, point of sale (POS) software is integral to inventory management, providing real-time insights into stock levels, allowing businesses to manage their supplies effectively, and triggering timely reorder alerts. The data collected by point of sale (POS) systems also offer valuable analytics, illuminating sales patterns, customer preferences, and overall business performance, aiding in making data-driven decisions to boost profitability and enhance customer experiences. Ultimately, point of sale (POS) software is an indispensable tool for modern businesses seeking operational efficiency and improved sales management.

What is the Difference between Point of Sale (POS) Software and Point of Sale (POS) System?

The terms point of sale (POS) software and point of sale (POS) system are often used interchangeably, but they refer to distinct components in the retail and business context. Point of sale (POS) software specifically pertains to the application or program that runs on a computer or device, facilitating various retail functions, such as processing transactions, inventory management, and generating sales reports. It operates within a larger system and relies on hardware like barcode scanners, cash registers, and receipt printers to function optimally.

On the other hand, a point of sale (POS) system encompasses the entire setup, comprising both the software and hardware components (like barcode scanners, receipt printers, payment processors, and more) that collaborate to create a comprehensive retail management solution. It includes the point of sale (POS) software along with the associated devices like cash registers, touch-screen terminals, card readers, and any other peripheral equipment required to facilitate transactions and streamline business operations. The POS system is a holistic approach to managing sales and inventory, providing a seamless and efficient way to conduct business transactions.

In short, the point of sale (POS) software is the software application responsible for managing retail tasks, while the point of sale (POS) system refers to the entire setup that incorporates both the software and the hardware to create a complete retail management solution. Understanding this difference is essential for businesses seeking to implement efficient and effective retail solutions tailored to their specific needs.

What are the Features of Point of Sale (POS) Software?

We have enlisted some of the common features of point of sale (POS) software:

Mobile Checkout: The mobile checkout process of a point of sale (POS) software is a revolutionary means of empowering sales staff to conduct transactions using handheld devices or tablets from anywhere within the store. This feature enhances customer service by reducing waiting times and offering personalised assistance on the sales floor, leaving a positive impression and boosting customer loyalty. It is particularly valuable for pop-up stores and outdoor markets, where traditional cash registers may not be practical. The mobile checkout supports various payment methods and seamlessly syncs with the central POS system, updating inventory in real-time and ensuring efficient sales tracking. Overall, this innovative feature optimises the retail experience, increasing flexibility, and revenue potential while fostering customer satisfaction and business success.

Digital and Printed Receipts: The point of sale (POS) software caters to both digital and printed receipt functionalities, enhancing overall customer experience. With its digital receipt feature, customers can conveniently receive transaction details through email or SMS, promoting eco-friendliness and eliminating the need for paper receipts. This fosters a modern and sustainable approach to retail transactions, aligning with current environmental concerns. Additionally, digital receipts can be easily accessed and stored by customers, ensuring hassle-free returns and exchanges. On the other hand, the software's printed receipt feature allows for the traditional approach, catering to customers who prefer physical copies for record-keeping or reimbursement purposes. This versatility ensures that every customer's preference is met, ultimately promoting customer satisfaction and reinforcing brand loyalty. The integration of both digital and printed receipts within the POS software represents a well-rounded and adaptable solution for modern businesses, streamlining operations and promoting a more environmentally conscious retail landscape.

Centralised Inventory Control: The point of sale (POS) software optimises and streamlines inventory management for businesses. This feature allows businesses to maintain a centralised database that efficiently tracks, and updates stock levels across all outlets and warehouses in real-time. This ensures accurate and up-to-date information, enabling businesses to avoid stockouts or overstocking, thereby reducing operational costs and enhancing overall efficiency. Through the centralised system, businesses gain valuable insights into their inventory trends, allowing for data-driven decision-making and improved forecasting accuracy. Moreover, this feature facilitates seamless coordination among various branches, enabling effortless transfers of stock between locations as needed, further reducing stock imbalances and improving customer service.

Streamlined Payment Processing: This robust and efficient solution is designed to enhance the payment experience for both customers and businesses. By integrating with various payment methods, such as credit cards, debit cards, mobile wallets, and contactless payments, the POS software simplifies the transaction process, reducing waiting times and minimising the chances of human errors. This feature also ensures the security of sensitive financial data through encryption and compliance with industry standards, fostering trust and confidence among customers. For businesses, the streamlined payment processing feature accelerates cash flow and enables swift reconciliation of transactions, improving overall financial management. Moreover, with the ability to generate comprehensive reports on sales and revenue, businesses can gain valuable insights into their financial performance, aiding in strategic decision-making and growth planning.

Comprehensive Reporting and Analytics: Businesses can access a wide array of reports and analytics, ranging from sales trends, inventory levels, and employee performance to customer behaviour and profitability analysis. The reports are presented clearly and intuitively, making it easy for business owners and managers to grasp critical information at a glance. By harnessing this feature, businesses can identify top-selling products, peak sales periods, and slow-moving items, enabling them to optimise inventory management and marketing strategies. Additionally, the analysis provides a deeper understanding of customer preferences, enabling targeted promotions and personalised marketing initiatives. This comprehensive reporting and analysis feature not only enhance operational efficiency but also facilitates strategic planning and growth.

Enhanced Customer Relationship Management: The right point of sale (POS) software acts as a pivotal tool that strengthens the bond between businesses and their customers, fostering loyalty and long-term success. This feature consolidates and organises customer data, including purchase history, preferences, and contact information, in a centralised database. With this wealth of information at their disposal, businesses can gain a deeper understanding of individual customer needs, enabling them to offer personalised promotions, discounts, and rewards. Through targeted marketing campaigns, businesses can engage with customers through various channels, such as email, SMS, or loyalty programs, nurturing lasting relationships and encouraging repeat visits. Furthermore, the software's integration with customer feedback mechanisms facilitates prompt responses to queries, concerns, and feedback, demonstrating a commitment to excellent customer service.

Efficient Workforce Management: Point of sale (POS) software helps with optimising staff and boosts productivity within businesses. It helps streamline the workforce management process by offering comprehensive tools for employee scheduling, time tracking, and performance analysis. Business owners and managers can create well-organised schedules that align with peak business hours and demand, ensuring adequate staffing levels while reducing unnecessary labour costs. The time tracking functionality accurately records employee work hours, simplifying payroll processes and promoting transparency. Moreover, the software's performance analysis capabilities allow businesses to assess employee productivity and identify areas for improvement, enabling targeted training and incentives. The efficient workforce management feature fosters a harmonious work environment, reducing employee turnover and enhancing overall operational efficiency.

Customisable Order Fulfilment Options: The customisable order fulfilment option of a point of sale (POS) Software refers to a flexible and adaptable system that empowers businesses to tailor their order processing workflows to meet specific requirements and preferences. With this feature, businesses can define and configure various order fulfilment methods, such as in-store pickup, local delivery, or shipment from a central warehouse. The software allows for seamless integration with third-party logistics providers, enabling efficient order tracking and delivery status updates. Moreover, businesses can set custom rules for inventory allocation and fulfilment prioritisation, ensuring that orders are processed optimally based on factors like stock availability and proximity to the customer. This level of customisation enhances operational efficiency, streamlines order processing, and contributes to an exceptional customer experience, making it an indispensable tool for businesses seeking to adapt and thrive in a rapidly evolving market.

Versatile Gift Cards for Online and Physical Stores: POS Software offers a flexible and convenient solution that caters to both online and physical stores, providing businesses with a unified gift card system. This feature allows customers to purchase gift cards from either the online platform or in-store, and the gift card balances are seamlessly synchronised across both channels. Customers can easily redeem their gift cards for purchases either online or in-person, enhancing the shopping experience and promoting brand loyalty. Additionally, businesses can personalise gift cards with custom designs and messages, making them an attractive and impactful marketing tool. The software's robust tracking capabilities enable businesses to monitor gift card transactions, ensuring accurate balance management and minimising the risk of fraud. The versatility of this gift card feature not only simplifies gift-giving for customers but also empowers businesses to boost sales, attract new customers, and strengthen their brand presence across both digital and brick-and-mortar platforms.

What are the Top 5 Point of Sale (POS) Software in Australia?

Vend POS: Easy to set up and use, Vend is a cloud-based software that allows you to access reports, inventory, and other features from your phone, tablet, or laptop, without you being physically present. Vend is available in three fixed-price tiers - Lean, Standard, and Advanced, priced at $79, $129, and $199 per month, respectively, for an annual subscription. These rates cover the setup of Vend in a single location, and for each additional location where implementation is desired, the charge will be applied anew. It can be integrated with third-party apps like Xero and Mailchimp; and offers 24/7 global support.

Square POS: Perfect for small businesses, Square provides a complimentary POS system equipped with a website builder, checkout tools, and sales reports. Moreover, their Square for Retail version caters to businesses seeking enhanced and top-notch retail POS capabilities. This service includes vendor sales reports, an inventory counting tool, and intelligent stock forecasts, making it ideal for retail businesses that are either expanding or aspiring to scale up their operations.

Shopify POS: Shopify is renowned for its e-commerce platform tailored for running online stores. However, it also provides a POS system, enabling seamless integration between the two platforms. This integration facilitates efficient tracking and management of inventory and orders, offering a cohesive and comprehensive solution for businesses operating both online and in physical locations. Shopify POS is ideal for individuals seeking to establish an online presence for their business or those who already operate an online store through Shopify. This is particularly advantageous as the Lite plan of Shopify POS already encompasses three out of four paid plans offered by Shopify, which are Basic, Shopify, and Advanced priced at $45/month, $123/month, and $464/month, respectively. Moreover, Shopify POS offers a top-tier option called Pro, which incurs an additional cost of $138/month per location, in addition to your selected Shopify plan.

TouchBistro: Designed specifically for the hospitality sector, TouchBistro incorporates tailored features that cater to this industry, making it one of the best-suited solutions for serving the Australian market. With offline functionality, TouchBistro empowers businesses to offer mobile and pay-at-table options, ensuring customers experience a more convenient and efficient payment process. Although TouchBistro lacks a free trial option, it remains a viable choice for discerning buyers. Starting at $106/month, the system allows customisability through add-on features, enabling the creation of a comprehensive restaurant management system that precisely addresses individual needs.

Lightspeed: Lightspeed offers tailored solutions for both retail and hospitality businesses, with distinct features catering to each industry. For retail, Lightspeed provides comprehensive inventory management tools, enabling efficient tracking of items across multiple locations and setting up notifications for timely reordering when stock levels are low. These advanced capabilities make it particularly well-suited for larger enterprises or businesses with multiple outlets. Additionally, Lightspeed incorporates an integrated CRM (customer relationship management) system, empowering businesses to nurture stronger connections with their clientele. In the hospitality realm, Lightspeed Hospitality offers three paid tiers - Starter, Essential, and Premium, priced at $79, $179, and $359 per month, respectively. Although neither version of Lightspeed includes hardware by default, it can seamlessly run on various platforms such as iOS, Android, Windows, or mixed setups, ensuring flexibility and accessibility for businesses of diverse technological preferences.

What are the Top Retail POS Software Trends for Small Businesses?

Cloud-based POS Solutions: Cloud-based POS software is gaining momentum as an efficient and cost-effective option for small businesses. These solutions offer real-time data access from any device with an internet connection, empowering retailers to manage inventory, sales, and customer information effortlessly. With easy scalability and automatic updates, cloud-based POS software ensures seamless operations and reduces the burden of on-premises maintenance.

Contactless Payments: With the ongoing focus on health and hygiene, contactless payments have become an essential feature for retailers. POS software supporting contactless payment options, such as mobile wallets and NFC technology, not only caters to customer preferences but also enhances transaction speed and security.

Omnichannel Integration: Small businesses are recognising the importance of providing a seamless shopping experience across multiple channels. POS software that integrates with online platforms, in-store sales, and mobile applications enables consistent inventory management and order fulfilment, fostering customer loyalty and satisfaction.

AI and Data Analytics: Artificial Intelligence (AI) and data analytics are revolutionising retail operations. POS software equipped with AI-driven insights can help small businesses optimise inventory levels, personalise marketing strategies, and forecast demand accurately. The ability to leverage data-driven decision-making empowers retailers to make informed choices that positively impact their bottom line.

Personalised Customer Experiences: Customers today expect personalised interactions with retailers. In 2023, POS software will offer more sophisticated CRM capabilities, allowing small businesses to capture and analyse customer data to deliver tailored promotions, loyalty rewards, and personalised recommendations, ultimately boosting customer retention and engagement.

Enhanced Security Features: Cybersecurity remains a top concern for retailers. POS software providers are focusing on enhancing security measures to protect sensitive customer data and payment information. End-to-end encryption, tokenisation, and multi-factor authentication are some of the advanced security features that will become increasingly prevalent in retail POS solutions.

Inventory Automation: Small businesses often struggle with inventory management, but advanced POS software will address this challenge through automation. AI-powered algorithms can help predict stock levels, automate replenishment orders, and manage supplier relationships efficiently, reducing inventory holding costs and preventing stockouts.

Mobile POS Solutions: Mobile POS solutions are gaining popularity due to their flexibility and convenience. Small businesses can leverage smartphones or tablets as portable POS systems, enabling them to process transactions anywhere in the store, conduct pop-up events, or serve customers in queues during peak hours.

Subscription-Based POS Software: In response to varying business needs, subscription-based models for POS software are gaining popularity. This allows small businesses to select features that align with their specific requirements, providing greater flexibility and cost-effectiveness.

Integrated Loyalty Programs: POS software with built-in loyalty program integration enables small businesses to reward and incentivise repeat customers seamlessly. Customisable loyalty schemes and automatic point accruals can drive customer engagement and boost brand loyalty.

Mobile Wallet Integration: As mobile payments continue to rise, POS software supporting mobile wallet integration, such as Apple Pay and Google Pay, will become increasingly crucial for small businesses to cater to the preferences of tech-savvy consumers.

Customer Feedback and Reviews: POS software with integrated customer feedback and review features can empower small businesses to collect valuable insights directly from customers. Utilising this feedback for continuous improvement can lead to higher customer satisfaction and loyalty.

Offline Mode Reliability: Reliable offline mode capabilities are essential for small businesses, especially in areas with unstable internet connectivity. POS software that can seamlessly process transactions and sync data once online will be highly sought after in 2023.

Multi-Language and Multi-Currency Support: As businesses expand globally, POS software with multi-language and multi-currency capabilities will become indispensable. This feature ensures smooth transactions for international customers and facilitates smoother operations for businesses operating in diverse markets.

Augmented Reality (AR) Integration: Some forward-thinking POS software providers are exploring AR integration to enhance the shopping experience. AR features can allow customers to virtually try on products, visualise furniture placement, or even view digital menus in restaurants.

Sustainability and Eco-Friendly Features: In line with growing environmental consciousness, POS software that incorporates sustainability-focused features, such as paperless receipts and green packaging options, can attract eco-conscious consumers and align with a brand's values.

Third-Party Integrations: POS software that offers seamless integrations with third-party applications, such as accounting software, marketing platforms, or e-commerce platforms, can further streamline business operations and data management.

Employee Management Tools: Small businesses can benefit from POS software with employee management functionalities, such as shift scheduling, performance tracking, and commission management, to efficiently manage their workforce and improve staff productivity.

Real-Time Analytics and Reporting: Access to real-time analytics and reporting empowers small businesses to make data-driven decisions swiftly. POS software that offers comprehensive reporting dashboards and performance analytics can help retailers monitor key metrics and identify growth opportunities.

Voice Command Integration: With the rise of voice-activated devices, POS software incorporating voice command integration can provide a convenient and hands-free way for employees to execute tasks, increasing operational efficiency and customer service quality.

Wrapping Up,

If you have decided which point of sale (POS) software to pick that would meet your business requirements perfectly, all you need is the point of sale (POS) bundle comprising compatible hardware, consumables, and accessories to complement your point of sale (POS) software.

POS Sales Australia’s expansive range of point of sale bundles, hardware, accessories, and consumables are all available at competitive prices. Browse through our inventory to buy the perfect POS bundle for your business needs.

If you require personalised shopping assistance regarding your purchase, or you are still unsure about the point of sale (POS) software that would meet your business needs perfectly, get in touch with us and our experts will help you make an informed decision.

For any inquiries, reach out to us! Contact our POS expert at 1300 026 062