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Point of Sale systems, or a POS system for retail, are an integral part of any business. They are what allow customers to complete their transactions for the goods or services they purchased from your company. But what are they, and why are they so important?
Choosing the right POS system for your retail business isn’t just about processing payments — it’s about managing sales, tracking inventory in real time, and delivering a smoother experience for both staff and customers. Whether you run a boutique, electronics store, or pop-up shop, the best retail POS systems give you the tools to operate smarter, sell faster, and scale confidently. In this guide, we’ll walk you through what to look for, key features to prioritize, and how to avoid common mistakes when choosing a new POS system.
Why retail businesses need a POS system
Gone are the days of basic cash registers and manual spreadsheets. Today’s retail POS systems let you do much more than ring up sales, they help you run your entire business.
With the right POS system, you can:
- Track inventory in real time
- Automate low-stock alerts and reorders
- View sales reports by time, category, or staff member
- Manage employees, tips, and shift schedules
- Collect and use customer data to drive loyalty
Whether managing one store or several, a good POS system gives you the tools to grow, not just get by.
Top POS systems for retail businesses in 2025
Looking for a shortcut? Here are some of the most recommended systems for retail businesses this year:
Must-have retail POS Features
The best POS systems for retail combine ease of use with serious functionality. Here are the key features to look for:
Sales History
A good retail POS keeps your sales data up to date automatically, so you can see what’s selling, spot trends, and reorder stock before you run out. Simply by looking at the records, you’ll be able to determine what action the sales and marketing teams can take to further (or better) market the goods or services you’re selling. Moreover, this feature gives a clear picture of the inventory that’s currently stored and when you’re running low. Traditional cash registers don’t allow for this type of analysis at a glance.
Inventory management
Your POS should update inventory automatically with every sale and return. Look for tools that let you:
- Track stock by size, color, or variant
- Receive low-stock alerts
- Manage multiple locations from one dashboard
Our top picks for June 2025
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Inventory management
Customer relationship tools
Collect emails, offer loyalty rewards, track purchase history, and use that data to send personalized offers or follow-ups.
Promotions and targeted marketing
A retail POS can go a long way to promoting your product or service. For example, you’ll be able to collect data like customer birthdays and email addresses, which allows you to send special offers or discounts on those special days. In addition to making your customers feel valued, it can help boost your sales. This data can be integrated with loyalty tools. These features ensure that your clients keep returning time and time again.
Mobile & compact hardware
Modern POS setups run on tablets or compact terminals. They save space, reduce clutter, and often cost less than traditional registers.
Cloud access and integrations
Access your sales data from anywhere and sync easily with tools like QuickBooks, Shopify, or your online store.
Greater customer interaction
Top retail POS systems increase the ability of businesses to interact with customers. Businesses are built on customer interactions, and the relationship between a business and its customers plays a great role in the success (or not) of a company. With retail POS, it’s possible to maintain interactions with customers long after the purchase is made, thereby increasing branding as well.
Hardware for retail POS systems
Retail POS system hardware is just as important as the POS retail software. The two work together to allow the system to run smoothly. After all, your software could be on point, but if your computer or scanner isn’t functioning, the point of sale system software is of little use. To get the most out of your retail POS system, here’s the hardware you should be looking for:
Register screen
This is the visual front of your top POS system. The screen displays information about the transaction, customer data, databases, etc. The register screen is an essential component of the retail POS and is generally either a slim computer monitor or a mobile device, like an iPad. Earlier systems used bulky monitors.
Barcode scanner
A barcode scanner scans the barcode printed on the product and adds its details and price to the transaction. It also ensures that the inventory is correctly maintained and managed after the transaction is completed.
Receipt printer
Receipts show customers exactly what was billed and how much they paid for each product or service they purchased. They also contain other information, like the date and location of the purchase. The receipt printer is what allows you to print out a paper receipt for the customer. While many businesses now offer email or text receipts, some customers still prefer something tangible, so a receipt printer is an important piece of hardware to have as part of your retail pos.
Cash drawer
The cash drawer is, of course, where the cash is kept. It’s a secure drawer that generally opens only once a transaction is complete, but can be configured on many cloud based POS systems for retail.
Card reader
Though not a mandatory component of a retail POS system, having a card reader allows businesses to accept payments from credit and debit cards. Some card readers also accept mobile payments for the goods or services purchased.
What to consider before choosing a retail POS system
Shifting to a new POS system can be a great option for increasing sales and creating a more efficient transaction experience for customers. However, as you prepare to make the jump to a new point of sale system, there are a few important things to consider to ensure you get the best pos system for retail stores.
Business requirements
Before you do anything else, it’s critical that you identify your business requirements. This sets the basis for everything else. To find the best retail POS system for your needs, start by making a list of the non-negotiable features that your business can’t live without. If you find that your requirements are minimal and can be managed with a simple cash register, then perhaps reconsider your desire to switch to a POS system, as it may not be necessary. However, if you have many requirements that cannot be met by a cash register, a POS system is likely the best option.
Fees
Processing fees for credit and debit cards can be high, and the cost for this usually falls on business owners. Look for retail POS software that offers low processing fees, or even free retail POS software.
Complexity
When you’re selecting a system, remember that your employees need to learn to use it. The best retail POS software is intuitive and quick for employees to pick up on. Choosing a point of sale system that’s difficult to operate means that you’ll need to spend additional time and resources teaching everyone how to use it. Remember, too, that the system must be updated regularly to maintain its functionality.
Integration
It’s important that the POS software you choose can easily integrate with the existing software your company uses. Failing to consider this while purchasing your new system can lead to unnecessary technology problems and headaches for everyone involved. Many of today’s top POS software options integrate with a lot of popular business tools, such as Quickbooks, BigCommerce, Magneto, Apple Pay, and more.
Security
Finally, you’ll want to consider security, both for your sake and for the sake of your customers. The best retail POS systems protect your customers’ information and offer excellent technical support to solve any issues that might occur.
Frequently Asked Questions
Q. What is a POS system for retail?
A. A POS (Point of Sale) system is a combination of software and hardware that allows retail businesses to complete sales, manage inventory, track performance, and store customer data. It replaces traditional cash registers with smarter, more connected tools.
Q. How much does a retail POS system cost?
A. Retail POS systems range from free to several hundred dollars per month, depending on the provider, features, and hardware setup. Some offer basic plans with low transaction fees, while others include advanced tools like inventory syncing and eCommerce integration.
Q. Can a POS system track inventory in real time?
A. Yes — most modern POS systems automatically update inventory with every sale, return, or stock intake. This helps retailers avoid overselling, spot trends, and plan reorders more accurately.
Q. What’s the difference between a POS for retail and one for restaurants?
A. Retail POS systems focus on inventory, SKUs, barcodes, and product variants (like size and color). Restaurant POS systems prioritize table management, menu modifiers, and tipping. Some platforms, like Lightspeed or Square, offer versions tailored for each.
Q. Can I use a tablet or phone as my POS?
A. Yes, many systems like Square or Lightspeed Retail support iPads or Android tablets. This gives small retailers a flexible, affordable setup without needing bulky hardware.
