eCommerce has grown tremendously in recent years, so much so that it’s become a significant part of the global retail framework. And with the ongoing digitalization of modern life, consumers around the world are able to take advantage of the ease of online shopping. Above all, statistics projects that retail e-commerce will keep increasing in the years to come.
This means if you’re in the eCommerce business (or you’re planning to establish one), you need robust systems that drive business efficiency – and this includes your point-of-sale or POS system.
A POS system is a vital hub that brings together sales and payment processes, inventory management, and customer relations. And with advanced functionalities, it can help speed up your operations, streamline manual tasks, and monitor crucial data – all geared towards driving business efficiency, growth, and revenue.
Let’s explore more about why you need an eCommerce POS system.
Why a POS System is Vital for Your eCommerce Business
1. Flexible payment processes
More and more consumers are advocating contactless payment methods for their transactions. In fact, according to data, 56% of eCommerce customers expect flexible payment options when they make purchases. Likewise, 75% of consumers prefer using credit or debit cards.
That’s why if you want to retain people’s business, it’s vital for your eCommerce business to cater to people’s evolving payment processing needs.
Your POS system should allow for smooth integration of different payment processing methods, which will allow you to accommodate customers’ preferred modes of payment. It should also enable you to work on any internet-capable device, take payments over the phone, and set up charge accounts without worries.
Offering a variety of payment processing methods is essential for your business’s growth. Not only does this provide customers the solutions they need, but it also enables you to process payments from anywhere and at any time.
2. Valuable insight into your business and customers
Acquiring and analyzing data, alongside creating comprehensive reports, is crucial in running your eCommerce business. But it can get tedious with a high risk of human error if done manually.
With a multi-function POS system, you automatically monitor trends, track customer purchase patterns, and identify areas of improvement for your business. It allows you to track sales performance, compare sales numbers, monitor issued refunds and discounts, and even identify highly profitable items based on sales volume.
Similarly, it crunches the data on your behalf, stores extensive historical information, and updates in real-time. It also generates easy-to-understand and insightful reports that helps you understand how to better move the lines and deliver customer service so you can adjust accordingly.
Ultimately, having an exceptional POS system helps reveal critical business insights. These then guide you in making informed business decisions that can positively impact your business operations and growth.
3. Easy automation of business tasks
Automation is a great way to ensure your eCommerce brand operates accurately and efficiently.
Beyond payment processing, a robust POS becomes an all-in-one system that integrates your business operations – from accounting and inventory management to payroll and staff scheduling.
It also helps maximize vital man hours by automating tedious tasks. Instead of doing things manually, you can easily:
- Accept signatures electronically.
- Build staff schedules, manage employee hours, and sync payroll.
- Create recurring billing plans, set-up fees, and edit plans in use virtually.
- Purchase and receive inventory.
- Send invoices and receipts electronically.
More importantly, a good POS system should be easy to learn and navigate – whether you’re a newbie or a seasoned staff member. This helps ensure that you (or your team) can easily get up to speed and continue running your business smoothly, without having to worry about the minute details.
4. Customer relationships and loyalty
Building connections and fostering relationships with your customers is key to your eCommerce business’s success. One way to do this is by making them feel acknowledged, valued, and rewarded for their patronage through gift cards, loyalty programs, and other customer engagement efforts.
Here are some examples of excellent loyalty programs:
- Discounts or Freebies – Give customers access to enticing offers of your products or services.
- Memberships – Though often paid, this provides repeat customers with exclusive offers and benefits.
- Point system – For every transaction or amount spent, the customers get a corresponding point amount that can be used as cash, unlock freebies, or access additional services.
Having a solid POS system provides you with all the consumer information to implement this smoothly. For instance, you can give new shoppers a discount code on their first purchase, offer members reduced prices, or enable shoppers to accumulate points for perks.
Taking this further, a POS system gives you access to customer information, purchase history, and other details that help you understand their purchase habits and preferences. You may even use this to anticipate their interests and provide personalized marketing efforts – all based on their previous purchases.
Essentially, rewarding your customers and personalizing your marketing messages help strengthen consumer relationships, encouraging them to continue supporting your business.
5. Efficient inventory management
Inventory management is one of the most tedious, at times even complicated, parts of eCommerce. Luckily, a capable POS system can take away the complexity of these business operations.
Your software should be able to:
- Automatically track sales and update stock levels.
- Easily monitor disparities between sales and inventory reports.
- Develop inventory reports that show essential data (stock-on-hand, products due for re-ordering, or how much you’ve paid suppliers).
- Generate automatic purchase orders and online ordering channels.
- Keep data synced on both the front and back ends.
- Set low-stock or overstock alerts.
Having a robust POS system helps you save time, manpower, and resources. It minimizes the need for inventory checks and manual labor and reduces the risk of human error. And when utilized correctly, it enables you to make smart inventory decisions and save money in the long run.
6. Increased revenue and profitability
A lot of eCommerce businesses lose money due to inefficient processes – whether on their inventory, customers, or day-to-day operations.
With a POS software, you get real-time data on all important business information. This helps reduce your operational costs, generate savings, reallocate these for other needs, or even acquire additional profit. And because it improves the overall customer experience, your POS system can create a number of revenue streams for your business, all driving profitability.
It also streamlines all the manual labor, so you (and your employees) can focus on what’s important – the bottom line.
Ultimately, a POS system helps improve your eCommerce brand’s efficiency and productivity – all of which can help drive success and scalability. And when things start expanding for your business, you’ll get even more laser-focused to ensure that you keep operating at your best.
Are you ready to take your eCommerce business to the next level? True POS is here to help! We are your one-stop hub for all your POS needs. We offer top-of-the-line payment solutions and provide excellent customer support – from setup to maintenance. Plus, we can personalize our solutions based on your business’s needs to ensure that it runs as smoothly as possible. Get your free quote today and let’s scale your business together.