5 Best POS Systems Specialized for Small Business

Key takeaways

• Shopify: Best for overall cost-effectiveness.
• Square: Best for businesses seeking mobility.
• Toast: Best for the restaurant industry.
• Lightspeed: Best for inventory-intensive businesses.
• PayPal Zettle: Best for a user-friendly mobile point-of-sale solution.

How To Choose The Best Pos Systems For Small Business

Here’s a definitive guide on selecting the right POS system for your small business.

Functionality and Features

The first thing you should look for in a POS system is the range of features it provides. Ideally, your POS system should be capable of:

• Tracking sales and inventory in real-time
• Managing customer relationships and loyalty programs
• Offering detailed business reports and analytics
• Handling employee management

Ensure the POS system has the functionality you need now and those you might need as your business grows.

Ease of Use

A POS system is an everyday tool for your business, so it should be intuitive and easy to use. The system you choose should have a user-friendly interface that requires minimal training time for you and your staff. Remember, time spent grappling with a complicated system is time taken away from serving your customers.

Scalability

As small business owners, you aim to grow, and your POS system should be able to scale up with you. Therefore, checking whether the POS system can accommodate more registers, staff members, or additional inventory items is essential as your business scales up. Choosing a POS system that grows with your business can save you the cost and hassle of switching systems down the line.

Integration Capabilities

In today’s digital era, your POS system should integrate seamlessly with other tools you use—such as eCommerce platforms, accounting software, email marketing tools, and more. This allows for efficient data transfer between systems, providing invaluable insights about your business.

Payment Options

Your customers may use various payment methods, including credit cards, debit cards, mobile payments, and digital wallets. Your POS system should support all these methods, ensuring a smooth and convenient checkout experience for your customers.

Cost Considerations

While the quality of the POS system should be your main concern, cost is still a factor. You should consider the upfront costs ( hardware and installation) and ongoing costs (like monthly subscription and transaction fees). Be aware of potential hidden fees like payment processing or contract termination fees.

Customer Support

A good POS system should come with excellent customer support. This could include 24/7 support, live chat, email support, and a comprehensive resource center with guides and tutorials. You never know when you might need assistance, and having a reliable support system in place can make all the difference.

5 Best POS Systems for Small Business

Shopify POS

Shopify POS is a cutting-edge point-of-sale system that flawlessly integrates your in-store and online sales. It provides an all-in-one platform to manage inventory, customer profiles, and sales trends, letting you focus on what matters most: growing your business.

Pricing

Shopify offers 2 POS plans: ‘Shopify POS Lite’ and ‘Shopify POS Pro’. While the POS Lite comes bundled with all Shopify pricing plans, the POS Pro is an optional add-on to the package that unlocks extra point-of-sale features.

In addition, transaction fees and credit card processing charges are levied on all in-person sales. The rate of these fees fluctuates depending on the specific Shopify plan and the payment gateway you rely on.

Moreover, there are costs associated with point-of-sale hardware such as card readers, cash drawers, and receipt printers. These expenses will differ based on the supplier you select for your hardware needs.

Key Features

Shopify POS is packed with features designed to simplify operations and boost efficiency, providing small business owners with more time to focus on growth.

• Omnichannel Capabilities: Shopify POS allows you to synchronize your online and physical store seamlessly, providing real-time inventory updates and reducing discrepancies. This enables small businesses to provide a cohesive shopping experience, which is essential in today’s customer-centric market.
• Powerful Inventory Management: Effective stock management can be a determining factor between financial gain and loss for a small business. Shopify POS makes this easy, allowing automatic reorder triggers and simplifying stock management.
• Customer Profiles: Building strong customer relationships is crucial for small businesses. The POS software helps you achieve this by tracking customer shopping habits, allowing for personalized marketing and customer service.
• Efficient Checkout Process: Streamline your checkout process with flexible options such as split tenders, discounts, and custom payment methods, helping small businesses provide a smooth and personalized shopping experience.

Pros and Cons

Pros

• Omnichannel Excellence: Integrating in-store and online operations is a game-changer for small businesses, enabling a seamless customer experience.
• User-Friendly: An intuitive interface means quick onboarding for staff and less time spent on technicalities.
• Reliable Customer Support: Shopify’s 24/7 support ensures that help is always available when needed, reducing potential downtime.

Cons

• Limited Customization: While Shopify POS software is feature-rich, customization options can be limited compared to other systems.

Customer Support

Shopify excels in customer support, with their team available 24/7 via phone, email, or live chat. The Shopify Help Center is a treasure trove of guides, tutorials, and forums that can help you solve common issues, minimize disruptions, and help you maximize system usage.

Best For Who?

Shopify POS can cater to many businesses. However, it’s a particularly excellent fit for small to medium-sized businesses that operate both a physical store and an online platform. Retail businesses such as fashion, beauty, home goods, electronics, and more can benefit significantly from its omnichannel capabilities.

Square POS

Square POS is a user-friendly point-of-sale solution designed to simplify sales, inventory management, and customer relations for businesses. It is among the leaders in the POS market, renowned for its clear pricing structure and robust functionality.

Pricing

Square POS offers a transparent pricing model with no hidden fees, which is a breath of fresh air in the industry. Here’s what to expect:

• Square for Retail (Free): Square offers a free version of its POS system, a feature that may entice fledgling businesses. It includes inventory tracking, customer profiles, and more.
• Square for Retail (Plus): This version is available from $29 per month per location and includes features like purchase orders, vendor management, and multi-location inventory tracking.
• Transaction Fees: Square charges a flat rate of 2.6% + 10¢ for each tapped, dipped, or swiped payment.
• Hardware Costs: Hardware costs can vary, with the Square Stand available at $149 and the Square Register at $799. Keep in mind that you have the option to bring your own iPad to use with Square Stand.

Key Features

Square POS offers several key features to support the efficiency of your small business operations:

• Inventory Management: Track inventory in real-time, organize items by category, and receive stock alerts.
• Customer Management: Create customer profiles, manage a directory, and track customer interactions.
• Data Analytics: Get insights into your sales trends, best-selling items, and customer spending habits.
• Integrated Payments: Accept payments of all kinds, including mobile payments, from your POS system.

Pros and Cons

Pros

• Transparent Pricing: You always know what you’ll pay with Square, a significant advantage for small businesses operating on tight budgets.
• User-friendly: The system is intuitive and easy to navigate, reducing the learning curve.
• Robust Reporting: You can access detailed reports to gain valuable insights into your business performance.

Cons

• Limited Customization: Unlike some of its competitors, Square POS doesn’t offer extensive customization options.
• Additional Features at Extra Cost: While the base system of this POS software is comprehensive, some advanced features come at an extra cost.

Customer Support

Square provides reliable customer support via phone, email, and live chat from 6 a.m. to 6 p.m. PST. They also offer a comprehensive online help center full of guides and FAQs.

Best For Who?

Square POS is an excellent fit for small retail and food and beverage businesses, particularly those with a single location or several outlets. However, when considering businesses that operate both online and in physical stores, it may not provide the same level of integration and functionality as some alternatives.

Toast POS

Toast POS is a restaurant-oriented point-of-sale and management system that aims to streamline operations, from menu management to employee scheduling, inventory management and tracking, and customer relationship management.

Pricing

Toast offers a tiered pricing model with the flexibility to suit different business needs:

• Quick Start Bundle: $0
• Core: For $69/month
• Growth: $165/month
• Build Your Own: Custom quote

Transaction fees depend on your sales volumes, so you’ll need to be aware that as your business grows, the number will grow with you. Remember, these costs do not include hardware. Toast’s hardware can cost you from $700.

Key Features

• Menu Management: Easily update and customize your menu directly from the POS system.
• Online Ordering: Integrate with your website for seamless online ordering and delivery management.
• Inventory Management: Monitor your inventory in real-time, helping reduce waste and increase profitability.
• Customer Relationship Management: Create customer profiles and implement loyalty programs to enhance customer retention.

Pros and Cons

Pros

• Industry-Specific Features: Toast is designed specifically for the food service industry, providing tailored features that generic POS systems may not offer.
• Ease of Use: With an intuitive interface, it’s straightforward for your staff to pick up and use.

• Versatile Integration: From online ordering to loyalty programs, this POS software integrates well with numerous functions of your restaurant operations.

• Industry-Specific Features: Toast is designed specifically for the food service industry, providing tailored features that generic POS systems may not offer.
• Ease of Use: With an intuitive interface, it’s straightforward for your staff to pick up and use.
• Versatile Integration: From online ordering to loyalty programs, this POS software integrates well with numerous functions of your restaurant operations.

Cons

• Pricing Transparency: Custom-quoted transaction fees mean you’ll need to reach out toToast for full cost implications.
• Hardware Costs: While Toast’s software might appear competitively priced, hardware costs can add up.

  Customer Support

Toast offers support through multiple channels, including a 24/7 support line, email, and a comprehensive online knowledge base full of guides and FAQs. This ensures you’re covered anytime during the lunch rush or late-night inventory checks.

Best For Who?

Toast POS software best suits businesses within the food service sector, particularly small to mid-sized restaurants, cafes, and food trucks. It provides key integrations for smooth operation for those that run both a physical and an online food service operation.

Lightspeed

Lightspeed is a cloud-based POS system known for its detailed inventory management, comprehensive reporting, and robust customer management tools. Its powerful capabilities are designed to fit diverse industries, from retail to hospitality.

Pricing

With Lightspeed, you have several pricing options to cater to different business needs. However, it starts at $69/month when billed annually. This plan includes one register, basic reporting, and access to Lightspeed Payments.

Both plans scale up in cost for more registers and advanced features. Transaction fees for Lightspeed Payments are 2.6% + 10¢ for in-person transactions. Hardware costs vary based on business requirements, and you’ll need to contact LightSpeed to get the quote.

Key Features

Lightspeed comes with an array of impressive features designed to streamline your operations:

• Inventory Management: Lightspeed provides detailed inventory management and tracking, helping you to manage stock effectively.
• Customer Management: Build customer profiles, manage loyalty programs, and track customer behavior.
• Data Reporting: Access robust reporting to monitor sales, employee performance, and other business-critical metrics.
• Integrated Payments: Seamlessly accept various payment methods, both in-person and online.

Pros and Cons

Pros

• Comprehensive Features: From inventory management to detailed reporting, Lightspeed offers an extensive suite of tools for your business.
• Intuitive Interface: The system is user-friendly and easy to navigate, minimizing training time.
• Data-Oriented System: Lightspeed offers various reports to help drive the most well-informed decision.

Cons

• Higher Costs for Extra Features: To access advanced features, you’ll need to invest in pricier plans, which may stretch the budget of some small businesses.
• Learning Curve: While the system is user-friendly, its extensive capabilities can create a steep learning curve for some users.

Customer Support

Lightspeed provides 24/7 weekly customer support via live chat, email, and phone. They also maintain a comprehensive online help center packed with guides, webinars, and FAQs to assist users in troubleshooting common issues.

Best For Who?

Lightspeed is ideal for small to large-sized businesses in the retail and hospitality sectors. It’s particularly effective for businesses with complex inventory needs.

PayPal Zettle

PayPal Zettle is a free mobile POS (mPOS) system that provides a streamlined solution for business owners on the go. It’s an attractive option for those who require flexibility, ease of use, and credibility associated with the PayPal name.

Pricing

PayPal Zettle boasts a straightforward, transparent pricing structure:

• POS Software: The Zettle Go app is free, with no monthly subscription fees. It’s an all-in-one solution for taking payments, managing inventory, and viewing sales data.
• Card Reader: Zettle’s mobile card reader costs $49. It connects to your device via Bluetooth to accept payments.
• Transaction Fees: Zettle charges a flat rate of 1.75% per transaction for in-person card payments.

These are the main costs involved, making it a cost-effective choice for businesses prioritizing affordability.

Key Features

PayPal Zettle offers an array of features to meet your small business needs:

• Sales and Inventory Management: Keep track of sales and inventory from your device, simplifying operations.
• Mobile Payments: Accept payments anywhere with the compact mobile card reader.
• Integration with PayPal: Seamlessly integrate your in-person and online sales through PayPal.
• Sales Reports: Gain valuable insights into your business performance with detailed sales reports.

Pros and Cons

As with any system, PayPal Zettle has its advantages and potential downsides:

Pros

• Cost-Effective: With no monthly fees and a low-cost card reader, it’s affordable for small businesses.
• Flexibility: The mPOS system allows you to make transactions anywhere, perfect for pop-ups, trade shows, or businesses on the move.
• Simplicity: It’s user friendly, with an intuitive interface that requires minimal training.

Cons

• Limited Advanced Features: While it covers the basics, it lacks some advanced features found in more comprehensive POS systems.

Customer Support

PayPal Zettle provides direct support through chat and phone from 9-5 pm on weekdays. Also, you can access their online resource center filled with tutorials and FAQs.

Best For Who?

PayPal Zettle is an excellent fit for small businesses and independent retailers prioritizing mobility and simplicity. It’s particularly well-suited for pop-up stores, trade shows, and mobile businesses such as food trucks or market stalls. However, those running a complex operation or requiring more advanced features could consider other POS systems.

So, Which is the best pos system for small businesses?

After thoroughly researching all the best POS systems for small businesses, we have identified one platform that notably excels in being both cost-effective and packed with beneficial features: Shopify POS. Here’s why.

Transparent Pricing Structure

The cost-effectiveness of Shopify begins with its clear, value-oriented pricing tiers. The Basic Shopify plan starts at a modest $39/month, a price point that most small businesses find highly manageable. Even the higher-level plans ($105 and $399/month) provide an excellent cost-to-benefit ratio, delivering a host of advanced features. Additionally, Shopify offers substantial discounts for those willing to commit to a yearly subscription, with up to 25% reductions.

All-Inclusive Functionality

Many POS systems might appear affordable at first glance, but additional costs can quickly mount for vital features. Shopify takes a more inclusive approach, providing a robust feature set as a standard. This includes fundamental tools like inventory management, sales tracking, and customer profile building - all without extra charges.

Cost-Efficient Hardware Approach

Certain POS providers require specific, often pricey, proprietary hardware. In contrast, Shopify accommodates a broad range of off-the-shelf hardware, making it a more accessible choice for businesses on a budget. Additionally, Shopify allows renting equipment in some countries, easing the initial setup costs.

Reduced Transactional Fees

Transactional fees can consume a significant portion of a business’s revenue. Shopify mitigates this by offering competitive rates on credit card transactions, especially for those using Shopify Payments. The result is lower operational costs and more retained earnings.

Scalability

The scalability of Shopify’s plans makes it a budget-conscious option. It allows businesses to start small and upgrade as they grow, ensuring you only pay for the needed features. This approach supports efficient cost management throughout the different stages of business development.

Round-the-Clock Support

Downtime can be expensive for small businesses. Shopify mitigates this risk with 24/7 customer support, minimizing potential operational disruptions and associated costs.

Best POS systems for small business: 5 tips to save costs

Here is the five cost-saving tips for choosing the best POS system for your small business.

1. Use Cloud-Based POS Systems

Cloud-based point-of-sale systems like Shopify POS provide exceptional functionality without a hefty price tag. These platforms eliminate the need for expensive servers and the associated maintenance costs. Plus, updates are automatic and accessible, ensuring your POS system stays current without additional expenses.

2. Select the Best Pricing Plan for Your Business

POS providers typically offer a variety of pricing plans to accommodate different business sizes and needs. Assess your business operations carefully and choose the plan that fits. Shopify’s plans, for instance, start at $39 per month for the basic option, escalating to $399 for advanced functionalities. By understanding your needs, you can avoid paying for features you don’t require.

3. Consider Renting Hardware

While investing in POS hardware can seem daunting, several POS providers, including Shopify, offer the option to rent hardware in select countries. This alternative eliminates the need for a significant upfront investment and allows for easy upgrades as technology evolves.

4. Understand Your Needs Better

A deep understanding of your business needs can save considerable costs. If you run a small café, for example, you might not need an advanced inventory management system designed for a multi-location restaurant chain. Identify the needed features, such as basic inventory management, customer profiles, and straightforward reporting.

5. Optimize Staff Training

An intuitive POS system reduces the time and resources needed for staff training. Shopify POS, known for its user-friendly interface, can quickly get your team up to speed, saving time and money. Remember, saving on costs doesn’t necessarily mean compromising on quality. The right POS system for your small business will provide the features and functionality you need at a reasonable price for your budget. By following these tips, you can make a savvy investment in your business’s future, choosing a POS system that brings both value and growth.

Best POS System for Small Businesses: FAQs

Bottom Line

That concludes our list of the best POS systems for small businesses. Each POS system has its pros and cons, so it’s best to select one that best fits your needs.