Last Updated: January 2, 2024
The best point of sale systems are affordable, up-to-date, well-integrated into your store, and do more than simply process payments. This may seem like a tall order, but today’s POS game has followed the tech trend and gone into the cloud. And there are so many benefits of a cloud-based POS.
Cloud-based point of sale systems are no longer a luxury for a business; they are essential. These systems will help streamline your business in a surprising number of ways, from inventory and reporting to management features and customer service.
Don’t let your point of sale system hinder your business any longer. A cloud POS for your retail store can help bring your business to another level of success and improve your retail business. Here is our look at several of the most important reasons to make the switch.
What is Cloud-Based POS vs Legacy On-Site POS?
There is one major distinction in how a POS stores data. Data can either be stored on-site or off-site. Below is a look at the two options.
It used to be that all POS systems were run on a server that was physically stored within the premises of the building. Each terminal would run on the POS software, but a single server, usually somewhere in the back of the shop, would contain all of the data captured by the point of sale.
This means that all of the data can only be accessed from that single server. Though fewer new retailers are using on-site servers, there are some small businesses that continue to rely on this model.
Cloud-Based Point of Sale
Using a cloud-based POS system, the data is stored in remote servers instead. Some POS providers run off-site servers themselves, while others pay a third-party. The actual hardware used with this system is typically exactly the same as that used with one using on-site servers: desktop, laptop, or tablet.
8 Benefits of a Cloud-Based POS Solution
- Added Mobility and Flexibility
- Cloud POS Inventory Management
- In-Depth Data and Reporting
- Integration with Other Business Management Tools
- Keep Up with New Payment Methods
- Improve Your Scalability
- Reduce Cost
- Strengthened Anti-Fraud Security
Cloud-based systems give you data in real-time, allowing you to act and adjust more quickly. A cloud-based POS system allows you to centralize your entire database so you can make optimal decisions and improve transparency and data visibility across your organization.
Additionally, unlike conventional on-premises POS systems, which require users to use devices connected to a particular fixed location or connect to a local network, cloud-based POS solutions can be used from anywhere. In other words, business owners and managers can use their POS to monitor multiple locations from anywhere with a wifi connection.
Cloud-based point of sale streamlines inventory management by providing real-time updates and accessibility from any location, enabling businesses to monitor stock levels remotely. These systems automate inventory tracking, reducing the likelihood of errors and minimizing manual input. This will help ensure that you keep an optimal stock level for each item. Running out of stock leads to sales loss while being overstocked ties up your cash.
Additionally, cloud POS solutions often integrate with other business applications, facilitating seamless data flow between inventory, sales, and financial records. This enhances overall efficiency, enabling businesses to make informed decisions based on accurate and up-to-date inventory information.
3. In-Depth Data and Reporting
Like your inventory, cloud software can forecast data and analyze trends in real-time. Your POS should be there as a guide to more sales. Reports focusing on best/worst sellers, day-to-day sales patterns, sales per transaction, inventory values, and many others are readily available with a cloud-based system.
POS analytics can also aid in managing your employees. Scheduling, payroll, accounting, adjustable levels of access, and shift reports are just a few of the features possible with a cloud point of sale. This also saves time, lessens stress, and prevents small mistakes, all of which mean more money for your business.
4. Integration with Other Business Management Tools
Under the cloud, your point of sale can manage email marketing, loyalty programs, and other forms of customer relationship management (CRM). Combining any or all of your CRM into one platform saves you time and money and ensures consistency and ease of communication with each customer.
Plus, the cloud seamlessly integrates with accounting programs, eCommerce platforms, RFID servers, and more. The future of retail automation relies on cloud-based systems.
5. Keep Up with New Payment Methods
Not only does this keep transactions fast and easy, but it also meets each guest’s expectations. Don’t let the last impression seem sloppy. The payment world is changing fast and your point of sale system should adapt along with it.
6. Improve Your Scalability
A cloud-based POS system is designed to be scalable. There is no need to invest in expensive, cumbersome servers for each location.
If you’re a multi-location store owner, you’ll have a ton of data to manage, which can be complicated to track if you have various types of software. Cloud-based checkout with a complete POS solution changes this dynamic, allowing retailers to grow as fast or slow as they want with centralized checkout data in the cloud.
Multi-location retailers or quick-service restaurants can now switch off POS systems in certain locations without losing access to all the useful customer and diner data they have stored. Cloud-based POS systems with a monthly subscription model will make it easier to increase or decrease the number of POS hardware devices as needed.
7. Reduce Costs
Cloud POS simplifies point of sale costs. Users pay a monthly subscription fee instead of a one-time licensing fee. This ensures that they’ll always have the most up-to-date features, continual customer support, and no sudden costs for replacement. Plus, subscription models mean you can pay for what you want. Subscribe to the plan that best fits you rather than pay for features you won’t use.
Unlike legacy systems, cloud POS systems keep pricing fair and recurring. This can help your business reallocate resources to the many other areas of your business worth investing more in. Cloud-based software also automatically upgrades itself at no additional cost, unlike traditional software. And if you run into problems, say goodbye to annoying service fees. With a cloud-based POS system, this is never the case. If there is a problem, it is addressed and fixed by the provider at no additional cost to the users.
8. Strengthened Anti-Fraud Security
Running a retail store, whether online or physical, means you have a lot of data, usually related to customers. Whether it’s user transaction information, personal data, or information about your payment system, a ton of information must be protected.
No matter how many security protocols you adhere to, digital products are still vulnerable to data breaches. One way or another, hackers will try to find a way to gain unauthorized access. Therefore, organizations must implement critical data security strategies to avoid cyber attacks. With a cloud-based POS system, the security of your data is assured.
Unlike on-premises software, the security system of a cloud-based POS system is much more advanced and comprehensive. It relies on data encryption and strong firewalls to protect your data from the hands of hackers. With cloud-based systems, even if you lose data on your device, your central system still has a data backup.
What Types of Businesses Can Benefit From a Retail Cloud-Based POS?
All types of businesses can benefit from the cloud. As for retail, here are some industry-specific aspects:
C-stores typically have a massive inventory. Thousands of products can be very difficult to manage and keep track of. A POS in the cloud lets managers or owners access this from anywhere and keep an eye on the best-sellers. In a retail arena that relies on keeping productive items on your shelves, a cloud-based convenience store POS helps make decisions easier.
Liquor Stores and Wine Shops
Many liquor stores have multiple locations. And between locations, they often carry different products at different prices. Without a cloud point of solution, inventory and accuracy can be a nightmare. Keeping this data in one remote server saves time, money, and a lot of headaches.
Amusement Parks and Museums
Theme parks and museums often have multiple verticals in one location. This means that you need a POS solution that covers your online ticketing, membership, gift shop, kiosks, and small restaurants. Not only must the software be diverse. These businesses also cover a large area, and managers must be able to access data from any location within the park or museum.
Reaping the Benefits of a Cloud-Based POS
It’s pretty cool that your point of sale has gone from a necessary inconvenience to something that can work for you and your growing business. And it’s cloud-based technology that has ushered in this change. More and more large and small businesses are making the switch to this software. Find out more about how KORONA POS cloud-based retail software can help grow your business to its full potential.
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FAQs: The Future Of Cloud-Based POS
The global cloud POS market size was valued at $2.24 billion in 2020 and is expected to reach $13.24 billion by 2028, registering a CAGR of 24.5% from 2020 to 2028. The COVID-19 pandemic impacted the cloud POS market in the first half of 2020 due to the temporary closure of transportation terminals, retail stores, and restaurants. Government organizations have imposed strict lockdown measures and social distancing regulations to reduce the overall spread of the virus. This factor encourages customers to prominently use cashless payment methods, such as digital wallets and credit cards, to avoid direct contact.
Cloud-based POS is a type of POS system where the information for transaction processing comes from a remote cloud service. Typically, point of sale refers to where purchases occur, such as a cashier’s kiosk. Cloud-based POS systems process all payment transactions and updates online rather than on your local computer.
The U.S. enterprise market size exceeded $600 million in 2021 and is expected to grow at a CAGR of 14% through 2028, according to this GMI report.
A traditional POS system, also known as “on-premise” or “traditional” POS, stores data on local servers and operates on a closed internal network. This type of POS system is a thing of the past and is being replaced by cloud POS systems and POS terminals to facilitate employee checkout.