Data lives online with cloud-based point-of-sale (POS) systems for small businesses. You can use internet-connected devices to run reports and manage inventory from home or on vacation. Mobile functionality, real-time data access, and low upfront costs are some of the benefits of choosing a POS system hosted in the cloud.
Some free cloud POS solutions, like Square on an iPad, work with minimal hardware. Others, like Toast or Clover, offer dedicated terminals for restaurants or retail. Learn how cloud POS works, explore examples, and decide if this type of POS is right for your business.
What is a cloud-based POS system?
A cloud-based POS system, also called web-based or cloud POS, is an online point-of-sale software solution that stores data remotely instead of on the retailer's or restaurant's local server. With a POS system hosted in the cloud, small business owners can process payments and view real-time information through internet-connected tablets or smartphones.
Mobile functionality, real-time data access, and low upfront costs are some of the benefits of choosing a POS system hosted in the cloud.
Cloud POS system benefits for small business owners
So, why choose cloud POS? Besides modern solutions' powerful POS system features, it can reduce operational costs and help your business grow. Accessible data means you can make better, faster decisions affecting your bottom line.
A cloud POS benefits small business owners, employees, and customers in the following ways:
- Increase inventory accuracy. Use built-in and integrated tools to save time tracking stock and improve inventory estimates.
- Cut IT and maintenance costs. Cloud POS providers maintain servers and update software automatically, reducing on-site expenses.
- Speed up checkouts. Retailers and restaurants can use mobile POS hardware to increase capacity during peak seasons.
- Expand locations or services easily. With synced cloud data, you can add a food truck, a checkout kiosk, or a new store without starting from scratch.
- Enhance reorder timing. Avoid stockouts and coordinate reorders using inventory management best practices, reminders, and integrated tools.
- Improve customer experience. Personalize in-person and online interactions with a purchase history and loyalty data while providing cloud-based order and refund tracking.
How to choose a cloud POS system
As with all financial and operational decisions, your choice should align with your budget, industry, and software users. Choose a small business POS system that offers the best features and pricing tiers while remaining easy to navigate and train employees.
Find affordable cloud POS solutions using these tips:
- Consider your business challenges and needs. While choosing a cloud POS based on budget and features is tempting, look at the problems it must solve first. Do you need inventory, employee, or customer management?
- Decide what your POS system must integrate with. For example, if you use inventory management software or an e-commerce platform, these should sync to your POS software. Review existing hardware, including payment terminals, that you want to keep.
- Evaluate cloud POS features. Compare the functionality of different features. For instance, can you create and accept gift cards? Does it offer marketing or loyalty tools?
- Determine offline functionality. See what the offline mode includes. Many cloud POS solutions let businesses collect payment information and perform inventory management functions.
- Check out reviews of leading cloud POS providers. Explore user feedback and professional reports to learn about others' experiences. Look for references about its ease of use, reliability, and customer support.
Best cloud-based POS providers
Popular cloud POS vendors offer free and paid plans for service professionals, retailers, and restaurants. Build a shortlist and schedule demos with top-rated POS providers to get a feel for different setups.
Here are a few small business cloud POS systems:
- Square provides flexible POS solutions for mobile and physical businesses, including free POS software and paid plans with hardware and accessories.
- Clover POS systems range from portable to countertop solutions with bundled hardware and software.
- Lightspeed is a POS that allows online ordering for small restaurants or retailers and offers several equipment options.
- SpotOn
caters to small businesses with terminal-based and online solutions for counter-service and website sales.
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