Point of Sale – POS

KEY TAKEAWAYS

A point of sale (POS) is a place where a customer executes the payment for goods or services and where sales taxes may become payable.

A POS transaction may occur in person or online, with receipts generated either in print or electronically. Cloud-based POS systems are becoming increasingly popular among merchants.

POS systems are increasingly interactive, particularly in the hospitality industry, and allow customers to place orders and reservations and pay bills electronically.

Understanding POS

Points of sale (POSs) are an important focus for marketers because consumers tend to make purchasing decisions on high-margin products or services at these strategic locations. Traditionally, businesses set up POSs near store exits to increase the rate of impulse purchases as customers leave. However, varying POS locations can give retailers more opportunities to micro-market specific product categories and influence consumers at earlier points in the sales funnel.

For example, department stores often have POSs for individual product groups, such as appliances, electronics, and apparel. The designated staff can actively promote products and guide consumers through purchase decisions rather than simply processing transactions. Similarly, the format of a POS can affect profit or buying behavior, as this gives consumers flexible options for making a purchase.

Amazon’s concept convenience store, Amazon Go, which deploys technologies that let shoppers come in, grab items, and walk out without going through a register, could revolutionize POS systems. Besides increasing convenience, this could enable POSs, loyalty, and payments to be rolled into a single customer-centric experience.