Best POS systems for eCommerce guide

Running an online business is a whole different game compared to managing a physical store alone. In-store, you’re face-to-face with customers out front, while tracking inventory in your warehouse, and you’re handling payments at a single checkout counter. With an online store, though, everything needs to flow digitally. So, you’ve got unique demands like managing inventory across multiple locations, processing orders seamlessly, and handling customer data at scale.

The ecommerce market is on fire, expected to bring in 1.2 trillion U.S. dollars in 2024 and up to 1.8 trillion by 2029. To stay competitive, a POS system designed for ecommerce is absolutely essential.

So let’s get into the top features and the best POS systems that cater to online stores and small businesses, covering everything from advanced inventory management to employee management tools, multi-location capabilities, reporting, and analytics. Here’s what you need to know to find a cloud-based POS provider:

Benefits of a POS system for an online business

A good retail POS system can make running an online business smoother, faster, and way more organized. Here are some top benefits:

Enhanced inventory management

One of the standout benefits of using a POS system for online businesses is its ability to manage inventory effectively. Let’s say you run a trendy online clothing store with hundreds of SKUs (Stock Keeping Units) for different styles, colors, and sizes. Keeping track of what’s in stock can become a real challenge, especially during peak shopping seasons. A cloud-based POS system connects directly to your online store, allowing for real-time inventory tracking across all your sales channels. Every time a customer makes a purchase, your inventory automatically updates. This feature ensures you never accidentally oversell popular items, helping you maintain customer loyalty and satisfaction.

Moreover, an effective POS system offers insights into your sales data and inventory levels, helping you see which SKUs are selling fast and which are not moving at all. If you notice a particular item is frequently out of stock, you can quickly reorder before it runs out completely, ensuring you never miss out on potential sales. With the average out-of-stock rate for ecommerce businesses hovering around 8%, having a robust POS system is crucial for minimizing missed sales opportunities. By effectively managing inventory, you can boost online sales and streamline your operations, making it easier to choose a POS system that truly fits your needs as an online business.

Improved customer data & personalization

Another major win for your online business is how a robust POS system gathers customer data to enhance personalization. Let’s say you run a skincare brand. With a POS system that tracks individual customer purchases, you can see who loves what products and when they typically shop. For instance, if you notice that a customer regularly buys your anti-aging serum, you can tailor their shopping experience by recommending related products, like a matching moisturizer or a new eye cream that complements their favorite serum.

This level of personalization creates a unique shopping experience for each customer, making them feel valued and understood. Instead of bombarding your entire email list with generic promotions, you can send personalized messages that speak directly to their interests. Customers today expect this tailored approach. In fact, McKinsey & Co found that 76% of consumers are more likely to purchase from brands that personalize their marketing for retail efforts. By using customer data effectively, you not only enhance customer loyalty but also increase the chances of repeat purchases. This targeted experience is crucial in today’s competitive ecommerce landscape, allowing you to build strong relationships with your customers while driving online sales.

Seamless online & offline sales integration

Did you know that 73% of consumers prefer to shop across multiple channels? This highlights the growing need for a smooth shopping experience between online and offline sales. The best POS systems with ecommerce integrations make this effortless, which is essential for businesses with both an online presence and a brick-and-mortar location.

For example, imagine you run a tech gadgets store that sells products online and in a physical shop. With a versatile POS system, every sale (whether made in-store or online) updates your inventory in real time. If a customer walks into your store and buys the latest wireless earbuds, for example, your inventory automatically reflects this sale online, preventing other customers from ordering the earbuds only to find out they’re out of stock.

Must-have features in an ecommerce POS system

When you’re setting up your online store, choosing the right POS system is crucial for your success. Unlike traditional retail POS systems, which are built for physical stores, ecommerce POS systems cater specifically to the unique needs of online businesses. Here are some must-have features to consider when selecting a POS system for your ecommerce operations.

Inventory management 

Managing inventory effectively in ecommerce is different from traditional retail, where you can physically see and touch the products. An online store requires a more dynamic approach. Here’s what to look for in an ecommerce POS system:

• Real-time inventory tracking: A robust ecommerce POS should provide real-time updates on inventory levels. Unlike traditional retail POS systems, which may require manual stock adjustments, an online POS automates this process, ensuring your stock count reflects actual sales immediately.
• Multi-location management: If you operate from multiple warehouses or locations, your POS system should enable you to manage inventory across all sites effortlessly. Traditional systems may struggle with this, whereas a good ecommerce POS allows for centralized tracking, helping you know exactly where products are stored and how to fulfill orders efficiently.
• Barcode scanning: To streamline the inventory process, look for a POS system that supports barcode scanning. Traditional retail POS systems often rely on manual entry, which can lead to errors. Ecommerce systems with barcode functionality make it easier to conduct regular inventory audits and restocking, saving you time and reducing mistakes.
• Automated restocking alerts: You need a POS that can notify you when stock levels drop below a certain threshold. Traditional retail systems often lack this feature, but for online sales, staying on top of inventory is essential to avoid disappointing customers.

Customer Relationship Management (CRM)

Building strong customer relationships is key in ecommerce, and an integrated CRM system can help. Here’s what to prioritize:

• Customer data tracking: Your POS should gather valuable data on individual customer behavior, including purchase history and preferences. Unlike traditional retail systems, which may not track detailed customer interactions, ecommerce POS systems offer deeper insights that help you tailor marketing efforts.
• Personalized marketing capabilities: You need a POS that allows you to segment customers based on their purchase history and preferences. Traditional systems may not support this level of personalization. By using this feature, you can create targeted email campaigns that speak directly to your customers' interests.
• Loyalty programs: A great ecommerce POS system should include features for setting up and managing customer loyalty programs. While traditional systems may offer basic loyalty tracking, an advanced ecommerce POS can provide insights into customer spending habits, enabling you to design rewards that keep them coming back.
• Automated customer communications: Look for a POS that helps automate follow-up emails and promotions based on customer actions. Traditional systems might require manual input, but a modern ecommerce POS can streamline this process, enhancing the customer experience.
• Customer support integration: Your POS should easily integrate with customer support tools, allowing you to address customer inquiries quickly. Unlike traditional POS systems, which may not have this feature, ecommerce systems help ensure that you maintain high levels of customer satisfaction.

Payment processing flexibility

Customers appreciate having choices at checkout. Your POS system should offer:

• Multiple payment options: Ensure your ecommerce POS supports various payment methods, including credit cards, digital wallets, and online payment solutions. Traditional POS systems are often limited to in-store payments, whereas ecommerce systems provide flexibility to reduce cart abandonment.
• Secure online payments: Your POS system should prioritize security for online transactions, helping protect sensitive customer data. Unlike traditional systems that might focus on in-store transactions, a good ecommerce POS needs robust security features to ensure compliance with payment processing standards.
• Transaction management: Your POS should simplify tracking transaction fees and payment processing costs. Traditional retail systems might not offer insights into these expenses, while ecommerce systems provide clear visibility into online payment processing fees, helping you manage your bottom line effectively.
• Recurring billing capabilities: If you offer subscription-based products or services, look for a POS that can handle recurring payments seamlessly. Traditional systems typically don't have this functionality, making ecommerce POS systems crucial for businesses that rely on subscriptions.
• International payment support: If you plan to sell globally, your POS should support multiple currencies and international payment methods. Traditional retail systems often lack this feature, while ecommerce systems enable you to reach a broader audience.

Integration with ecommerce platforms

A seamless integration between your POS system and your ecommerce platform is crucial for smooth operations. Here’s what to look for:

• Compatibility with popular ecommerce platforms: Make sure your POS can integrate with platforms like Shopify, WooCommerce, or Magento. Unlike traditional retail POS systems, which might not connect easily with online platforms, a solid ecommerce POS ensures you can manage online and offline sales, orders, and inventory from a single interface.
• Online ordering capabilities: Your POS should streamline the online ordering process, enabling you to handle sales from your website efficiently. Traditional systems may not support this feature, while a dedicated ecommerce POS allows you to manage sales and inventory in one place.
• Third-party app integrations: Look for a POS that easily connects with other business tools and apps you use, like email marketing services, accounting software, or customer support platforms. Traditional systems often have limited integration options, while ecommerce POS systems provide the flexibility to enhance your business operations.
• Omnichannel sales support: A great ecommerce POS should allow you to manage sales across multiple channels seamlessly. Traditional systems usually focus on single locations, but ecommerce systems enable you to track online, marketing in-store, and other sales channels all in one place.
• Sales data synchronization: Ensure your POS can sync sales data across all platforms automatically. Traditional POS systems may require manual data entry, while an ecommerce POS saves time and reduces errors by automatically updating your records.

Reporting and analytics

Understanding your business performance is essential for growth. Your ecommerce POS system should provide:

• Robust reporting tools: Look for a POS that offers detailed sales reports, customer insights, and inventory analytics. Unlike traditional systems that may provide basic reporting, a comprehensive ecommerce POS gives you the data you need to identify trends and make informed decisions.
• Sales data tracking: Access to comprehensive sales data helps you evaluate the success of your marketing efforts and adjust your strategies accordingly. Traditional systems often lack this level of detail, while ecommerce systems offer the insights needed to optimize your online presence.
• Performance metrics analysis: Your POS should allow you to analyze key performance indicators (KPIs) such as conversion rates, average order value, and customer retention rates. Traditional systems may not track these metrics effectively, making it essential to have an ecommerce POS that provides this data.
• Customizable reporting options: Choose a POS system that offers customizable reports, enabling you to focus on the metrics that matter most to your business. Traditional systems typically have fixed reporting formats, while ecommerce POS systems allow for greater flexibility.
• Sales forecasting tools: Your POS should provide tools for sales forecasting, helping you anticipate future trends based on historical data. Traditional systems often lack this functionality, making it vital for ecommerce businesses to have a POS that can guide their planning and strategy.

By incorporating these advanced features into your ecommerce POS system, you’ll create a streamlined operation that not only enhances the shopping experience for your customers but also supports your business growth. Choosing the right POS system tailored for ecommerce can set the stage for your success in the competitive online market.

Top POS system for the ecommerce business world

Now let’s get into some of the best POS providers for online businesses:

Epos Now point of sale 

Epos Now isn’t your typical POS system. No, it’s specifically crafted for the unique needs of ecommerce businesses. Think of it as your secret weapon for enhancing customer interactions while keeping costs in check. You can get it up and running in just 15 minutes, giving you more time to focus on growing your online presence and curating an amazing product lineup.

POS Software

Our POS software and intuitive interface makes accepting payments and handling overall payment processing simple, whether it’s cash, contactless, or credit card payments. The built-in product matrix allows you to organize your products by size, brand, and color, making it easy to manage inventory. Wave goodbye to tedious manual processes, as Epos Now automates many tasks, speeding up service and ensuring your customers have a smooth shopping experience. Plus, with integrated ecommerce features, you can effortlessly take your business online and reach a broader audience. 

Ecommerce features

Epos Now includes essential ecommerce functionalities that allow you to build and manage your online store with ease. With our user-friendly website builder, you can create a stunning online presence that showcases your products beautifully. Whether you’re selling apparel, accessories, or electronics, your online store can be customized to match your brand identity.

• Click and collect: Our click and collect feature makes it easy for customers to shop online and pick up their orders in-store. This adds convenience for your customers and helps drive foot traffic to your physical location.
• Omnichannel sales: Seamlessly manage online and offline sales through a single platform. Whether your customers shop in-store or online, Epos Now helps you maintain consistent inventory levels and a unified customer experience.
• Payment processing: The system supports various payment methods for online orders, ensuring that you can accommodate every customer’s preferences. Plus, you'll benefit from competitive transaction fees, keeping more of your profits where they belong.

POS hardware

The complete Epos Now solution has everything you need to run your ecommerce business smoothly. From the POS system to cash drawers, receipt printers, label printers, and portable payment options like tablet stands and card machines, these POS hardware bundles are designed for quick and accurate sales processing. Whether you’re operating from a cozy storefront or setting up for a pop-up event, this adaptable system meets your needs and fits the vibe of your brand.

App integrations

Epos Now seamlessly connects with essential tools like accounting software to manage your finances, customer relationship management platforms to strengthen customer relationships, and ecommerce solutions to boost your online presence. These integrations streamline your operations, allowing you to focus on delivering that exceptional shopping experience your customers love.

Clover

Clover targets small to medium-sized businesses by providing various software and hardware solutions specifically designed for retail and hospitality sectors. While it may not be the most affordable choice on the market, Clover offers multiple payment partnerships, allowing for some level of customization based on business needs. According to Forbes:

Pros:

• Competitive pricing structure
• Hardware options available
• Suitable for businesses with an online presence
• Provides 24/7 support via phone and email

Cons:

• Application requires interaction with a sales representative; online signup is not available
• Pricing details can lack clarity
• No free plan is available

While Clover may be suitable for some businesses, its pricing opacity and absence of free options could be perceived as significant limitations.

Zettle

Zettle is PayPal's updated card reader and POS system, designed to replace PayPal Here, which is being phased out. Zettle offers a broader range of features compared to its predecessor.

Pros:

• No monthly fees: Start using Zettle without any subscription costs.
• Lower processing fees: It offers reduced fees compared to the previous PayPal Here system.
• Multiple payment options: Accept credit, debit, contactless, and Venmo payments.
• Unified tracking: Consolidate all your payment information under one PayPal account.

Cons:

• Requires a stable cellular or Wi-Fi connection is necessary for operation.
• It lacks many additional features or integrations that other systems may offer.
• Limited ecommerce and accounting integrations: There are fewer options for connecting with online sales or accounting tools.

Factors to consider when choosing your POS solution

When you're on the hunt for the right POS solution, there are a few key factors to think about. Let's break it down.

Your business needs

Are you running an online store, or do you also have a physical location? This will determine the features you require. Do you need robust inventory management to handle stock across multiple sales channels, or are customer loyalty programs a priority for driving repeat purchases? Make a list of what’s essential versus what would just be nice to have.

Business industry

Different businesses have different requirements. For instance, an ecommerce clothing store may need detailed size and color tracking, while a specialty food shop might prioritize inventory tracking for perishables. Look for a POS solution that understands the nuances of your industry and provides the tools you need to succeed.

POS pricing 

The costs of POS systems can vary widely. Some charge monthly fees, while others may have transaction fees or upfront costs for hardware. Make sure to read the fine print so you know what you’re getting into. Are there any hidden costs? Do they offer a free trial or demo? Compare different options to find one that fits your budget without sacrificing essential features.

POS capabilities and user-friendliness

You want a solution that’s powerful yet intuitive, especially since you’ll be managing sales, inventory, and customer data all in one place. Look for features like easy integration with your ecommerce platform, mobile capabilities for on-the-go sales, and clear reporting tools to track your performance. A POS system that’s easy to use will save you time and frustration, allowing you to focus on growing your business.