What is Point of Sale?
Definition and Meaning
If you’ve been asking yourself “what is point of sale,” you’ll be happy to know that the explanation isn’t all that complex. In the simplest terms, a point of sale is the location and instance when a customer completes a transaction. In a traditional setting, this would be the checkout line at a store. In e-commerce, this would be the final screen before you click the “Purchase” button.
What’s involved in the transaction? The seller (or, more likely, their employee) will calculate how much money is owed by the customer. The seller will then provide the buyer with an invoice (this isn’t always applicable) and methods for completing the purchase. The last step of the “point of sale” is the literal financial transaction, as the customer will pay the seller for the product or service.
What is Point of Sale System?
Besides asking yourself “what is point of sale,” you may also be wondering about the accompanying software. With point of sale technologies, you can better track each of your sales. Thanks to these programs, you’ll be able to thoroughly track your inventory, analyze data, and discover which products are popular. You can also continue to rely on these records in future years, and this information can help play a role in your buying decisions.
This software is mostly relevant for brick and mortar stores, as these businesses can equip their checkout machines with the technology. When it comes to e-commerce, you may be required to compile this information yourself. Of course, considering all of the statistical advantages, your efforts will still prove to be worthwhile.
How Can You Capitalize on Point of Sale?
Now that we’ve answer the question “what is point of sale”, we’re going to explain how you can capitalize on this strategy. Most businesses look to take advantage of their point of sale, as buyers are more impulsive and willing to buy when they’re at this point of the process. This is why you’ll see grocery stores include low-cost candy at their checkouts, or why giant department stores often have some of their best deals at the register.
This can also apply to e-commerce businesses. Right before a customer is ready to complete their purchase, you can entice them with a promo that applies to an additional product. The buyer may not want to miss out on the “exclusive offer,” and they’ll head back into your “shop” to search for more products.
How Does Point of Sale Apply to Your Shop?
Point of sale is relevant to any type of business, big or small. It doesn’t matter whether you’re running a literal, physical shop or an online store. The opportunities that come out of a point of sale (particularly the sales statistics) can prove to be invaluable.
Besides tracking all of the relevant data, it’s important to make sure that your website or Spreadshop is consistently guiding customers to the checkout screen. Once they’ve arrived at this destination, your only focus should be on completing the purchase. Don’t distract them with glitzy graphics or needless copy. Instead, allow them to quickly and easily enter all of their payment/shipping information, and provide a straight-forward call to action so they can complete the purchase.