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Shopify POS for Small Businesses: What It Is & Why You Need It

What It Is & Why You Need It

Whether you’re starting a new eCommerce business or pushing your company to step up its online sales game, Shopify offers solutions that can transform your organization. However, implementing Shopify on your own can prove to be a daunting task. Luckily, there are eCommerce Development Companies, such as Oyova, that have a skilled team of experienced Shopify developers at the ready to get your point-of-sale system implemented and even customized to meet your needs.

Our guide will discuss the inner workings of Shopify, the costs, the benefits, and what you need to consider when deciding if it’s the right tool for your business.

 

Shopify POS for Small Businesses: What It Is & Why You Need It

What is Shopify? What is the function of a point-of-sale (POS) system? The technology has made a standalone cash register a dinosaur. In today’s economy, having a POS for your small retail store or restaurant is essential to operate effectively.

Cloud-based systems can do much more than a cash register ever could, such as updating data coming in from various locations in real-time. They can take care of payments, manage employee payroll, and be used to create daily reports.

What is Shopify POS?

Shopify is the most powerful cloud-based point-of-sale system. We specifically recommend it for a few fundamental reasons. It allows you to integrate your in-store and online sales effectively. Over a million businesses use this software to unify their sales from the Web and physical storefronts. That group demonstrates an average year-over-year growth rate of 30 percent.

Why is Shopify outperforming the competition? It keeps adapting and improving all the time. In fact, Fast Company recently called Shopify the #1 most innovative company serving the retail sector.

How Shopify Creates Immediate Customer Loyalty

Loyalty is enhanced through the following features:

  • Personalized marketing — Gathers contact information for marketing plans that provide exclusive sneak peeks and discounts;
  • Loyalty apps — Gives customers rewards for their online and in-store purchases with integrated loyalty programs;
  • Simple exchanges and returns — Allows your employees to help a customer with any issues, wherever they have bought the product;
  • Up-to-the-minute customer profiles — Enables you to see lifetime spend and any notes for both online and in-store sales for personalized interactions.

Shopify FAQs

Here are answers to four frequently asked questions about the POS:

Does Shopify Have A Point-of-Sale?

Yes. It comes in a Lite and Pro version, and the latter is far more robust.

How Does Shopify Work?

Retail POS systems and the online Shopify system are integrated seamlessly via the POS. In other words, it offers true omnichannel selling. That goes far beyond the standard. Nearly every eCommerce platform must have a middleware solution to integrate its POS systems with its shops. Promotions and loyalty programs are enhanced through native integration. In-store and online customer experience are married. Through these capabilities, customers get a much more robust experience, allowing them to do the following (among other capabilities):

  • Buy online; exchange or return in the store.
  • Buy online; pick up at the store.
  • Buy in-store; get the product shipped.
  • Leverage strong integrations with Instagram and Facebook.

While you do need Shopify POS hardware, you do not need to buy it from Shopify – and you can still keep your system compatible with the Shopify point-of-sale system.

How Much Does Shopify Charge?

Every Shopify plan comes standardly with Shopify POS Lite. If you want Shopify POS Pro, you will need to pay an $89 monthly charge for each of your physical locations beyond what you pay for your Shopify plan. Shopify POS Pro comes standard with a Shopify Plus plan.

You get quite a few extra capabilities with the Pro version:

  • Unlimited employees on the system
  • Save online, retrieve in-store
  • Save in-store, retrieve online
  • Staff roles and permissions
  • Manager approval settings
  • Tailored printed receipts
  • Inventory management toolset
  • High-level reporting and analytics
  • Detailed reporting through various apps and integrations
  • Exchanges at physical stores or online
  • Shipments to customers of products they buy in-store
  • In-store customer pickup of products purchased online
  • In-store exchanges and returns of products bought online.

 

The Cost of Shopify POS: Rates, Fees, & More

Whether you have a physical store, a pop-up, or are operating on-the-go, you need a robust point-of-sale (POS) system. Meeting that need, Shopify allows you to complete transactions via an Apple or Android mobile device. You can process orders, accept payments, generate receipts, and locate products throughout your system using Shopify. Accessible through any browser, Shopify admin allows you to perform all behind-the-scenes store management.

 

Shopify POS Cost & Compatibility

Here are answers to four key questions about Shopify pricing, along with compatible devices and operating systems:

  1. How Much Does Shopify Cost?

You can get the low-end version of this point-of-sale platform, Shopify POS Lite, 100% free when purchasing any Shopify plan. Here are the essentials of the Lite and Pro versions:

Shopify POS Lite fundamentals

  • Recommended for on-the-go-sales
  • Mobile POS platform with hardware accessories
  • Customer profiles
  • Product and order management
  • Credit card rates for in-person transactions starting at 2.4 percent.

Shopify POS Pro fundamentals

  • Recommended for physical store sales
  • All the features included with the Lite version
  • Features for omnichannel selling (central to its value; see FAQ #3)
  • Intelligent inventory management
  • No register limitations
  • No store staff limitations
  • In-store analytics
  • Roles and permissions for staff.

2. How Much Is Shopify POS Pro vs. Shopify Lite?

If you’re considering Shopify for your POS retail system, you may be wondering about the costs for the different types of Shopify POS: POS Lite and POS Pro. Shopify pricing can first seem complex but is, in the end, straightforward.

Shopify Plus is $2000 per month for the base license fee. However, if you go over $800,000 in gross turnover, you switch over to a 0.25 percent GMV percentage. If you have a Shopify Plus plan, you will get the higher-end version of the platform, Shopify Pro, for free.

If you decide you want to upgrade to the Pro version but do NOT have Shopify Plus, there are fees you will need to pay. That amount is $89 per month for each of your physical locations (in addition to your Shopify plan cost).

  • Anyone with a Shopify plan can start using Shopify POS Lite 100% FREE.
  • Anyone with a Shopify Plus plan can start using Shopify POS Pro 100% FREE.

Shopify pricing is zero for the Lite version and zero for the Pro version if you have a Shopify Plus plan. However, you will need to pay extra if you have a standard Shopify plan and want POS Pro.

 

3. What Is The POS Subscription In Shopify?

The retail point-of-sale capabilities offered through Shopify allow you to tightly integrate your online Shopify store with your brick-and-mortar locations. While you get the Lite version with your Shopify plan, the Pro version is particularly compelling due to its Omnichannel Selling features, such as:

  • In-store pickup of online purchases
  • In-store exchange or return of online purchases
  • Customer shipment of in-store purchases
  • Integrated online and POS promotions
  • Integrated online and POS loyalty programs.

4. What Point-of-Sale Systems Works with Shopify?

You can use various mainstream POS brands. You can have a Shopify account for your website and use a different platform for your physical retail stores. However, keep in mind that while you can integrate Shopify with another POS, you will yield the most benefits using Shopify as it’s a native integration.

Specifically, you will get the most out of Shopify POS Pro.

 

Adding A POS to Shopify

A Shopify eCommerce development team can help you add the POS and get it running, using all the most powerful Omnichannel Selling features (among other capabilities). However, the DIY path is essentially these eight steps:

  1. Configure your administrative settings.
  2. Download the Shopify POS app.
  3. Add your products and organize them.
  4. Set up your tax settings.
  5. Verify that you can take payment.
  6. Order your POS hardware and set it up. You can use Shopify POS hardware or compatible hardware from another vendor.
  7. Put through a few test orders.
  8. Do an online promotion.

Keep in mind; this process isn’t simple. Working with a trusted development team, such as Oyova, to help set up your system can eliminate wasted hours – and wasted money.

Shopify Pricing Related to Hardware

Another aspect of cost is hardware. You will need to buy POS hardware (except for whatever components you want to skip) to utilize Shopify at a physical store. The important thing with hardware is that it is of the right type. You can get it through Shopify itself or from third-party vendors.

Types of hardware include the following:

  • Cash drawers
  • Mobile and credit card chip readers
  • Receipt printers
  • Barcode scanners
  • iPad countertop holders.

Here are three popular hardware packages and products Shopify offers:

Shopify Retail Kit 9.7”

Price: $229

  • iPad Retail Stand
  • Mounting Kit
  • Tap & Chip Card Reader
  • Dock for Card Reader
  • Mini Dock Cable.

Shopify Retail Stand for iPad 9.7”

Price: $149

  • Retail Stand Base
  • 2.5-Meter AC Cable
  • Power Adapter
  • iPad Case.

Shopify Tap & Chip Card Reader

Price: $49

  • Tap & Chip Card Reader
  • USB Charging Cable.

What are the benefits of hiring Shopify eCommerce development services?

Beyond Shopify POS fees for software and hardware, you may also want to factor in the cost of professional assistance to optimize your use of this platform.

There are three basic reasons that utilizing these services is valuable:

  1. Maintains focus: Rather than trying to DIY, using outside expertise allows you to maintain invaluable focus on your core business, disentangled from any technological issues where you get it right the first time.
  2. Delivers a full-service solution: You access a comprehensive approach backed by marketing and development specialists.
  3. Yields better experience: Between your storefront and your eCommerce presence, you can create seamlessness in the customer experience. Better customer experience amplifies loyalty, increases retention, and expands your long-term revenue.
  4. Leverages omnichannel expertise: Tap the knowledge of an organization with expertise, such as Oyova, in Shopify’s Omnichannel Selling features and know how to leverage them, so you gain the greatest ROI.

 

Shopify Pricing Compared

Critical to your ongoing costs is the pricing for different plans. You can try Shopify for free for 14 days. Then you need to decide between a Basic Shopify, Shopify, or Advanced plan (unless you have a Shopify Plus plan). Here are just a few of the similarities and differences between those three core options:

Basic Shopify Shopify Advanced Shopify
Monthly price $29/month $79/month $299/month
Ecommerce store + blog Yes Yes Yes
# of staff who can use Shopify POS & admin 2 5 15
24/7 support Yes Yes Yes
Unlimited # of products Yes Yes Yes
# of storage locations (warehouses, stores, pop-ups, etc.) where you can assign inventory 4 5 8
Credit card rates — online 2.9 percent plus $0.30 2.6 percent plus $0.30 2.4 percent plus $0.30
Credit card rates – in-person 2.7 percent plus $0.00 USD 2.5 percent plus $0.00 2.4 percent plus $0.00
Fee for using non-Shopify payment providers  2.0 percent 1.0 percent 0.5 percent
Professional reports No Yes Yes
Advanced report builder  No No Yes
Third-party calculated shipping rates (At checkout, you can see shipping rates generated by third-party apps or your own account.) No No Yes

6 Key Difference Between Shopify POS Pro vs. Shopify POS Lite

It does not help much to know the difference in cost between the Shopify POS Lite and ShopifyPOS Pro versions if you do not know what you are getting. Here are just a few features you get with Shopify POS Pro that do not come with the free Lite version:

  1. Automatic discounts: Whether a customer is in your store or is shopping you online, they can redeem BOGO, fixed amount, and percentage discounts easily. There is no need to manually calculate discounts since they are applied at checkout automatically!
  2. Buy in-store, ship to customer: If your in-store inventory is low at a physical store, you can sell from wherever you have it. This feature also works well for customizable products and showrooms.
  3. Buy online, pick up in-store: You can quickly notify customers when pickup orders are ready, with comprehensive tracking and managing capabilities.
  4. Product recommendations: With your customers’ online purchase data integrated, you get smart suggestions and sell more in-person.
  5. Retail staff roles & permissions: You want to control access to information and determine who can perform which tasks. This feature allows you to establish permission sets suitable for each role.
  6. Demand forecasting: You will get suggestions from Shopify as to what should stay on your shelves based on business trends and previous sales data.

 

Shopify Setup: Why You May Want to Reconsider the DIY Method

The opportunity cost could be high for your company to go DIY with Shopify POS. By working with a Shopify eCommerce website development team instead, you can focus on your core business rather than getting wrapped up in technological headaches.

Why Use Development Services For Shopify Setup?

Shopify eCommerce development services can be essential in helping your brand grow, including during the POS setup stage. eCommerce developers are helpful whether you have a loyal, established customer base or have just opened a startup. Shopify development pros can be an invaluable resource when you launch Shopify POS, accelerating your growth with the perfect blend of functionality and features.

These professionals are highly adept at leveraging the platform to craft powerful omnichannel selling experiences. Shopify development specialists are experienced in everything needed to unify your physical/digital presence and market your brand. Their toolset includes numerous features to enhance payment setup, inventory management, and other tasks. These diversely trained tech consultants specialize in user experience, design, and functionality.

Why Shopify eCommerce Developers Are Preferable To DIY

Here are 11 ways Shopify eCommerce development services can be powerful for your business, for POS setup, and beyond:

Assistance – An eCommerce development company can help you set up the Shopify POS and guide and advise you as you adopt the system. Working with a Shopify development company generally will allow you to enhance your functionality. You can better streamline checkout, integrate different payment gateways, improve inventory management, and bolster online store navigation.

Expertise – It helps to have a specialist on your side who has a background in Shopify applications, inventory management systems, payment gateways, and other needs when setting up Shopify POS.

Multiple revenue channels – Even if you continue selling the same set of products, you can diversify your income source by creating additional business channels beyond your physical store. It takes just two weeks to set up additional channels if you already have a brick-and-mortar business in place – especially with a Shopify eCommerce website development firm guiding the way.

Insight – People with extensive Shopify experience will have insights that can strengthen your technology. These insights can improve your growth in-person and online.

Focus – You can return your focus to your core business when you hire a Shopify developer rather than going DIY. Essentially, you get back valuable time that you can use centering on your core business, allowing you to thrive.

Decreased downtime – A Shopify POS developer can help ensure you avoid technical glitches and minimize downtime.

Incorporating best practices – If you want your business to grow, you must optimize development, design, and (customer and employee) user experience. Utilizing an expert’s best practices will drive higher revenue and get you in front of more potential customers.

Integration – So you can minimize supervision and get your store running quickly, Shopify development services can integrate all the apps you need.

Brand cohesion – To captivate prospects and raise your conversion, it is not enough to have a fully functional eCommerce store. You also need brand cohesion. A Shopify developer will ensure your brand is represented well online, leading to higher loyalty and more in-person POS sales.

Making it yours – The Shopify developer will customize your store to match your needs, so based on the features they add, Shopify POS will be more useful to you.

Compatibility – These professionals will also ensure device compatibility is maintained within your brick-and-mortar team as well as it is with online customers.

Enabling & Empowering Shopify Stores

Shopify has made eCommerce more accessible. It is easy to start using the platform because of its template model. Nonetheless, when you are setting up Shopify POS and your Shopify admin, you will benefit from having a bespoke store that looks incredibly professional and allows your staff to pleasantly perform backend tasks.

There are many stresses to running a business, especially when changing a system as essential as POS. With a Shopify development team on your side, you get help with the technology side of your business and marketing strategy, inventory management, and other elements that are built into the ecosystem.

Choosing The Right Partner

Data migrations are not easy. To be ideally prepared for success, carefully establish the organizational structure at the onset. Otherwise, long-term management can be difficult and painful.

As you proceed, you want to address the right considerations and to ask the right questions. That can happen when you work with an organization that understands Shopify, its competitors, and eCommerce as a whole.

If you want to implement and roll out a new system successfully, the best choice is to partner with an agency that has three primary characteristics:

  1. Understands how your business operates in-store and online
  2. Knows your business goals
  3. Has proven data migration competency