15 Crucial Factors to Consider Before Buying a POS System: A Complete Retail Buyer’s Guide

As a new business owner, you’ll make countless decisions that can influence your company’s growth and profitability.

One of the most important decisions is choosing a point-of-sale (POS) system.

Your POS system can help you get your business up and running and simplify day-to-day operations. The right POS system can also give your team the tools they need to work more efficiently, create better customer experiences, and make more informed decisions that support profitability.

It’s not a decision you should take lightly. In fact, 85% of retailers that modernized their POS systems report that the investment met or exceeded their ROI expectations, according to a Coresight Research study — evidence that the right system pays off well beyond the register.

With so many POS solutions on the market, choosing the right one isn’t always easy, especially if this is your first business or you don’t have much experience with POS technology.

Fortunately, we’re here to help. This comprehensive POS buyer’s guide breaks down the key factors to consider when choosing a POS system, including the key POS features to look for, the costs involved, and the questions you should ask potential POS vendors.

Armed with this information, you’ll be better prepared to choose a POS system that aligns with your business’s unique needs and long-term goals.

Key Takeaway

• Choosing the best POS system for small businesses or enterprise retail means evaluating more than price. Consider 15 factors ranging from inventory and payments to compliance, customer experience, and scalability.
• Pricebook automation matters. FTx Pulse pre-populates thousands of validated products, cutting manual setup effort by up to 70%.
• Digital signage, electronic price tags, and automated upselling tools like FTx Uplift should work with the POS to keep pricing accurate and create more opportunities to increase basket size.
• Age verification should be supported by automated tools such as AI-enabled ID scanning and mobile driver’s license (mDL) support, rather than relying entirely on staff judgment.
• The strongest POS solutions connect inventory, payments, compliance, customer data, and reporting in one ecosystem instead of requiring separate tools for every function.

Importance of Choosing the Right POS System

With so many POS options on the market, taking the time to evaluate your choices before you commit can help you avoid an expensive mistake. A POS system is a long-term operational decision, not just a checkout tool. Getting your POS selection right can benefit your business well beyond the register.

Enhancement in Operational Efficiency

A well-chosen system can automate repetitive tasks, such as inventory counts, pricing updates, and reporting, that might otherwise take up valuable staff time every day.

Improvement in Customer Experience

The right POS gives staff quick access to customer history and preferences, helping them provide more personalized service and recommendations.

Know Business Insights

Detailed reporting turns raw transaction data into information you can act on, such as what to reorder, what to discount, and when sales are strongest.

Ease in Business Scalability

A system designed to grow with your business means adding a second location or a new sales channel doesn’t require you to replace your entire setup.

Improved Security

Features such as payment card industry (PCI) compliance, encrypted transactions, and role-based access can help reduce the risk of fraud, data breaches, and internal theft.

Facilitate Seamless Integration

Connecting your POS to accounting, ecommerce, and marketing tools keeps data consistent across your business instead of siloing information in separate systems.

Quick Answer:

The right POS system can improve efficiency, customer experience, security, and scalability at the same time. Treat it as a long-term operational decision, not just a checkout tool.

15 Key Questions to Ask Before You Buy a POS System

Finding the best POS system for your small business or enterprise retail operation starts with asking the right questions, not just comparing price tags.

Whether you’re evaluating POS systems for the first time or re-evaluating your current setup, these 15 questions cover the POS requirements that matter most for your business:

1. How is inventory managed by the POS?

2. Can your POS system automate pricebook setup and SKU importing?

3. Can you link your brick-and-mortar to your online store?

4. Does the POS integrate with digital signage and electronic price tags?

5. Are you able to provide a personalized customer experience?

6. Does the system provide automated upselling prompts at the checkout counter?

7. Does your team feel empowered by the POS system?

8. Is technical support included in the service?

9. Will you have access to your back office wherever you are?

10. Does the POS system provide analytics and reporting?

11. How does the POS system handle age verification and legal compliance?

12. Can the POS system automate scan data reporting for manufacturer rebates?

13. Does the POS offer integrated, simple-rate payments?

14.Can you carry out targeted marketing campaigns using the POS system?

15. Can your business expand with the help of the POS system?

We’ll explore each of these POS questions in more detail below, covering the features that can separate a strong POS solution from one you’ll outgrow within a year.

1. How is inventory managed by the POS?

When you buy a POS system, it should simplify inventory management and help you identify bestsellers, determine when to restock items, and decide which products may need to be discontinued.

In particular, the POS should make it possible to manage complex inventory. For example, if you sell bracelets with various hues and patterns, you need inventory management software that helps you track stock levels for each variation and manage serialized items.

In addition, you should be able to add custom tags to products so you can group them together even when they don’t fit neatly into a category. For instance, if you have seasonal inventory, you don’t want it to clutter your POS after the season ends. Products that can be tagged are easier to find and organize when it’s time to archive them.

Inventory management POS features to consider:

• Built-in purchase orders, reorder points, and purchasing features such as vendor information
• The ability to manage serialized inventory
• A stock setup tool that imports items quickly
• Organizational tools such as reusable categories and tags
• Real-time inventory updates

2. Can your POS system automate pricebook setup and SKU importing?

Setting up a pricebook from scratch is one of the most time-consuming parts of implementing a POS system, especially if you’re manually entering thousands of stock keeping units (SKUs) one at a time.

The right POS system should shorten that process significantly. FTx Pulse, FTx POS’s global product database, pre-populates thousands of pre-validated products, saving retailers up to 70% of the manual setup effort compared with building a pricebook from scratch.

Pricebook automation POS features to consider:

• A pre-validated product database, like FTx Pulse, that reduces manual entry for common SKUs
• Bulk import via comma-separated values (CSV) file, allowing an entire product catalog to be uploaded at once
• Centralized pricebook rules that can apply pricing, tax categories, and promotions across multiple locations

Time Saver:

FTx Pulse can cut manual pricebook setup effort by up to 70%, giving new stores and retailers migrating to a new POS a significant head start.

3. Can you link your brick-and-mortar to your online store?

Consumers expect omnichannel shopping experiences. They want to move seamlessly between channels for browsing, shopping, checking out, and returning products.

Integrating your POS system with ecommerce can provide a more consistent brand experience while maintaining a centralized view of inventory, sales, orders, and customer information. It can also reduce the amount of manual work required to keep your channels up to date.

Ecommerce POS features to consider:

• Inventory, sales, and order information synchronized between your website and physical stores
• Reports that combine data from your ecommerce business, individual physical locations, and other sales channels
• Tools that help maintain a consistent brand experience across all sales channels

4. Does the POS integrate with digital signage and electronic price tags?

If a price changes at the register but not on the shelf or the screen behind the counter, customers notice—and it can create confusion at checkout.

FTx POS integrates with FTx Digital Signage and Digital Price Tags, helping pricing and promotions stay synchronized without requiring employees to manually update every sign or shelf tag.

Digital integration POS features to consider:

• Electronic shelf labels (ESL) that update when pricing changes in the POS
• Digital signage integration that reflects current pricing and promotions without requiring a separate manual update
• Promotional scheduling that starts and ends offers automatically across signage, price tags, and the register

5. Are you able to provide a personalized customer experience?

A key benefit of POS systems: You can transform the customer experience. When buying a POS system, make sure it provides customers with a good experience while also giving your staff the tools they need to serve them effectively.

To enable your staff to provide more relevant product recommendations, the system should keep track of customer profiles and purchase histories. Customer data can help employees better understand what individual shoppers typically buy and use that information to provide more personalized service.

It makes no difference who is working shifts or how senior a sales associate is once you have those customer profiles in hand. Every customer who enters the store can feel like a regular, devoted customer.

Look for a POS that has a CRM integrated into it, giving you access to custom fields, data-rich customer dashboards, and integrations with leading loyalty and marketing platforms. A more complete view of your customers can make it easier to engage them with relevant promotions and offers.

Customer experience POS features to consider:

• Integrated customer profiles that track past purchases
• Mobile POS functionality that enables staff to assist customers throughout the store
• Loyalty integrations that allow you to make better use of customer data

6. Does the system provide automated upselling prompts at the checkout counter?

A missed upsell opportunity at checkout may seem insignificant, but those missed opportunities can add up across hundreds or thousands of transactions.

FTx Uplift, FTx POS’s automated cash-wrap upselling tool, prompts relevant add-ons at checkout, giving cashiers an easy way to suggest additional products without having to remember every possible pairing.

Automated upselling POS features to consider:

• Product-driven prompts based on what is already in the customer’s basket
• Customer-facing displays (CFDs) that put upsell prompts directly in front of the customer during checkout
• Dynamic basket rules that adjust prompts based on basket value, product mix, or other criteria
• The ability to promote current offers and discounts automatically at the point of sale

7. Does your team feel empowered by the POS system?

A good POS system shouldn’t be time-consuming or frustrating for staff. It should give employees quick access to the information they need to assist customers and complete transactions efficiently.

Your employees are the face of your business, so don’t overlook their experience when evaluating new technology.

Employee management POS features to consider:

• Secure individual employee logins
• Customizable dashboards and permissions for different employees
• An intuitive interface that reduces training time
• Loyalty program integrations that help employees make better use of customer information

8. Is technical support included in the service?

Even though the fundamentals may be the same, each store and its employees are unique and have their own preferred processes, challenges, preferences, requirements, and goals.

When buying a POS system, a reputable vendor should help you determine whether the software meets your needs, assist with onboarding, and provide technical support when you need it. After making a purchase, you shouldn’t be left on your own, so be sure to ask about the support and training included with your service.

For example, if you experience POS network issues, you need a support team that can help you get back up and running. Or if you’re experiencing issues with the internet, you need a system with offline POS functionality.

Technical support POS features to consider:

• Local channel partners: professionals who offer consultation, installation, and troubleshooting services on-site
• Manager and employee orientation sessions
• Customer satisfaction information and online product reviews
• Several options to get in touch with the support staff, including the phone, online tickets, and live chat
• A variety of training resources, including online courses, webinars, videos, and product documentation

9. Will you have access to your back office wherever you are?

You have two main options when buying a POS system: On-premise POS or a cloud-based solution.

An advantage of a cloud-based system: You can access it anywhere you are. Remote access tools help you best serve your business and resolve issues more quickly.

With POS software that is cloud-based, you may access your data from your home office, a warehouse, another business location, while traveling, or even while on vacation. Real-time access to your business data can also help you make decisions and resolve issues without waiting for manual updates or data transfers.

Remote access POS features to consider:

• A cloud-based POS system that allows you to access business information and perform tasks remotely
• Real-time data access across locations
• Centralized tools for managing inventory, pricing, reporting, and other back-office functions

10. Does the POS system provide analytics and reporting?

Retailers don’t always have a complete picture of their business using legacy systems. Although goods arrived and departed, managers of businesses had only a hazy understanding of earnings and performance.

Retailers now face fierce competition and cannot afford to take chances.

The most useful systems provide relevant insights into your business operations. POS reporting can help you identify strengths, spot areas for improvement, and make better operational decisions. Additionally, you ought to be able to go deeply into the data that your POS processes daily to identify, at the very least, top sellers and overall sales success.

Analytics POS features to consider:

• Dashboards that showcase the data you require
• Easy access to data for decision-making, including staff scheduling and inventory purchasing
• Reports that highlight best-selling items, employee performance, busiest sales hours, top brands, and online versus in-store sales

11. How does the POS system handle age verification and legal compliance?

If your store sells tobacco, alcohol, vape products, or other age-restricted merchandise, a POS system that leaves ID checks entirely to staff judgment can create compliance challenges.

FTx Identity brings ID scanning, age verification prompts, and identity verification capabilities into the FTx POS checkout experience.

Age verification POS features to consider:

• AI-enabled ID scanning and verification, including support for mDLs and other digital ID formats where available
• Automated age verification prompts that trigger on age-restricted items automatically, helping employees know when a verification check is required

Compliance Note:

More states are adopting mDLs and other digital ID formats. If your business may need to support them, confirm that your POS and identity verification solution can handle the formats relevant to your market.

12. Can the POS system automate scan data reporting for manufacturer rebates?

Manufacturer rebate programs can be an additional source of revenue, but retailers need accurate sales data and timely reporting to take advantage of them.

FTx POS’s scan data reporting automates the process using register sales data, reducing the manual spreadsheet work many retailers would otherwise have to handle.

Scan data POS features to consider:

• Scan data mapping that matches products to manufacturer UPCs and rebate programs
• Automated data submissions that go out on schedule without requiring manual follow-up
• Support for multiple rebate programs and incentive tiers where applicable

13. Does the POS offer integrated, simple-rate payments?

If you’re paying too much for payment processing—or your payment solution isn’t properly integrated with your POS—it can create unnecessary costs and complexity.

Integrated payments can reduce manual entry and the potential for human error because the amount due is automatically sent from the POS to the payment terminal. It can also make the checkout process faster and reduce unnecessary receipt printing.

When evaluating payment processing, pay attention to the pricing structure as well as the integration. A simple, predictable rate can make it easier to understand your processing costs and plan your budget.

It’s also worth considering whether your payment processor and POS provider work together directly. Having both services under one provider can make it easier to determine who to contact when a payment or POS issue occurs.

Features to consider for a payments-integrated POS:

• Integrated payments that reduce manual entry
• Credit card processing
• Payment reporting available through the POS
• A simple, predictable pricing structure
• Support from a team familiar with both your POS and payment solution

14. Can you carry out targeted marketing campaigns using the POS system?

Returning customers can be valuable to retailers, particularly when businesses use customer data to create relevant offers and experiences.

Rather than sending the same promotion to every customer, retailers can use purchase history and customer information to identify different customer segments and tailor promotions to their interests.

You’ll want to be able to integrate with loyalty programs so that you can send out specialized promotions like anniversary rewards using the customer information you have in your new POS system.

Customer loyalty POS features to consider:

• Tools for sending customer communications and tracking engagement
• A customer database that records a customer’s name, contact information, preferred contact method, favorite brands, and whether they shop in-person or online
• Tools for segmenting your customer database and creating promotions that are appropriate for each segment

15. Can your business expand with the help of the POS system?

Consider the long-term costs and any future requirements when buying a POS system. When you first start out, it can be tempting to choose the simplest or cheapest system, but that decision can become expensive if you outgrow the system within a year.

Retailers require solutions that are scalable and that can grow along with their business. Otherwise, you may eventually have to spend significant time and money migrating to another POS system.

Scalability POS features to consider:

• Integration of inventory reporting and support for numerous locations
• Integration with QuickBooks and other widely used programs like Google Analytics and MailChimp
• Open technology, which makes it simple for independent developers to create applications you may add to your POS
• The ability to add registers as needed, whether they are for a pop-up shop or a new permanent location

Wrapping Up

Buying a POS system is a major investment in your business, so it’s a decision worth taking the time to get right. There are many factors you need to consider before buying, such as features, hardware compatibility, scalability, and cost.

Do your research, ask potential vendors the right questions, and consider how each system will fit into the way you actually run your business. The best POS system isn’t necessarily the one with the lowest price or the longest feature list. It’s the one that gives your business the tools it needs today while giving you room to grow tomorrow.

Are you ready to take your business to the next level with FTx POS? Contact us today to schedule a consultation and see how FTx POS can support your retail operation.