Hidden Money-Making Tricks Behind Shopify’s Point of Sale – Ecom Experts

Hidden Money-Making Tricks Behind Shopify’s Point of Sale

Whether you are relatively new to Shopify's Point of Sale (POS) or highly experienced using it, you will want to know how to effectively make use of the app to make more money for your business.

A POS is an iPad or an iPhone-based point of sale service that is offered by Shopify. The innovative app allows business owners to manage their entire physical and online stores using a single platform. It adds more value to small, medium, and large businesses.

The purpose behind Shopify offering Shopify POS as part of their eCommerce suite is to enable business owners to manage their business from virtually anywhere.

 

Shopify on the rise!

Every business wants to make more money, of course, each business to their own mission statement and goals, but ultimately you want to have a successful business that drives an income.

Recently online sales have peaked with the rise of the COVID-19 pandemic sweeping the world off its feet. With this, there has been a dramatic rise of eCommerce and how brands are selling their services and products using the Shopify platform. Shopify describes itself as "one platform with all the eCommerce and point of sale features you need to start, run, and grow your business.”

With more than one million merchants using the platform, Shopify has reported that "in the last year, 218 million people have purchased something from a store built on Shopify.”

It is no wonder that Shopify introduced their point-of-sale app to help vendors reach out even further.

Behind Shopify POS

“In 2016, Shopify’s annual merchant survey revealed that 42 percent of the platform’s 500,000 merchants sell in-person, in some capacity.”

That is a large statistic, almost half of all the merchants sell in person at some point during their business with Shopify.

Below are some valuable tricks behind using Spotify to gain more exposure and make more money:

 1. Engage

Users of Shopify's POS need to continually engage in daily conversation with the majority of their customers. Business opportunities exist everywhere and retail trends are showing a narrow divide between online and offline commerce. Engaging with your customers on a personal level will encourage stronger relationships with customers especially with a physical point of sale being made readily available for orders, transactions, and payments.

 If you do not let your clients know that POS is available, then they will not be able to take advantage of the versatility your business has to offer to meet their changing needs. Keeping up with your client's needs will build valuable relationships that will have clients returning for further sales.

2. In-Person Sales

Here is an interesting statistic to add to the ones already mentioned:

The average price of an in-person sale is 60% higher than the price of an online sale. This is according to Shopify data.

What does this mean for merchants? It means that using Shopify POS encourages an in-person sales strategy. The strategy is beneficial because merchants can raise their prices and generate a higher profit compared to having an online sales platform only.

 3. Inventory

It may not sound like a "trick" to help generate more money, but the inventory feature of Shopify POS can save your business time and help you stay focussed on the daily operations of the business. Money is saved too because the merchant does not need to hire additional staff to streamline orders, customers, and inventory. After all, Shopify POS simplifies this entire process through a single platform.

For many merchants, inventory and the management of online and offline channels poses quite a challenge for the business. Using Shopify POS helps consolidate multi-channel inventory issues, such as returns, stock, and reporting, regardless of where the product was purchased. This integrated administrative approach helps reduce friction within the business and allows operations to continue smoothly.

 

4. Versatility

Shopify POS comes with a free chip and swipe reader as well as a charging and travel base. This means that if you are selling at a festival, market, pop-up store, or at a permanent retail spot that you have the perfect solution to accept payments wherever you go.

The brand-new hardware offered to Shopify POS users offers more versatility for merchants. Now they can sell more easily and stay on the go if needed. The chip and swipe reader is a credit card reader that suits any style of selling and accepts all major debit and credit cards. The secure payment option offers security to merchants’ customers and the payment method allows merchants to accept any form of payment.

Customers will feel secure paying with their most comfortable method of payment and the flexibility of the card reader means merchants can sell their products and services through Spotify anywhere they go. This encourages more secure sales and will certainly appeal to customers who do not carry cash on them.

 

Shopify POS Just Got Better!

Shopify has recently introduced a site-wide makeover that has been extended to Shopify POS too, making in-person sales simpler than ever before. The new look and feel for Shopify POS allows merchants to sell to customers anywhere and using any device.

The improved buying experience on Shopify POS is equating to more sales:

  • New app navigation: Toggling between tasks using the enhanced app navigation means that queues are reduced, and transactions are completed faster. This creates happy customers and allows for more sales to occur during one stretch of time. Selling in-person is faster and streamlined.
  • Refund online purchases in-person: Stronger personal relationships and interactions are created with this new feature that allows merchants to refund customers in person for purchases made online. The smooth process also allows your inventory to be updated more efficiently.
  • Captures customer details in-person to review later: Marketing just got a whole lot easier because the Shopify POS app allows merchants to capture valuable shopper profiles and customer information. After a busy day, merchants can return to this captured information, even if the shopper did not make a purchase, and use the details for marketing campaigns and to encourage future sales.

 

Intricacies Behind Shopify POS

While we understand the element of Shopify POS helping merchants make more money by adding value to their business, what really lies behind the features of this app?

Shopify Point of Sale is the most versatile retail POS available that unifies online and in-store sales seamlessly. To date, 1 million merchants have entrusted their business with Shopify to help them unify their sales, regardless of where they sell. Why?

30% growth in revenue is why! 30% growth in revenue one year after the next has been experienced by businesses using Shopify POS to merge their in-store and online sales platforms.

Some big brands that can boast this significant revenue growth include:

  • Lively
  • KOTN
  • Nobull
  • Nalata / Nalata
  • Knix
  • Soludos
  • Tokyobike

Let’s take a look at some of the finer details behind the POS system that add more value to growing businesses:

Analytics

Sales reporting and analytics are two key components of a business that are a merchant’s greatest assets. If you want to drive higher sales volumes, then you need to push your business to its limits and to use your sales reporting and analytics properly in order to make informed decisions as a business owner.

 Here is a concerning statistic:

“It’s estimated that nearly 73% of business data goes completely unused.”

This means that sales trends are going unnoticed, stronger employee regulations that help manage the financial well-being of the business, and inventory management is falling behind. A recipe for disaster and for an environment that will not promote valuable growth in sales.

The solution is ensure that you are focussing on your business analytics is to equip yourself with the right POS system, such as Shopify POS, so that a solid reporting foundation is built that turns data capture into actionable insights for the business.

This feature is only available for merchants using Shopify POS Pro, but it is definitely a must-have and worth upgrading for.

The analytics screen on Shopify POS allows you to review your daily sales report and provides insight into the following:

  • Net sales
  • Average order value
  • Average items per order
  • Top products by net sales
  • Top product types by net sales
  • Top staff by net sales
  • Net sales by payment type

It reports on in-store and online sales and compares today’s sales to the sales that made on the same day as the previous week.

Managing your sales can be done anywhere and, on the go, and if you are extending staff responsibilities, you can control exactly which staff can acquire roles and permissions for this feature. To do this, enable View analytics for device’s location if your want your staff to access the Daily Sales Report.

 

Offline and Online Integration

If you have an online and an offline store the Shopify POS will allow you to manage both sales and inventory control in one location. Time is saved because it effectively helps businesses manage different systems in one centralized location.

The Shopify POS system works by plugging the Shopify Reader into your iPad so that it can be used as the main sales device for your offline platform. Basically, your iPad has now become a payment terminal or cash register for the business.

Customers’ credit cards can be charged using this Reader and that will result in all sales records, inventory tracking, and customer information being automatically synchronized with your Shopify store/ merchant platform.

Why the focus on credit card readers?

A recent study published by the Pew Research Center depicted the growing trend towards cashless payment transactions. The report said the following:
"Roughly 3 in 10 U.S. adults (29%) say they make no purchases using cash during a typical week, up slightly from 24% in 2015."

It also found: “Customers are even less willing to pay cash when the purchase cost is more than $25.”

Plastic money is fast becoming the preferred choice of payment and if your business is not accepting credit card payments then you may be losing clients and revenue.

Using the Shopify Reader not only enables credit card payments, but it will also electronically capture your customer’s information for future marketing strategies.

 

Hardware Integration for Your Shopify Store

Shopify POS can connect with retail hardware that will help you grow your business and improve your online and in-person sales.

The hardware needs to be purchased from the Shopify Hardware Store. However, this is only available if you are in Canada, the United States, the United Kingdom, or Ireland. If you are living in another country, then there may some vendors available to assist with hardware that will successfully integrate with Shopify POS, except for the supported card reader. For instance, if you live in Australia, you can buy hardware from Gorilla Lab or POS 99.

If you are ready to upgrade your Shopify POS, start with hardware that will enable you to accept payments for cash, cards, or both. Once you have familiarized yourself with this, opt for specialized retail hardware, such as barcode scanners, cash registers, and receipt printers.

Shipping hardware is also available to ease the logistics of your sales and orders of your business. Label printers and scales will help you speed up your fulfilment process.

Depending on your type of business, the type of retail hardware you need for your Shopify POS will vary. Below is a table that offers guidance:

 

Type of Business

Suggested Retail Hardware

Pop-Up Store

iPad + card reader

Physical Store

iPad + card reader + receipt printer

Multiple Stores or a Warehouse

iPad + card reader + receipt printer + barcode scanner + cash drawer

 

Card Readers:

The card reader that integrates with Shopify POS is a device that a business can use to accept debit and credit card payments by tapping, swiping, or inserting cards, or by manually entering the card’s information.

The card reader you choose depends on where you are located, what device you are using to run Shopify POS, and the payment provider you use.

Shopify POS has several supported card readers:

  • The Tap & Chip reader
  • The Chip & Swipe reader
  • The Swipe card readers
  • The Tap, Chip, and Swipe card reader

Card readers also enable customer tips.

 

Cash Drawer

If your business accepts cash as a method of payment, then you need a reliable and secure cash drawer for your store.

Shopify supports the following cash drawers:

  • Star Micronics CD3-1616
  • Star Micronics SMD2-1317
  • Windfall Cash Drawer.

Barcode Scanner

Bluetooth barcode scanners are available for integration with your Shopify POS. They can be used up to 100 meters away from your iPad to quickly enter discount codes and to add products to the checkout cart.

Shopify supports the following Bluetooth barcode scanners:

  • Socket Mobile S700 and CHS 7Ci 1D barcode scanners
  • Socket Mobile S740 and CHS 7Qi 2D barcode scanners

mPOP All-In-One

If all of the above hardware appeals to you then the mPOP all-in-one will certainly offer an attractive option for your business. The all-in-one Star mPOP is only supported on iPads at the moment but it offers a receipt printer with an integrated cash drawer and an optional USB barcode scanner too.

 

The Bottom Line

The Shopify POS system is used by more than 100,000 merchants and the total Shopify platform sales globally is estimated at over $100 billion. The eCommerce platform is growing at a rapid rate and the numbers speak for themselves that it is certainly a valuable and profitable platform for your business.

Diving in a little deeper into adding value for your business, have a look at these recent statistics that Shopify recorded:

  • “Shopify plus merchants, with annual sales revenues from $1 million to $500 million, have seen an average year-over-year growth of 126%” (Source: Shopify)
  • “Mobile traffic now accounts for 79% of traffic and 69% of orders of all traffic as opposed to 2014, when it made up just 50.3% of traffic” (Sources: Shopify and Shopify and You Blog)

Window shoppers may become future loyal customers by simply turning to the use of Shopify POS. The app is simple to use and encourages a unique marketing strategy to drive sales by integrating administrative tasks, inventory, capturing customer details, and opening the merchant to both online and physical sales on-the-go. Customers will enjoy the merchant's flexibility when they can sell online, or in-person and perhaps new doors will open for a merchant who has never had the tools to sell at a market or pop-up store.

It is all about adding value and Shopify have opened this window wider with their POS system.

 

Sources:

https://insights.digitalmediasolutions.com/articles/shopify-growth

https://www.shopify.co.za/partners/blog/pitching-shopify-pos

https://www.businessnewsdaily.com/2566-accepting-credit-cards-increases-profit.html

https://acquireconvert.com/shopify-statistics/

 

 

 

 

 

About Andrew Durot

He is the co-founder of Ecom Experts, a Shopify focused development agency. 

Ecom Experts and Andrew's team have been focused on speed optimization - increasing the speed of over 300 stores in last year alone.

Speed Optimization is a repetitive & time-consuming task that most veteran Shopify experts try to avoid.

Andrew and his team has taken it upon themselves to maser the subject and become the largest speed optimization team on he Shopify platform even building out the only Shopify specific speedchecker tool!

Check Your Speed