What Is A Point Of Sale (POS)?
A point of sale (POS) is where customers make payments to merchants for the goods or services they purchased.
The point of sale is where a merchant calculates the total amount a customer will pay for the goods or services they want to purchase. The merchant will inform the customer about the amount, prepare an invoice, and offer the various means available for them to make payment. The point of sale is where a customer makes payment to the merchant for the goods or services purchased using the merchant’s accepted means of payment.
Traditionally, businesses set up POSs near the store exits to increase the rate of impulse buying as customers leave. Impulsive buying is when a customer buys goods or services without planning. Usually, emotions trigger such purchase decisions. Depending on the store, there can be various POSs located near specific product categories to influence consumers at earlier points in the sales funnel. For instance, a supermarket’s electronics department may have a POS near the section with dedicated staff knowledgeable in electronics to guide consumers through purchase decisions.
Merchants use various devices, such as barcode scanners, cash registers, and POS systems to calculate the amount owed by a customer. Modern POS systems automate the transaction process. For instance, a store may link an item’s product code with its price, so the cashier at the POS will scan this code to process a sale. A POS system can do so much more than process sales. The software can provide crucial insight such as inventory changes, gross revenue, and sales patterns.
Point Of Sale (POS) Example
A point of sale (POS) is where the customer makes the payment for goods and services at a store. At the POS, the cashier uses a POS system, a computerized network supported by different hardware features such as barcode scanners and card payment terminals.
When you go to the supermarket to purchase groceries, you head to a section, often close to the exit, to make payment after getting everything on your shopping list. At that section, a cheerful cashier welcomes you before calculating the total amount of the things you’ve bought. They inform you about the price and give you the option of paying cash or using your debit or credit card. The section where this hypothetical transaction takes place in what’s known as a point of sale.« Back to Glossary Index