Shopify POS Pricing: Is It Worth The Try?

In today’s context, a business just can’t rely on a single sales channel but multiple at once to ensure a fruitful cash flow and steady revenue stream. That’s why we have seen the rise of various POS systems on the market such as Square, Lightspeed, Toast, Vend and POS Go by Shopify. 

In this blog, let’s explore the Shopify POS pricing, what benefits they bring and popular POS systems on the market. Among all POS systems, a shining example of a great and flexible one we can think of is Shopify POS, which is a system that empowers businesses to manage both their online and offline sales from a centralized platform. 

Furthermore, Shopify POS pricing offers flexible plans to accommodate businesses of all sizes, providing options that align with their specific needs and budgets.

Outline

• What exactly is POS?
• How Shopify POS Works
• Pros and Cons of Using Shopify POS
• Pros
• Cons
• Shopify POS Pricing: What's on the Plate?
• Shopify POS Software System Cost
• Hardware Cost
• Transaction Fee
• Additional Fees (If Applicable)
• Real Testimonials from Our Customers
• Closing Thoughts

What exactly is POS?

We can think of POS as the online platform or system where the final transaction and payment for goods or services happen. Unlike the traditional, direct way of transaction, the point of sale in ecommerce is online, mostly occurring on a website or mobile application. Typical components of POS in e-commerce include a shopping cart system, a checkout process, and a payment gateway. 

It is often the final step in the customer journey before completing a purchase, and it is where the customer provides their shipping and billing information, selects a shipping method, and confirms the purchase.

Ecommerce POS systems will facilitate secure payment processing, order management and inventory tracking as well as create a seamless and handy checkout experience, allowing them to buy goods and services online without having to go to physical stores.

How Shopify POS Works

Centralized order management

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• With a POS system, you can manage all orders from a single platform, regardless of the sales channel. For businesses with multiple locations and sales channels, this is extremely crucial to ensure smooth operation and help the team understand which product/channel is selling well and which item needs to be restocked. Plus, with a POS, you can guide customers to locations with available stocks if your current location is currently unavailable. 
• POS can also help you view and track orders, inventory levels at the same time, which can help business owners save the hassle of checking manually and making costly mistakes. As a result, your business can enhance the order fulfillment process. 

Streamlined and secure checkout process

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• The checkout page is where your conversion rate either dies or rises! In fact, only 25% of customers actually make the purchase after adding an item to the cart. This striking reality says that customers want things to be simple yet informative when it comes to shopping and complex processes will make them abandon the cart. 
• That’s why having a streamlined yet simple checkout process is important to secure a purchase from your customers. The benefit a POS system brings is that it can simplify the payment and shipping options, providing a smooth and hassle-free checkout experience for customers. 
• At the same time, POS can securely process payments and mitigate the risk of fraud. Instead of dealing with various payment methods and the hassle of accommodating each of them (a card reader, managing cash and loose change,..) POS can handle most payment methods and integrate with PayPal, ApplePay, ect 

Inventory management

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• No matter the business size, overstocking and out stocks are equally damaging. Here’s a number to prove it: Overstock and out-of-stock costs retailers $1 trillion each year, forcing big names in the retail industry such as Target and Gap to release deep sales campaigns and tell customers to keep return orders simply because the cost of keeping items in storage is too high
• That’s why we must do everything we can to ensure optimal stock levels and avoid stockouts. Besides strategic planning and demand forecasting, there’s another solution for businesses: Using a POS system to track inventory across multiple channels, including online and in-store sales, to maintain accurate stock records.

Improved business planning

• The way a POS can assist with your business planning is that it gathers valuable data such as accurate stock numbers, sales numbers, average order value as well as customer purchase history. From this, you can identify which item is your best seller and have the plan to push slow items 
• By this, you can run your business with data-driven decisions to optimize product offerings, marketing campaigns, and overall customer experiences.

Enhanced customer experience

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• With a POS system, your customers can make purchases anytime, anywhere. No matter the style of their shopping style (online, offline, pickup,..) payment has been made easy with various payment options such as cash, debit card, credit card. The speed is also faster and the process is more secure. By providing a seamless and convenient shopping experience, your customers are more likely to become satisfied as their needs can be fulfilled right on the spot! 
• Not to mention, you can store customer data in one place, making it easier to recognize them and their purchase history as well as spending habits. With these valuable data saved, your business can serve them better, giving your service a personal touch, therefore enhancing the customer experience..

Time and cost savings

• Last but not least, a POS can automate various processes, such as order management and inventory tracking, and will help reduce manual labor. 
• In the long run, owning a POS will result in efficient operation and improved productivity. By this, your business can be up and running smoothly with less work, allowing you to spend more time on marketing, R&D and not just be stuck in fulfilling orders. 

Pros and Cons of Using Shopify POS

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Pros

• Seamless Integration: Shopify POS integrates seamlessly with the Shopify e-commerce platform, allowing for unified inventory management and synchronized sales data across online and offline channels.
• User-Friendly Interface: The intuitive design and user-friendly interface of Shopify POS make it easy for merchants to navigate and operate the system, reducing training time and ensuring efficient operations.
• Extensive App Ecosystem: Shopify offers a vast app ecosystem, providing a wide range of add-ons and extensions to enhance the functionality and customization options of the POS system.
• No monthly subscription: Shopify POS Lite (Basic Shopify POS function) is included with every Shopify pricing tier (except from the Shopify Starter). Thus, as long as you already have a Shopify plan, worriless about the POS fee.

Cons

• Higher Cost: Compared to some alternative POS solutions in the market, Shopify POS may have a higher cost, especially when factoring in hardware expenses, transaction fees, and potential additional fees.
• Limited Offline Functionality: Shopify POS heavily relies on an internet connection for real-time updates and functionalities. You should ensure stable internet connectivity to avoid disruptions in service.
• Customization Limitations: While Shopify POS offers a range of customization options, if your business has complex requirements, then you may find certain limitations in terms of customization flexibility.

Shopify POS Pricing: What's on the Plate?

Shopify POS Software System Cost 

Shopify offers two plans for their POS software: POS Lite and POS Pro. Each plan varies in terms of features and pricing, catering to businesses of different sizes and needs. You can choose the plan that aligns best with their requirements and budget.

• Shopify POS Lite: Luckily, this plan is already equipped in all Shopify paid plans (Basic, Shopify and Advance) so you won't have to pay a single more penny to have a POS system integrated in your store (not including transaction fees for every transaction, the fee is mentioned below).

Shopify POS Lite gives you all the basic functionalities in a POS, so you can use it if you don't have any special requests or custom orders.

• Shopify POS Pro: While Shopify POS Lite plan is suitable for occasionally selling online in person, Shopify POS Pro is definitely the choice of retail businesses that regularly sell in person. 

The plan offers more advanced features like faster workflows for exchanges, discounts, local pickup, stock transfers, and more. You can also have more control over staff permissions (up to 15) with unlimited POS PINs and custom roles.

For the POS Pro, you’ll need to pay $89/month for each location, or $79/month if you choose to pay annually. On the other hand, if you are already in Shopify Plus, then pay nothing more because the Shopify POS Pro is included in your Shopify Plus.

Hardware Cost

In addition to the software system cost, you need to consider the cost of hardware required for Shopify POS. This includes compatible devices such as iPads, card readers, barcode scanners, and receipt printers. Shopify provides a range of recommended hardware options to accommodate various budgets and preferences. These are the price range of the Shopify POS hardware for your information or you can check it here:

Retail kit: $219

Barcode scanners: $229 to $329.

Label printers: $299 to $499.

Receipt printers: $299 to $369.

Cash drawers: $139 to $159.

POS Go (with case): $429.

Transaction Fee

Shopify charges a transaction fee for each sale made through their POS system. The fee varies based on the selected plan, with lower transaction fees available for higher-tier plans. You should factor in this cost when evaluating the overall expenses of using Shopify POS.

Additional Fees (If Applicable)

Depending on the scale and complexity of the business, additional fees may apply for specific features or requirements. These fees can include the number of POS terminals, the number of store locations, the number of users accessing the system, and any add-ons or apps that are integrated into the Shopify POS ecosystem. It's essential for you to carefully consider these potential additional costs to make an informed decision.

Real Testimonials from Our Customers

With many choices of POS hardware and systems, it may be hard to calculate and find the most suitable one that is convenient and fits the budget. That's why Shopify POS GO is one of the most popular ones for its all-in-one feature (you literally just need a POS GO and probably a protection case to function all the transaction stuff).

Instead of speaking too much of it, our customer gave us his real testimonial based on his experience with Shopify POS GO. Let's see what it can do:

Closing Thoughts

In conclusion, Shopify POS is a powerful and efficient solution for any merchant looking for a complete way to enhance their in-store and online operations. While evaluating the pricing of Shopify POS, it's essential to consider the overall value it brings to your business. The higher cost compared to some alternatives is justified by the extensive features, seamless integration with the Shopify platform, and excellent customer support that Shopify offers.

Furthermore, the user-friendly interface and intuitive design make it easy for merchants to navigate and operate the system without extensive training.

However, this pricing might make Shopify POS a drawback to some merchants seeking low-budget options. There are various alternatives in the market, so just list out clearly your business's specific needs and consider Shopify POS as a possible option.

The decision is up to you, wisely find the most suitable way to take your business to the next level while enjoying the journey!