Once a simple cash register, the point-of-sale (POS) system has become a multifunctional hub for retailers.
POS devices now support tasks such as omnichannel selling, processing payments, managing customer relationships, and streamlining inventory management.
But for a POS system to work effectively, you’ll need the right combination of hardware. This guide shares how to assemble the best retail POS system for your business, with a rundown of the different POS devices and how they can benefit your retail store.
A POS device is a computerized system that records and tracks sales transactions in a retail or hospitality environment. It typically includes a monitor, a keyboard, and a cash drawer, and can be interfaced with peripheral devices such as barcode scanners, receipt printers, and customer displays.
There is a certain amount of confusion about the difference between a POS device and a POS system:
In short, your POS devices work with your POS system, whether you’re a popup shop or an established retail store, to help you sell more.
It’s important to consider the specific needs of your business. As a retail store, you’ll want a POS hardware setup that consists of, at a minimum:
A processing device is the hardware that your POS software operates on. It’s used to look up inventory, pull up customer interactions, and process transactions anywhere in-store.
This device can be any of the following:
A credit card reader or terminal accepts credit and debit cards when you tap, insert, or swipe them. External readers are usually standalone pieces of hardware; however, you can plug a card reader into your Shopify POS device to swipe cards.
Choose a card reader that lets you:
💡Tip: Skip this step by turning your smartphone into a credit card reader with Tap to Pay on Shopify POS. It connects with Shopify Payments, the native payment processor, to turn your mobile phone into an all-in-one point of sale system.
A cash drawer is a box specially designed to hold cash and keep it organized. They’re usually connected to receipt printers and open automatically when the printer is triggered to print a receipt.
Cash drawers have slots that separate bills and coins, so you can easily deposit cash and make change. In POS systems like Shopify POS, you can track your daily cash transactions and balance your cash drawer quickly.
Barcode scanners read and translate the information contained in barcodes. They are essential POS devices, allowing businesses to quickly and accurately scan products and retrieve information.
There are two main types of barcode scanners:
A receipt printer lets you give customers a record of the sale with useful information like items purchased, product prices, tax amounts, and when and where the transaction took place.
💡Tip: Avoid the need for a physical receipt printer with the email receipt feature in Shopify POS. It sends a digital version to the customer’s email address, phone number, or Shop app profile, while also helping you collect first-party customer data you can use for retargeting.
Customer-facing displays are the screens your customers see when making a purchase from you. They can be used to display the items your customers are buying, the total amount of their purchase, and any promotions or discounts that may be applied.
There are generally two types of customer-facing displays:
There are a few things to keep in mind when choosing a customer-facing display:
A shipping scale weighs packages before they’re shipped. A business that ships products from its store can use it to calculate shipping costs accurately. Shipping scales come in various sizes, so you should choose one that fits your needs.
Best for: Businesses selling at popup shops, farmers or artisans markets, and events
If you sell at events or popup shops, you’ll need a POS device that can travel with you. Tablet and smartphone devices are useful in this case.
With a mobile option, you can:
Best for: Single-location boutique businesses with one checkout counter
If you’re running a boutique store or small business with a single counter, you might only need one fixed checkout system. Combine this with a mobile POS device—one you can take around the store with you.
Here’s what that might look like in practice:
Best for: Larger retailers with high sales volume and multiple checkout lanes
A large retail store with multiple lanes and high sales volume needs a more complex POS system. The priority here is speed and efficiency—the faster you can complete transactions, the more customers you can serve.
A typical POS hardware setup for this type of retail store looks something like this:
💡Tip: Look for a POS system with employee-management functionality to handle multistore operations. Shopify POS, for example, integrates with apps like Zon Staff and Easyteam to manage staff rotas, track commission, and run payroll from your POS device.
Different types of retail operations have different needs. For example, a permanent store that relies heavily on product drops might need fast checkout to serve an influx of customers, while a popup shop might prioritize a POS device that’s portable, low cost, and easy to set up.
Consult sales reports to find your sales volume—the average number of customers you serve during your store’s opening hours. A busy store with multiple employees might need a handheld device to serve customers during the weekend. If sales volume is low, however, you could likely get by with a tablet and mobile card reader.
Make a list of the hardware your retail business relies on: barcode scanners, receipt printers, cash drawers. Check that your new POS system offers their own version that’s compatible with their software.
If you’re using your own devices, confirm compatibility and connectivity options with the new POS system. For example, if your existing barcode scanner only connects via USB, a tablet-based POS may require an adapter.
Don’t just evaluate the hardware you need for now—think about whether you’ll need to add extra devices in the future. If you plan to open a second store, for instance, it helps if your POS terminals can use the same printers and cash drawers without new hardware investment.
If your POS device breaks during peak hours, you could miss transactions or have disrupted service. Ask for the vendor’s warranty (for hardware) and uptime guarantees (for software) before committing to a new system to limit the risk.
Also consider how durable the device is, especially if it’s a portable one. The last thing you want is to accidentally drop the POS device and break it, leaving you with no way to process payments in-store. A more durable device might cost more up front, but if it lasts longer and needs fewer repairs, it’s cheaper in the long run.
The right POS devices work to provide a satisfying experience for customers in-store. However, a positive experience also depends on how well you train staff. Easy-to-use hardware also supports better customer relationship management by making it simpler for staff to access and act on customer information during a sale.
Some employee training tactics include:
💡Tip: Shopify POS has 20% faster implementation time on average compared to competitors. The user-friendly interface pulls data from your ecommerce platform, and is customizable to speed up checkout. It’s helped retailers like Tomlinson’s reduce POS training times by 32% and in-store checkout times by 56%.
POS device costs will vary based on your needs, the types of payments you want to accept (like contactless or cash), and the number of stores and employees you have.
Current average prices for POS hardware:
Check out every POS provider’s options and consider what you’ll need to run your store, including transaction fees and monthly fees for a POS software plan alongside device costs.
You may want to buy, lease, or rent devices. In the case of a popup store, for example, renting your POS hardware makes more sense than purchasing it. Negotiate bulk discounts on hardware if you’re operating multiple locations.
Add up these costs to calculate your total cost of ownership (TCO)—the all-in price you’ll pay to operate your POS system. Shopify leads the way here. Its unified data model has been proven to reduce TCO by 22% on average, while also boasting 89% lower annual third-party support costs and 27% lower annual middleware costs.
The three essential POS devices for a new store include a core processing system (for example, a smartphone that runs POS software), a cash drawer, and a credit card reader.
A POS device is any hardware used to process sales, such as a smartphone, tablet, or dedicated terminal. A POS terminal is a specific type of POS device that is purpose-built for retail transactions, usually including integrated card readers, receipt printers, and durable hardware.
You can use your own iPad as a POS device with Shopify POS and a card reader. This turns your tablet into a mobile POS system—one you can use to process payments, retrieve customer data, and track inventory.
The cost of a full POS hardware setup can be anything from $0 to $500 or more. Exact costs depend on the vendor, whether you’re leasing or buying hardware, and the number of POS devices you need.
