A recent report by Zion Market Research indicates the POS market was valued at more than $45 billion last year. POS revenue is projected to reach $98.27 billion by 2022, growing 13.5 percent in the next five years. So – while eCommerce and online sales are certainly growing, retailers cannot forget to integrate point-of-sale into their omnichannel strategy or risk losing out on an important revenue and growth opportunity.
Point-of-sale is becoming more prevalent because of the rise of cashless transactions and increase in use of mobile and wireless payments like Square and Apple Pay. Verticals like retail, hospitality, healthcare, warehousing and entertainment are among the top industries driving this trend – according to the report.
So with more and more companies focusing their roadmaps to 2020 on investments in eCommerce and online retail – how can POS transactions be integrated into strategic visions?
According to Internet Retailer, 56 percent of consumers say that they have used buy online, pickup instore at a major retailer. Customers like this option because it saves on shipping – and retailers like this option because it gets people in the brick-and-mortar door that they know are inclined to shop online as well – a valuable omnichannel customer. But this functionality is expanding to mid-market and smaller retailers as well, thanks to systems that remove the large ROI barrier to implementing OMS systems with BOPIS capabilities. Initial investment in an OMS system now crosses many business units due to the omnichannel nature of today’s transactions – so finding a system that integrates online with POS systems will provide better growth and return for the future.
Tying online more closely in store is a top priority of major brands. But smaller brands and mid-market companies that have both online and physical presences can benefit from instore fulfillment. Instore fulfillment means that a customer can order online, and instead of the entire order needing to be kept in a warehouse – the associates will be notified at the POS to pick-pack and ship the online order to the customer if there is no stock on the warehouse. This allows companies to cut down on warehouse space and man hours needed, as well as cut down on overstock – all while providing online shoppers the same variety they would find with all stores at their fingertips.
The reverse side of instore fulfillment is the ability to order out-of-stock sizes or options from the store directly from the warehouse to customers that are shopping in a physical location. When a customer leaves the store without finding what they need – it’s very unlikely that they will enter the online store to buy later. Encouraging customers to order from an associate at the POS or from a kiosk can help convert consumers in these situations.