A POS inventory system is crucial for any retail, restaurant, or storefront business. Combining hardware and software to process sales and track stock in real-time, inventory systems ensure optimal stock levels and help you optimize purchasing decisions based on previous sales and trends.
We evaluated over 22 solutions to identify the top six POS systems for 2024, considering ease of use, features, scalability, support, and (of course) pricing:
Our rating (out of 5)
Key features
Minimum monthly fee
Lightspeed Retail POS
4.51
Bulk uploads, multi-location support, detailed reporting, customizable workflows
$89
Shopify POS
4.49
Seamless syncing with online store, omnichannel selling features, robust app ecosystem
$29
Toast
4.42
Real-time ingredient tracking, vendor & PO management, recipe builders, and forecast reporting via xtraCHEF, workforce management
$0
Square for Retail
4.38
Real-time inventory tracking, multi-location management, stock alerts
$0
KORONA POS
4.03
Built-in loyalty program, Multi-location management, Employee management, Processor agnostic payment processing, Anti-theft features, Customizable POS screens
$59
IT Retail
3.75
Comprehensive inventory management, E-Commerce Integration, Offline Functionality, Grocery-focused checkout
$99
Lightspeed Retail POS: Best for advanced inventory management
Overall Score
4.51/5
Pricing
4.38/5
Software features
4.75/5
Support and reliability
5/5
UX
4.38/5
Pros
- Over 50 built-in reports
- Track purchase history and segment customers
- Order and receive inventory from the POS
- Comprehensive employee management
- Supports various hardware setups
Cons
- Higher cost than many competitors
- No free plan
- Higher prices if you choose a third-party payment processor
Why we chose Lightspeed
Lightspeed POS offers comprehensive and customizable features that are particularly beneficial if you want granular control over your stock.
With Lightspeed, you’re equipped with a full suite of tools designed to streamline your inventory processes. You can track your inventory in real-time, upload up to 10,000 SKUs in bulk, and access preloaded catalogs containing over 8 million items.
It’s also particularly useful for multi-location retailers, allowing you to transfer stock between stores and view inventory across all locations in real-time. This feature is invaluable for businesses with complex distribution needs.
While Square offers basic inventory features at a lower cost, Lightspeed provides a higher level of detail and control. You’ll appreciate the detailed inventory reporting and the ability to manage product variations and bundles, features that are particularly useful for businesses with diverse product lines.
Shopify POS may excel in native e-commerce functionality, but Lightspeed wins out when you need intricate and scalable inventory management. It’s particularly well-suited for retailers who require in-depth stock control and analysis.
However, this flexibility comes with a trade-off—the system can be complex to set up initially. You should be prepared for a learning curve when first implementing Lightspeed in your business.
Of course, with a higher level of functionality comes a higher price tag—and Lightspeed is no exception. Pricing for Lightspeed starts at $89 per month, which is higher compared to some competitors. For instance, Square offers a free plan, making it a more budget-friendly option for smaller businesses or those just starting out. When processing payments through Lightspeed Payments, you’ll incur transaction fees of 2.6% + 10¢ per in-person transaction.
Also read: Best Retail POS Systems
Shopify POS: Best for E-commerce integration
Overall Score
4.49/5
Pricing
3.75/5
Software features
4.5/5
Support and reliability
3.75/5
UX
4.4/5
Pros
- Integrates directly with Shopify’s e-commerce platform
- Buy online, pick up in-store, and ship-to-customer options
- App marketplace with integrations for accounting, marketing, reporting, and more
- Pro version includes demand forecasting, low stock alerts, and detailed inventory reports
Cons
- Focus on retail; does not include features for hospitality or large-scale enterprises
- Credit card payments require internet connection
Why we chose Shopify POS
For businesses looking to seamlessly blend online and physical store operations, Shopify POS is the go-to solution. It effortlessly syncs your sales channels, providing real-time inventory updates across all platforms.
With Shopify POS, you’re equipped to offer omnichannel selling features that modern customers expect. Want to let shoppers buy online and pick up in-store? No problem. Need to ship directly to customers from your physical location? Shopify’s got you covered. These features not only enhance customer convenience but also streamline your operations.
If you opt for the Pro version, which we recommend, you’ll gain access to advanced inventory management tools. Demand forecasting helps you stay ahead of trends, while low stock alerts ensure you’re never caught off guard. This level of control over your inventory is crucial for maintaining efficient operations.
Due to its powerful e-commerce platform, Shopify POS is superior to Square and Lightspeed when it comes to ecommerce. You’ll have all the tools you need to manage product listings, process payments, and track customer orders across all channels.
When it comes to transaction fees, however, Shopify charges 2.4% to 2.7% per in-person transaction. This is slightly higher than Square’s rates, so it’s an important factor to consider in your decision-making process.
Toast POS: Best for restaurants
Overall Score
4.42/5
Pricing
4.38/5
Software features
4.75/5
Support and reliability
5/5
UX
3.75/5
Pros
- Granular ingredient, recipe, and menu control via xtraCHEF
- Easy integration of online ordering
- Integrated email marketing and loyalty programs
- 24/7 customer support through several channels
Cons
- Requires a two-year contract
- Charges a setup fee
- Higher transaction fees compared to some competitors
Why we chose Toast
As a restaurant owner or manager, you’ll find Toast POS stands out as the most convenient and efficient choice for inventory management in the food service industry. Its advanced features and tailored functionalities align closely with your unique operational needs, setting it apart from more generalized POS systems.
Toast’s pricing starts at $69 per month for the Point of Sale plan, with custom options available for more comprehensive needs. While this may be higher than some basic POS systems, the specialized restaurant features largely justify the investment. Compared to competitors like Lightspeed, which also offers advanced tools, Toast provides more industry-specific functionalities that can directly impact your restaurant’s efficiency and profitability.
One standout aspect of Toast is its integration with xtraCHEF, an ingredient and accounting software that Toast acquired. This add-on offers robust features such as recipe costing and waste management, which are not available in the standard Toast POS package.
These tools provide detailed cost tracking and waste reduction strategies, helping you minimize waste and optimize inventory management. Real-time ingredient tracking automatically updates your stock levels, giving you a clear view of usage and aiding in informed purchasing and menu planning decisions.
Additionally, Toast offers detailed sales and labor reports, as well as advanced analytics. These insights can help you fine-tune your operations, from staff scheduling to menu optimization, ensuring your restaurant runs smoothly and efficiently.
Square for Retail: Best for small businesses
Overall Score
4.38/5
Pricing
5/5
Software features
4/5
Support and reliability
3.75/5
UX
4.38/5
Pros
- Free basic inventory management plan
- Easy to set up and navigate
- Real-time updates on stock levels and sales
- Manage inventory on multiple stores from one device
- Stock alerts and automatic reordering
Cons
- Free plan lacks advanced tools
- Transaction fees not competitive for large businesses
- Not available on Android
Why we chose Square for Retail
If you’re looking for a POS system that can grow with your business, keep your inventory in check, and won’t require an accounting degree to use, Square is your go-to choice. In addition to its features—which are fairly comprehensive— you can easily put them to work.
With Square, your inventory, accounting, and sales all speak the same language. That’s what you get with Square’s seamless integrations with apps like QuickBooks and Xero. You’ll have real-time tracking at your fingertips, get alerts when stock is running low, and manage items in bulk.
When comparing Square to competitors such as Clover, you’ll appreciate Square’s transparent and cost-effective pricing structure. There are no long-term contracts or hidden fees to worry about. New users can benefit from a free Square Reader, while the Square Terminal, priced at $299, offers an all-in-one solution for payment processing and inventory management.
Also read: Best POS for Small Business
KORONA: Best for high-risk, high-volume retailers
Overall Score
4.03/5
Pricing
3.75/5
Software features
3.5/5
Support and reliability
4.38/5
UX
3.75/5
Pros
- Automated reordering, stock notifications, real-time tracking
- Customizable dashboard
- Extensive reporting capabilities
- Case-break and mix-and-match tracking
- 24/7 customer support
- Supports omnichannel sales
Cons
- Limited integrations in lower plans
- NO ID-scanning feature
- Lacks detailed variant tracking
Why we chose KORONA
As a high-volume, high-risk retailer, KORONA POS is an ideal choice. This system offers a robust set of features tailored for businesses handling controlled substances, age-restricted items, and other high-risk products, in addition to standard retail items.
KORONA POS’s processor-agnostic nature allows you to select payment processors that best suit your specific needs. This flexibility stands in contrast to systems like Shopify POS, which is tightly integrated with Shopify Payments.
When comparing KORONA POS to Lightspeed POS, you’ll notice several advantages. While both offer advanced inventory management features like real-time stock tracking and automated reorder alerts, KORONA POS provides stringent access controls for restricted items. These features are crucial for maintaining compliance and reducing shrinkage in your high-risk retail environment.
For your high-stakes retail environment, KORONA POS’s comprehensive customer support is invaluable. You’ll have access to 24/7 support through phone, chat, and email, ensuring immediate assistance whenever you need it. This level of support surpasses that of Shopify POS, which has received mixed reviews for its customer service.
If you’re managing multiple locations or planning to expand, KORONA POS offers robust multi-location management capabilities. This feature ensures consistent inventory practices and facilitates easy stock transfers between your outlets.
While you might face a steeper learning curve due to KORONA POS’s extensive functionalities, the benefits in security, compliance, and operational efficiency make it a superior choice for your high-risk, high-volume retail business. The system’s flexibility in payment processing and detailed reporting and analytics further enhance its appeal, ensuring you can operate smoothly and effectively in challenging environments.
IT Retail: Best for grocery stores
Overall Score
3.74/5
Pricing
3.75/5
Software features
4.5/5
Support and reliability
4.38/5
UX
5/5
Pros
- Grocery-specific features
- Customer loyalty programs
- Detailed reporting
- Highly scalable
Cons
- Higher upfront cost compared to many competitors
- Expensive add-on fees
Why we chose IT Retail
IT Retail is specifically designed with your industry in mind, offering features that cater to the unique needs of grocery stores.
IT Retail provides you with comprehensive inventory management tools, including automated reorder alerts, real-time stock tracking, and detailed vendor-specific reports. These features help you maintain optimal stock levels, reduce waste, and streamline your ordering processes.
IT Retail offers industry-specific solutions, including scanner scales, deli scales, self-checkout, and support for bottle deposits and EBT payments.
Lightspeed, another strong contender in the retail POS market, falls short when it comes to grocery-specific functionalities. Although it offers advanced inventory management and detailed analytics, IT Retail surpasses it with features like integrated scanner scales and weighted-item tracking. These tools are indispensable for accurately pricing produce and other bulk items in your grocery store.
With IT Retail, you’ll benefit from powerful back-office capabilities. From a single dashboard, you can manage staff, track sales performance, and generate detailed reports. This centralized control is crucial for monitoring various aspects of your grocery operations simultaneously.
Customer support is another area where IT Retail shines. You’ll have access to 24/7 technical support and on-site training, ensuring that you and your staff can get help whenever you need it. This level of support is particularly valuable if you operate extended hours and need reliable assistance to maintain smooth operations.
By choosing IT Retail, you’re investing in a system that understands the intricacies of grocery store management. Its specialized features and dedicated support make it the ideal choice for efficiently managing your inventory and streamlining your operations.
What is inventory management?
Inventory management is the process of overseeing and controlling the ordering, storage, and use of a company’s inventory. This includes managing raw materials, components, and finished products, as well as warehousing and processing such items.
The goal of inventory management is to ensure that a business always has the right products in the right quantities available at the right time. It helps in balancing the cost of holding inventory with the benefits of maintaining adequate stock levels to meet customer demand. Effective inventory management helps businesses reduce costs, improve cash flow, and enhance customer satisfaction. It involves tracking inventory from manufacturers to warehouses and from these facilities to the point of sale.
Various methods, such as just-in-time (JIT), economic order quantity (EOQ), and materials requirement planning (MRP), are used to optimize inventory levels and minimize waste and overstock situations. Implementing these strategies helps businesses avoid the pitfalls of excess inventory, such as increased storage costs and the risk of spoilage or obsolescence, while ensuring they can meet customer demand without delay.
Point of Sale (POS) solutions enhance inventory management by automating the tracking and control of stock levels. These systems update inventory in real-time with each sale, helping businesses maintain accurate stock counts and avoid overstock or stockouts.
POS solutions often include features like barcode scanning, RFID tagging, and automated reordering, which streamline inventory data entry and management. Additionally, they can generate detailed reports on sales trends and product performance, aiding in informed decision-making. Advanced POS systems also support multi-location inventory management, ensuring consistent practices and facilitating stock transfers across various outlets.
Key components of a POS inventory system
- Real-time inventory tracking: This feature allows businesses to monitor stock levels in real-time instead of end-of-day or after manually syncing an update. This ensures accurate inventory counts and reduces the risk of overstocking or stockouts. It automatically updates inventory levels as sales are made and new stock is received.
- Automated reordering: A good POS system will include automated reordering capabilities that trigger notifications or purchase orders when stock levels fall below a predefined threshold. This helps maintain optimal inventory levels and ensures products are always available.
- Detailed reporting and analytics: Comprehensive reporting tools provide insights into inventory performance, sales trends, and stock movement. These reports help businesses make informed decisions about purchasing, sales strategies, and inventory management.
- Multi-location management: For businesses with multiple locations, the ability to manage inventory across all sites from a single dashboard is essential. This feature ensures consistent stock levels, provides sales associates with inventory visibility across stores, and simplifies inventory transfers between locations.
- Barcode scanning and printing: Integrating barcode scanning and printing capabilities streamlines the process of tracking products, updating inventory, and managing stock efficiently. It reduces human error and speeds up the checkout and restocking processes.
- Ingredient-level tracking: Especially important for restaurants and food services, ingredient-level tracking allows businesses to manage inventory at the ingredient level, ensuring precise recipe costing and reducing food waste.
- Customizable alerts: Setting up customizable alerts for low stock levels, expiration dates, or discrepancies helps businesses stay on top of their inventory and take timely action to address any issues.
- Integration with other systems: A robust POS system should integrate seamlessly with other business systems such as accounting software, e-commerce platforms, and third-party logistics providers. This ensures smooth data flow and comprehensive business management.
- User-friendly interface: An intuitive and easy-to-use interface is crucial for efficient inventory management. It reduces the learning curve for staff and ensures that inventory tasks are performed accurately and efficiently.
- Scalability: As a business grows, its inventory management needs will evolve. A scalable POS system can adapt to increased inventory volumes, additional locations, and more complex operations, ensuring long-term usability.
By incorporating these key components, an inventory management POS system can help businesses optimize their stock levels, reduce costs, and improve overall operational efficiency.
Also read: Best Cloud POS Systems
Benefits of implementing a POS inventory system
Implementing a POS inventory system can transform business operations, offering numerous benefits while also presenting certain challenges. Understanding these can help businesses maximize the advantages and mitigate potential issues.
The benefits of a POS inventory system are substantial.
- Improved accuracy is one of the key advantages, as the system reduces human errors by automating data entry and stock updates, ensuring accurate inventory counts, and minimizing discrepancies. Real-time inventory management provides immediate visibility into stock availability, helping businesses optimize restocking and sales strategies.
- Enhanced efficiency is another significant benefit, as automating routine tasks such as stock tracking, order processing, and reordering saves time and reduces manual labor, allowing staff to focus on more critical tasks and improving overall productivity.
- Cost savings are also realized through accurate inventory management, which helps reduce waste and overstocking, leading to optimized stock levels and lower holding costs.
- Better customer service is achieved with real-time inventory data, allowing businesses to provide accurate information to customers about product availability, and prevent stockouts, thus enhancing customer satisfaction and loyalty.
- Data-driven decisions that optimize operations and increase profitability are possible through the detailed reporting and analytics offered by POS systems.
- Streamlined operations are achieved through integration with other business systems such as accounting, e-commerce, and logistics, ensuring a seamless flow of information and improving overall business efficiency.
Challenges of implementing a POS inventory system
Despite the benefits, there are challenges to consider when implementing a POS inventory system. Initial setup costs can be high, as they include purchasing hardware and software licenses. While small businesses can likely set up the systems themselves, larger or multi-location businesses may need to hire IT professionals for installation and setup. Training and adaptation are necessary for staff to use the new system effectively, which can take time and resources, with a learning curve before employees become proficient.
Data migration is another challenge, as transferring existing inventory data to the new POS system can be complex and time-consuming, requiring accuracy to avoid future discrepancies. Technical issues are inevitable, with potential software glitches or hardware malfunctions that businesses need to be prepared to address to minimize downtime.
Ongoing maintenance costs are also a consideration, as regular maintenance and updates are necessary to keep the system running smoothly. Depending on the system you choose, this could incur additional costs and require technical expertise. Security concerns are paramount, as handling sensitive customer and business data requires robust security measures to prevent data breaches and ensure compliance with regulations.
With proper planning and management, the advantages of a POS system can significantly outweigh the challenges, leading to improved efficiency, cost savings, and better customer service.
Choosing the right inventory management software for your business
Choosing the right inventory management software is crucial for your business’s efficiency and profitability. Evaluate your needs, such as real-time inventory tracking, automated reordering, and detailed reporting, to select the best system. Consider the benefits and challenges, including setup costs, training, and maintenance.
FAQs
