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In retail, the right POS system can significantly reduce returns and exchanges. POS systems for retail can prevent inventory tracking disruptions, help you manage shipping costs and allow for easy resale by syncing items and stock across sales channels.
In this article, we’ll review the top POS systems for managing returns and exchanges and show you how to pick the best provider for your business.
Why retailers should offer returns
A hassle-free returns process is vital for customer experience and driving repeat business. Here’s why retailers should offer returns:
- Increases sales: A flexible returns policy lowers hesitation among buyers, thereby increasing sales, because they know they can change their mind about an item. In addition, retailers have the opportunity to offer exchanges and upsells. For example, they might check their POS and suggest a premium version of a product that didn’t initially meet the customer’s needs.
- Prevents disputes: Offering speedy returns helps reduce customer disputes and potential chargebacks, which can be more costly to your business than offering a speedy return.
- Improves your reputation: A frictionless returns system strengthens your reputation as a customer-centric brand, which builds trust and reduces the likelihood of negative reviews.
From the customer perspective, fast, easy refunds and exchanges are increasingly expected in today’s retail environment. Failing to offer them can quickly send would-be buyers to your nearest competitor.
Having the option to return an item effortlessly is often a core part of a positive customer experience. It helps reduce the perceived risk associated with a purchase, especially if there is uncertainty prior to buying. This reduces post-purchase regret and respects the fact that customer preferences change.
In turn, this improves trust and equity in your brand, both of which increase the likelihood of positive reviews and repeat purchases.
How to choose a POS system for managing returns
Taking the time to choose the best POS system for managing returns and exchanges can prevent major headaches further down the line, particularly as you scale. Let’s cover the five most important features to look for in your POS system.
1. Ease of use
With the right training, a POS system should feel easy to use for you and your employees. Look for an intuitive dashboard, a clear and well-designed interface and consistent navigation across terminals and devices.
2. Integration
You may want a POS system that integrates well with other key business tools like inventory management, sales reporting, accounting and customer relationship software. This can improve efficiency, enhance accuracy and reporting and elevate the customer experience overall.
3. Support
Ideally, a leading POS system would be backed by reliable, accessible tech support. Look for an option that provides fast support that is available during UK trading hours. Also ensure your POS system comes with clear onboarding documentation that will help you and your team learn how to use the system quickly.
4. Features
While it can depend on business type and size, a basic POS system should have all of the following returns management features:
- General returns
- Gift card returns
- Exchanges
- Part exchanges
- Credit notes
- Online self-service returns
Square POS is an example of a top POS system for retail that includes all of these features and more. Businesses can process returns or exchanges in just a few clicks after entering a receipt number, swiping a card or searching for a customer profile. Stock levels and accounting records are updated in real time, and the returned item becomes available for sale again.
5. Scalability
How much will your POS system cost as your retail business expands? Ask this question of all potential providers to avoid spiralling costs. Specifically, check pricing for additional terminals, staff accounts, locations and transaction volumes. Top POS systems for retail have simple per-location costs and transparent card transaction fees.
Top POS systems for retail returns and exchanges: comparison table
|
Provider |
Advantages |
Disadvantages |
Pricing |
|
Square POS |
Easy to use Comprehensive feature set for free plan Transparent pricing |
Some advanced features require paid plan |
Free: £0/month Plus: £49/month/location Premium: Custom pricing |
|
Shopify POS |
Good range of eCommerce features Accessible and easy to use |
High subscription costs compared to other platforms Geared towards online sellers |
Basic: £25/month Grow: £65/month Advanced: £344/month (Plus an additional £69/month on all plans for access to all features.) |
|
Epos Now |
Easy to use for smaller businesses Highly rated customer service |
Limited eCommerce functionality |
Contact the sales team for pricing. |
|
Lightspeed |
Comprehensive features Intuitive dashboard |
Many features only available on the most expensive plan High volume-based transaction fees |
Basic: £89/month Core: £189/month Plus: £229/month |
|
Clover POS |
Inexpensive option for smaller businesses Easy to use |
Customer service reviews are mixed |
Plans start at £9.99/month plus transaction fees |
5 most popular POS systems for retail that support returns and exchanges
1. Square POS
Key features of Square POS include inventory management, tools for omnichannel online retail (including an eCommerce website builder) and a full set of payment services, including card processing, virtual terminals and online checkout. Square POS handles full and partial returns and exchanges via a simple workflow in the POS app or desktop dashboard.
What to know
Square POS is very easy to use and offers seamless inventory syncing, transparent payment processing and a large set of secondary features like appointment scheduling and stock forecasts. Some features, such as cross-location returns and advanced eCommerce website customisation, are only available on the paid Plus plan.
Use cases
The Square POS system is used by a wide range of businesses, including small and medium retail businesses, restaurants, beauty salons, and services (appointment scheduling is included). Its transparent pricing model has also made it a top choice among enterprise events and healthcare companies.
Pricing
- Free: £0 per month
- Plus: £49 per month per location
- Premium: Custom pricing for stores that generate more than £200k per year
Square’s card processing rate for in-person purchases is 1.6% on the Premium plan and 1.7% on the Free plan. Online fees are 1.4% + 25p for UK card transactions on the Free and Plus plans.
2. Shopify POS
Shopify is best known for its eCommerce platform, but it also offers an in-person POS solution. Features include in-depth analytics, a website builder (suitable for all levels of tech experience) and unlimited POS logins on all plans. Partial and full refunds and exchanges are handled via the admin panel on desktop or the app on iPhone and Android.
What to know
Shopify has a large set of eCommerce features, is easy to use (though not as beginner-friendly as some other platforms), and setup is fast. The main downside is pricing, with more advanced features only available for extra fees.
Use cases
Shopify’s top use case is eCommerce. It offers a wide set of website-building features, including a large themes library, custom coding for advanced users, and extensive analytics.
Pricing
- “Sell in person” Starter: £5 per month per location (social selling only)
- “Sell in person” Retail: £69 per month per location
- “Sell everywhere” Basic: £25 per month per location
- “Sell everywhere” Grow: £65 per month per location
- “Sell everywhere” Advanced: £344 per month per location
Card processing fees vary but sit at 1.7% + 0p GBP on most plans. Shopify Pro costs an additional £69 per month per location (in addition to the above fees) and provides users with an advanced set of features.
3. Epos Now
Epos Now is often used by independent UK retailers and service providers like bakers and grocers. It offers a full set of in-person POS tools, and refunds are processed via the shop till or the Epos Now card reader.
What to know
Epos Now is built for in-person stores and offers reasonably priced hardware packages along with its POS software. Its customer service has received generally positive reviews. Multichannel retailers with an online presence, however, may find it limiting. You cannot migrate an existing site, and the web builder lacks advanced features.
Use cases
Epos Now primarily caters to small businesses like convenience stores, independent service providers and clothing retailers. Its straightforward interface and custom hardware packages suit many SMBs due to their accessibility.
Pricing
Pricing isn’t publicly available. Contact the sales team for information.
4. Lightspeed POS
Lightspeed is a well-known POS system with a global presence. It has a comprehensive set of features and 24/7 customer service. However, costs can quickly ramp up. The returns process is also trickier than alternatives and requires several steps.
What to know
Lightspeed is a comprehensive solution that comes with everything you would expect from a retail POS – inventory management, proprietary hardware, an eCommerce site builder, a loyalty programme and advanced staff management.
On the negative side, users need to purchase the most expensive plan to gain access to all features, and additional registers and locations will quickly increase costs. The basic plan, which has limited features, costs £89/month, which is higher than several competitors.
Use cases
Lightspeed focuses on the retail and catering sectors, and the flexible nature of the platform makes it suitable for businesses of different sizes. It also has a dedicated golf POS.
Pricing
- Basic: £89 per month per location
- Core: £189 per month per location
- Plus: £229 per month per location
Lightspeed charges a monthly transaction fee based on volume – sales of up to approximately £15,000 will incur a fee of £75, for example.
5. Clover POS
Clover targets small businesses and is known for its ease of use. Managing returns and exchanges is a straightforward process handled from the Clover dashboard on a desktop or mobile device.
What to know
Clover offers a lightweight, easy-to-use POS, with kit included, that small businesses can use to get up and running with a minimum of setup. Unfortunately, fees are not comprehensively shown on the Clover website, so retailers should be careful when evaluating costs.
Use cases
Clover caters primarily to smaller businesses in the retailing, catering and services spaces. Its monthly subscription for hardware makes it a good option for budget-conscious independent businesses.
Pricing
Pricing starts at £9.99 per month for a single terminal with a 1.49% fee for a maximum turnover of £100k. Contact the sales team for pricing for additional hardware and locations.
Manage refunds and exchanges with Square
Square POS is widely used by UK retailers for managing refunds and exchanges, with excellent reviews on Trustpilot. To process returns, you simply need to log into the POS app via a terminal or access your Square dashboard on a computer. You can then enter the receipt number, swipe a payment card or search for the customer, choosing either a full refund, exchange, or gift card reimbursement. Your inventory instantly updates across all channels, ensuring the product is available for sale.
Learn more about getting started with Square for Retail.
