Retail POS Software: The Best Systems for Your Small Business

For small retailers, having top-notch retail POS software may seem like a luxury—but it’s a necessity. The right software streamlines everything from payment processing to inventory and sales tracking, so you're not stuck juggling spreadsheets or guessing what’s in stock.

But with so many options on the market, it can be hard to figure out where to start, and there’s no such thing as a one-size-fits-all approach. In this guide, we’ll walk you through how to pick the POS retail software that fits your small business’s day-to-day needs.

TL;DR: Working with small business POS system software

Looking for a quick rundown on the fundamentals of retail point of sale software? Here’s the info you need to know.

The must-have features of a retail POS system:

• Easy-to-use checkout interface
• Reliable hardware options, including tablets, terminals, and barcode scanners
• Robust inventory management and tracking
• Integration with eCommerce and online sales platforms
• Real-time sales reporting and analytics
• Custom loyalty program and customer management tools
• Flexible payment options for credit, debit, and mobile payments
• Secure transaction processing and PCI compliance
• Easy integration with popular accounting systems

Our top retail POS software recommendations:

• Best POS system for small retail stores: Square for Retail
• Best for online and offline sales: Shopify POS
• Best for inventory: Vend by Lightspeed
• Best customizable retail POS system: Clover POS
• Best for hybrid retail and hospitality: Toast POS

How to pick the best retail POS system for your small business:

• Evaluate your store size, product inventory, and complexity of needs
• Set a clear budget with monthly fees and hardware costs in mind
• Identify must-have software integrations (accounting, eCommerce, CRM, etc.)
• Consider ease-of-use and training for staff
• Look at the available customer support options
• Test run with free trials or demo

What is POS software in retail?

Retail point of sale (POS) software is a combination of hardware and software that helps retail stores process payments, gather sales data, track inventory, and more. Think of it as a high-tech cash register that gathers key business insights with every transaction.

Unlike general POS tools, retail POS software is built specifically for the needs of retail businesses, and often includes:

• Barcode scanning
• Inventory tracking
• Multi-location support
• Customer loyalty tools
• eCommerce options

Where something like restaurant POS software prioritizes tools for seamless dining experiences, POS systems for retail stores have more features for online sales and customer management tools. Ultimately, the software should meet your specific business needs.

Why your retail store needs POS software

For growing retail businesses, every transaction counts. Investing in POS software is a great way to stay ahead as your small business scales.

Here's how a small business POS system can level up your operations:

• Streamline transactions and the checkout process. No one wants to deal with a back-up at the register, especially during busy seasons. A good retail POS system speeds up the checkout line with easy-to-use interfaces and multiple payment options. 
• Manage and optimize inventory efficiently. You shouldn’t have to comb through spreadsheets to know what’s in stock, what’s selling fast, or when it’s time to reorder. POS software for retail stores keeps inventory under control so you can make good buying decisions and have the right products ready for customers.
• Provide actionable sales and customer data insights. Keeping track of customer habits gives you the jump on future best-sellers and seasonal trends. There’s no need to guess what people want when you’ve got the data at a glance.
• Enhance customer experience with smooth checkout. 73% of customers say that they’ll abandon their purchase if they have to wait in line for more than five minutes. Yeesh! Digital receipts and integrated loyalty programs add value to your customer experience without stretching your lines.
• Enables integration with Commerce, CRM, and accounting tools: Today’s best retail POS system software works with the tools you already use, helping you centralize operations across sales channels and departments.
• Reduces errors and improves accuracy of sales records: Automation and digital tracking help eliminate manual mistakes, ensuring your reports and financials are always up to date.

Must-have features for retail POS software

For small retail businesses, the quality of your retail POS software features can make a big difference in day-to-day efficiency and long-term growth.

When choosing a system, look for these essential capabilities:

• Easy-to-use checkout interface: Your POS should be intuitive enough that new hires and seasonal employees can pick it up quickly. A clean, user-friendly interface reduces training time and keeps up the flow at checkout.
• Reliable hardware options: Tablets, terminals, and barcode scanners help you meet customers’ needs at the till and on the floor. Make sure your POS software comes with offline capacities so sales don’t screech to a halt during a tech emergency.
• Robust inventory management and tracking: Good POS retail software keeps your shelves stocked and your inventory accurate. Real-time tracking, automatic low-stock alerts, and the ability to manage multiple product variations protect your employees from digging through the back room during a rush.
• Integration with eCommerce and online sales platforms: By 2027, 23% of retail purchases are expected to occur online. For brick-and-mortar businesses, online stores are a quick way to boost sales. POS systems for retail should sync inventory and order across channels to avoid overselling and tedious manual updates.
• Real-time sales reporting and analytics: Access sales performance, top products, and peak hours at a glance. These insights help you make smarter decisions about staffing and pricing, plus help inspire ideas for promotions.
• Loyalty program and customer management tools: Reward repeat customers with easy-to-use loyalty programs—just enter a phone number into the POS system at checkout. Customer profiles with purchase history also make it simple to resolve order issues.
• Flexible payment option: A good POS system for small businesses accepts the payment methods your customers prefer. Look for systems that handle tap-to-pay, chip cards, and digital wallets like Apple Pay or Google Pay.
• Secure transaction processing and Payment Card Industry Data Security Standard (PCI DSS): Protecting your customers’ data is non-negotiable. Your retail point of sale software should be fully PCI-compliant with built-in encryption and fraud protection.
• Easy integration with popular accounting systems like QuickBooks or Xero: Save time on bookkeeping by choosing a POS that syncs directly with trusted small business accounting software.

Best retail POS software for small business: Top 5 options

Here are 5 of our personal favorite retail store POS software:

1. Square for Retail: Best POS system for small retail stores

Square is one of the most popular POS systems for retail businesses. Known for its simple set-up and affordability, Square can accommodate small businesses from a smartphone.

Strengths:

• Transparent and affordable pricing
• Quick-and-easy set up
• Strong inventory management

Who it’s best for: Up-and-coming small retailers, boutiques, and pop-up shops who need a reliable retail POS system without the bells and whistles.

Pricing: Starts with a free plan that only charges transaction fees.

2. Shopify POS: Best retail POS for online and offline sales

Shopify POS is the leading contender for eCommerce software. Its built-in tools for online businesses integrate with an in-person POS system, allowing you to keep up with inventory and get a full look at your sales data.

Strengths:

• eCommerce integration
• Multi-channel selling
• Robust analytics

Who it’s best for: Retail businesses who need omnichannel data from online and in-store sales.

Pricing: After $1/month for 3 months trial, the Basic plan starts at $37 when billed annually.

3. Vend by Lightspeed: Best retail store POS software for inventory

Vend by Lightspeed is a retail management platform with robust POS software. Businesses with growing global customer bases or multiple locals can trust that their inventory will stay streamlined across sales channels.

Strengths:

• Advanced inventory tools
• Multi-store management
• User-friendly

Who it’s best for: Medium-sized retail stores needing detailed inventory control as they continue to scale.

Pricing: Begins at $119/month when billed annually.

4. Clover POS: Best customizable retail POS system

Clover POS is the best POS system for small businesses that want to thoroughly customize their sales software and hardware. Its customer support team is available 24/7 by phone, chat, or email in case trouble comes up.

Strengths:

• Highly customizable
• A variety of hardware options
• Lots of app integrations

Who it’s best for: Retail businesses with versatile needs and multiple product categories.

Pricing: Contact for a custom quote and free demo.

5. Toast POS: Best for hybrid retail and hospitality

Originally created as restaurant POS software, Toast is a POS system that supports retail businesses that include a food service component. For example, cafes that feature products from local creators can process payments and gather data in one place.

Strengths:

• Robust reporting
• Strong payment options
• Multi-location support

Who it’s best for: Businesses that combine retail with food and beverage operations.

Pricing: Starts at $120/month.

What is the most popular retail software?

Two of the most popular retail software solutions are Square and Shopify POS.

Square’s ease-of-use and affordability is one reason it serves over 4 million sellers in 8 different countries. As the most leading eCommerce champion, Shopify supports almost 5.1 million online and in-person stores across 175 countries.

While these two options are definitely reliable, don’t solely choose your POS software based on what’s popular. Finding what matches your business’s needs is the ultimate goal.

Choosing the best retail POS software: Step-by-step guide

Still uncertain about where to start when it comes to choosing retail point of sale solutions? Here’s a quick checklist for you.

Evaluate your store size, product inventory, and complexity

Before diving into options, take stock of your store’s setup. Are you running a single storefront or multiple locations? Do you carry a few dozen SKUs or hundreds? The right retail POS system software should scale with your store’s size and handle your personal inventory needs.

If your store sells products with variations (think multiple sizes and colors of clothing), or if you manage inventory across multiple channels, you’ll need software that’s ready for those complexities. But simpler businesses and pop-up shops may do just fine with more basic systems.

Set a clear budget

Retail store POS software pricing can vary widely, so knowing your budget is key to overspending on solutions that don’t actually hit your needs.

Look beyond just the software and factor in:

• Monthly software subscriptions (some charge per register or location)
• Upfront hardware costs (tablet, receipt printer, barcode scanner, etc.)
• Payment processing fees
• Optional add-ons like loyalty programs or advanced analytics

Identify must-have integrations

The best POS system for small businesses should seamlessly work alongside other retail management software.

Look for integrations with tools for:

• Accounting tools like QuickBooks or Xero
• eCommerce platforms like Shopify, WooCommerce, or BigCommerce
• Employee scheduling tools like Homebase or Quickbooks Time
• Customer relationship management (CRM) or marketing tools like Hubspot or Monday

A connected system saves you time on manual work and keeps all elements of your business running smoothly.

Consider ease-of-use and training for staff

A powerful system is only helpful if your team can actually use it! Retail POS software should have clean interfaces and require minimal employee training, especially if you hire seasonal or part-time staff.

Look for systems that offer:

• Simple, touchscreen-friendly layouts
• Easy onboarding or training resources
• Clear workflows for checkout, returns, and inventory updates

A smooth learning curve means fewer errors at checkout and less time spent troubleshooting.

Look at available customer support options

No one likes them, but tech problems happen sometimes—and when they do, responsive support makes all the difference. POS retail software providers offer the same level of help, and in a busy retail setting, waiting for answers just isn’t an option.

Check for:

• 24/7 live chat or phone support
• Online knowledge bases or help centers
• Access to onboarding specialists or training team

Try free trials or demos before deciding

Many providers offer free trials or live demos. Before you commit to any retail point of sale solutions, test the waters—this is the best way to see if the software feels intuitive and fits your workflow.

During your trial, test key features like:

• Running a sale or return
• Scanning items into inventory
• Checking reports and customer data

Use this chance to ask questions, see how the system handles real-life scenarios, and gather feedback from your staff. Hands-on experience helps you discover which features actually benefit your store the most.

Retail POS hardware: What equipment do you need?

Before buying hardware, it’s smart to choose your retail POS software first, then select compatible equipment that works seamlessly with it. A shiny tablet doesn’t mean much if the software itself doesn’t suit your business’s needs.

Here’s the basic hardware most retail POS systems use:

• POS terminal, tablet, or laptop
• Receipt printer
• Barcode scanner
• Cash drawer
• Credit and debit card reader

Modern retail POS system software works best with user-friendly, plug-and-play hardware that fits your space and workflow.

Frequently asked questions about retail POS software

Here are a few frequently asked questions about working with retail point of sale software:

What is the best POS system for retail?

The best POS system for retail depends on the store’s size, budget, and specific needs.

Our top picks for retail store POS solutions include:

• Square: An all-in-one option for small shops with simple setups
• Shopify POS: An eCommerce titan that integrates online and in-store sales
• Vend by Lightspeed: Offers advanced inventory tools for rapidly scaling businesses
• Clover POS: The best choice for customizable options

Can I use my laptop as a POS system?

Yes, you can use your laptop as part of your POS system. Lots of cloud-based POS software for retail businesses run through a browser or mobile app, so you don’t need expensive hardware to get started. 

Just connect a card reader, barcode scanner, and receipt printer, and your laptop can become a fully functional POS system. This can be a good starting point for smaller businesses, but as you continue to grow, it’s worth looking into upgrades.

What is the most popular retail software?

The most popular retail POS software includes Square and Shopify POS. Square is used by over 4 million sellers, many of which are small businesses, and Shopify supports almost 5.1 million online and brick-and-mortar stores.

What is POS software in retail?

POS software in retail is the system used to process sales, accept payments, track inventory, and manage customer data. It helps retail businesses streamline operations and gain real-time insights into performance. 

Most of the time, retail point of sale solutions also include hardware such as tablets, terminals, and receipt printers.

Simplify your retail operations with the right POS software

The right retail POS software helps your entire store run more efficiently. Faster checkouts, accurate payments, and real-time inventory give you more time with customers and less on screens.

Plus, with built-in sales data and reporting, you get a clearer view of what drives revenue. That means smarter and more creative decisions about how you want to keep growing your business.

Ready to upgrade your operations? Give one of our suggestions for retail POS software a test drive with your team!