What Is An EPOS?

Date First Published: 11th September 2023

Topic: Computer Systems

Subtopic: Computer Hardware

Article Type: Computer Terms & Definitions

Difficulty: Medium

Difficulty Level: 5/10

CONTENTS

Roles Of An EPOS System
Benefits Of An EPOS System
Difference Between An EPOS and POS

Learn about what an EPOS is in this article.

Stands for an Electronic Point of Sale. An EPOS is a modern till system used by retailers to handle customer sales. EPOS systems usually consist of a combination of hardware and software, including a touchscreen computer, barcode scanner, cash drawer, and specialised software to process sales more efficiently.

The flexibility of an EPOS system allows the software to be fully customised, depending on the type of business and its specific requirements. Like how it is possible to design and develop a website that matches its specific requirements, an EPOS system can be developed that matches.

Roles Of An EPOS System

The roles of an EPOS system are to:

Read the barcode on a specific product and then record and calculate the amount the customer has to pay. An EPOS system allows all transactions to be seen instantly and automated reports can be set up to provide regular updates. In addition, prices can be automatically updated, reducing the chances of customers being charged the wrong price for an item.
Update stock levels, record customer data, and record sales details. By recording stock, businesses can easily spot trends (e.g. what is selling well and what is less popular). This helps businesses order goods from suppliers efficiently so that they don't run out or order too much.
Provide information about the performance of the business using the outputted data. This allows businesses to get a full overview of what is performing well and what is not so popular.
Create a product menu or catalogue to reduce the chances of human errors and speed up service. Most EPOS systems allow a menu of products and prices to be created and usually include images, making it easy to record a sale without making mistakes.
Accept and record payments. The EPOS system is integrated with the payment technology, making it easier for the customer to pay the amount owed. The EPOS system also takes cash and calculates change, but EPOS systems also record card and contactless payments. Also, they keep track of all customer payments and record the daily sales.

Benefits Of An EPOS System

The benefits of an EPOS system are:

Improved data gathering and collection - With an EPOS system, businesses can easily gather data and statistics, such as the number of sales, where sales are coming from, and the types of products that are selling well. It also allows businesses to look at demographic factors from the customer base, like age and gender to help businesses work out their target audience.
Improved customer loyalty - An EPOS system can improve customer loyalty. For example, offering a loyalty program can encourage customers to buy again and identify their purchasing habits, such as what products they most commonly buy.
Improved efficiency - An EPOS system can automate processes, like controlling sales, managing inventory, and managing the database, improving efficiency and increasing productivity.
Improved inventory management - An EPOS system can allow businesses to keep inventory under control by setting up barcodes on products, providing businesses with accurate transaction data and stock levels. By monitoring the inventory, businesses know when they are low on a specific product and need to order more to fulfil customer demand. It also saves businesses from ordering too much, which could lead to products becoming outdated or unusable over time.

Difference Between An EPOS and POS

Compared to the traditional POS system, an EPOS system is very different. The traditional POS system involves manual actions to process orders and inventory. An EPOS system is a modern electronic format of the traditional POS system that brings all transactional operations together and allows other aspects of a business, like demands, sales, and customer loyalty to be monitored. In addition, EPOS systems mostly operate online in a web-based setting and securely store information in the cloud, whilst traditional POS systems operate offline.