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Custom POS Software Development Guide: From Idea to Implementation

Advantages of Creating a POS System for Your Business

Off-the-shelf POS suites cover the basics, but their feature ceilings show up fast – explore our legacy upgrade hub before those limits cut into sales. Building a custom POS puts every workflow in your control, letting you shape checkout logic, loyalty modules, and reporting to fit real-world needs.

For example, custom solutions:

• Save you money: custom POS systems may be more expensive initially than off-the-shelf options, but they lead to greater savings over time. A system made just for your needs sidesteps vendor restrictions and ongoing licensing fees. Plus, having your own payment gateway can cut down on regular charges and long-term costs. SapientPro, for example, offers a cost-effective POS system for Magento compared to other choices.
• Are more innovative and flexible: custom development is innovative and flexible. It keeps up with trends like AI recommendations and omnichannel payment options, so it can easily change to fit different business needs.
• Provide improved data analysis: partnering with an experienced tech vendor for data analytics gives you valuable insights into your processes and a comprehensive view of your operations. This helps you grasp market trends, improve inventory management, make informed decisions, and seize growth opportunities. Half of small businesses consider the analytics and reporting features in their POS system vital for their operations.
• Improve customer experience: a custom solution lets you adjust workflows and interfaces to fit your customers' needs. Advanced loyalty programs and personalized promotions add a personal touch and make transactions smoother. In fact, POS software with loyalty features can boost sales by up to 46%.

With SapientPro’s POS, it's easy to add discounts, coupons, and special offers right from the POS interface, significantly boosting your in-store promotions.

Top Features of B2B POS Systems

POS systems come with different modules and features tailored to specific industries. Your expertise can help you decide which functions would benefit your customers the most. Here are some common basic features.

Inventory Management

Linking your POS terminal with your inventory management system lets you track inventory in real time. This guarantees products are always in stock — a must for retail businesses. Such connection also helps understand customer preferences, so you can keep popular items stocked at all your stores.

SapientPro's POS system offers real-time inventory updates, significantly reducing the risk of overselling and running out of stock.

Various Payment Options

Your POS system should accept different payment methods like:

• Cash and checks;
• Credit and debit cards from brands like Visa and MasterCard;
• Online payments such as Apple Pay, Google Pay, and PayPal.

SapientPro’s POS provides all these payment options, making it easy for customers to make purchases. This creates a win-win situation: clients get to pay however they like, and you increase sales.

Remember to let customers use gift coupons and vouchers for payments. This can motivate them to come back to your store and earn more rewards.

Reporting and Analytics

Reporting can involve creating basic sales reports, tracking key performance indicators (KPIs), studying sales trends, and predicting future demand. They help you see what's going well and what needs improvement to enhance your business performance.

You might begin with third-party tools if they meet your needs, and then add custom features as your product develops. SapientPro’s POS system provides detailed reporting & analytics, simultaneously allowing you to customize the solution with extra functionality.

Customer Relationship Management

73% of customers now want more personalized experiences. A CRM feature in your POS system makes it easy to create customer profiles during checkout, storing details like names, contact info, and purchase history. This helps you learn about your customers' preferences and habits.

SapientPro’s POS for Magento 2 lets you offer custom prices, discounts, and gift cards, which makes your marketing efforts more personalized. You can also request extra features for all needs: our engineers will bring any idea to life.

Employee Management

POS systems often come with tools to help manage employee information. You can track their working hours, generate sales performance reports, and manage permissions. Extra features can include setting up access controls, a training mode, and managing timesheets and schedules.

Security Features

POS systems store sensitive information like credit card details and personal data, which hackers can exploit for identity theft or unauthorized purchases.

SapientPro’s POS system boosts security with features like role-based access, audit trails, encrypted payments, and safe data storage, all while following PCI DSS standards to protect your customers’ information.

How to Develop a Point-of-Sale System Step by Step

Now that we're familiar with the key integrations and benefits, let's go through the process of building a custom POS system.

Step 1. Select the Right POS System

Before you choose the best POS system for your business, let's look at its common types:

• Self-service kiosks: these are perfect for grocery stores and restaurants. They allow customers to place and customize orders on their own, without a cashier. Such kiosks typically include touchscreens, card readers, receipt printers, and occasionally barcode scanners.
• Desktop POS systems: these systems run on computers with a dedicated terminal or workstation. They often include cash registers, receipt printers, and barcode scanners.
• Mobile POS systems: mobile systems are perfect for businesses on the go, as they work on portable devices like tablets and smartphones. They come with card readers that connect to your mobile device.

Step 2. Choose Where to Store Your Data

When deciding between on-premise and cloud-based data storage for a custom POS system, consider key factors like your business needs, cost, scalability, and support. Here's a quick comparison of each:

• Cost: on-premise systems need a big upfront investment for hardware and setting up a server room. On the other hand, cloud-based systems have lower initial costs but charge ongoing subscription fees.
• Scalability: expanding on-premise systems can be complex and slow, usually requiring new hardware and upgrades. Cloud solutions are more flexible, and allow you to adjust storage capacity easily without big hardware costs.
• Maintenance: for on-premise systems, your team is responsible for maintenance, updates, and security. In contrast, cloud providers take care of these tasks for cloud solutions.

It's important to take a close look at your options and talk to experts to find the best solution for your custom system. SapientPro specializes in e-commerce & fintech solutions and provides a full-fledged POS system for Magento. Our team can set up a new POS system or tailor our existing solution to match your requirements.

Step 3. Decide on Your Point-of-Sale System Integrations

Modern POS systems can actually link up with various tools like CRM, inventory management, employee management, and payment processors. Here are some POS integrations we haven't mentioned yet:

• E-commerce integration: connecting POS software with ecommerce platforms lets retailers easily sync inventory and streamline order processing;
• Payroll: linking POS with payroll software automates wage calculations based on sales data, which reduces errors and saves time on payroll tasks;
• Accounting software: syncing POS with accounting software automates financial tasks like tracking sales, expenses, and taxes;
• Receipt printing: integrating POS with receipt printing lets retailers customize receipts with branding, promotions, and messages. For example, SapientPro’s POS lets you create personalized receipts using phtml templates. You can add store details, custom messages, or promotional content to them;
• Order fulfillment: order fulfillment systems make it easier to manage orders by managing everything from getting the orders to delivering them quickly and accurately across all sales channels.

Remember, the key to success is figuring out which specific integrations your business needs.

Step 4. Consider UI/UX Design Elements

Keep focus on two key areas of UI/UX design when developing a POS system: customer-facing features and admin panel elements.

For customers, important features include:

• Easy-to-use navigation;
• User-friendly touchscreen;
• Clear product scanning;
• Helpful user instructions;
• Multiple payment options;
• Easy error management.

Key elements for staff using the admin panel are:

• Dashboard overview;
• Simple navigation;
• Employee performance tracking;
• Access based on roles;
• Inventory management;
• Quick search and filtering.

Step 5. Start the Development of the POS System Backend

The backend of a POS system is likely the most challenging part of the project. Here are some key areas to keep in mind:

• Security measures: use end-to-end encryption to keep data transfers safe and ensure secure communication within the system;
• Scalable architecture: choose a scalable database (e.g., SQL, NoSQL) based on the POS system's needs. Improve database design and indexing for faster data retrieval;
• Integration with other services: develop secure, standard APIs to easily integrate with payment processors. Make sure they comply with the latest industry standards.

Step 6. Test the POS System

Just like any other software, a POS system needs thorough testing from different perspectives:

• Integration testing checks if all parts of the POS system work well together, focusing on how they interact and share data with other devices and services;
• Functional testing evaluates if each part of the system operates correctly by examining specific functions and features;
• User acceptance testing lets actual users test the system in real-world scenarios to ensure it meets their needs.

Never skip the testing phase when developing software for your business. This step ensures everything works as you and your customers expect.

Step 7. Launch Your POS System

Start by rolling out the system slowly in a few locations or departments to reduce disruptions. This step-by-step approach helps address challenges and allows you to improve the system using feedback from actual users.

Once your custom POS software is launched, keep an eye on how well it's performing. Collect feedback from staff and customers to hear about their experiences.

How to Build a POS System That Complies With Local and International Regulations

Security is key to a reliable POS system in retail, as it keeps your business safe and earns customer trust. Let’s take a look at what you should focus on.

GDPR Compliance

Ensure your POS software follows GDPR rules to protect customer data by:

• Using end-to-end data encryption;
• Implementing user authentication with role-specific access;
• Regularly updating security features;
• Continuously monitoring the system for threats.

Adhering to Local Tax Laws

Your POS should follow local tax regulations for accurate sales tax calculations and compliant receipts. You might need to adjust the software for specific tax rules and stay updated on any changes.

PCI DSS Compliance for Payment Processing

Protect sensitive payment data by adhering to PCI Data Security Standards, which include:

• Encrypting data during transmission;
• Using dual protection for cardholder information;
• Maintaining detailed access logs.

These measures help safeguard your business against data breaches and ensure all your operations are safe.

How Much Does It Cost to Build a POS Software System? 

Creating a POS application varies in price based on factors like the development platform, features, and third-party integrations. A basic system typically costs about $50,000, while a more advanced system can range from $65,000 to $100,000. 

Here's an example of what you'd pay for a custom POS system with various integrations based on the industry’s average rates.

The costs for using SapientPro’s POS solution are more budget-friendly.

Adobe Commerce (Cloud / On-Prem):

• First-Year License: $1,000;
• Annual Renewal: $500;
• Optional Installation Fee: $400.

Magento Open Source:

• First-Year License: $500;
• Annual Renewal: $250;
• Optional Installation Fee: $150.

Apart from a working product that is ready to support your business, you get 24/7 lifetime support and the possibility to get a dedicated team for customization and individual development. You can add anything to the POS solution: our engineers bring all ideas to life.

Partner with SapientPro to Get a Perfect POS Solution for Business

SapientPro’s POS system provides you with a top-quality solution that supports retail, e-commerce, restaurants, and all kinds of businesses. You’ll get a solution that unifies online and offline sales, providing live inventory updates to manage stock levels with ease.

If you’re looking for custom features and solutions, our engineers and UI/UX designers will help you get a tailored POS system for your company. The best part: you’ll work with engineers with over a decade of experience in fintech development. Interested? Let’s team up!