Major Barriers to Established Retailers switching to Shopify POS

Tourist
10 0 13

Reporting:

  • Accounting report errors based on returns showing up on improper date and effecting closed books. https://ecommerce.shopify.com/c/shopify-point-of-sale/t/comprehensive-list-of-pos-issues-225087#comm...
  • Individual customer credit accounts associated with each customer profile: layaway's, store credit, deposit on special orders, etc.
  • Daily email analytics report showing new vs repeat customers, sales by hour, sales by team member, deposit total after fees, etc. This is a great feature of Square.
  • Cost of goods per item enabling profitability and additional reports.
  • Employee Reports:
    • Sales per hour
    • Products per sale
    • Products sold

Card Processing:

  • Support for NFC (ApplePay).
  • Offline card processing, Square can do up to 100 cards swiped offline and sends them for authorization immediately after internet is restored. 
  • Deposits takes 3 days (Square is next day on anything through 5pm).
  • Tipping option for the customer at the end of a transaction.

Staff Management:

  • Employee time tracking.
  • Ability to split a sale between 2 or more staff members. This is valuable in any commission related sales environment.

Open API:

  • Open API for more advanced email marketing segmentation and automation. Example, when a customer purchases an item from a specific category, I want to have an automatic followup targeted to their specific category of product or specific product purchased. This would be incredibly powerful when connected to a marketing automation solution like InfusionSoft. When the retailer makes money, Shopify makes money 
  • Ability for apps like Yotpo to send review requests product specific and automated just like on the website.
  • Ability for apps like Zapier or IFTTT to trigger alerts when a large sale is made, refund is performed, when sales reach a certain volume for the day or a team member reaches a certain sales volume. This is incredibly useful in management and motivation of the team.

Mac / PC Checkout Support:

  • Checkout in store using a Mac or PC. Basically enlarging the interface to show more products and making it easier to navigate 10,000+ SKUs visually. If not, assign a team member to a sale that is made in store but rang up through the backend of Shopify.

Inventory Management:

These are a few of the areas Shopify can improve to reach more established retail small businesses. This is a very substantial market, I look forward to Shopify addressing these areas to grow into a more successful POS solution. Please update the community with any progress!

Thank you! 

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Highlighted
Explorer
53 0 15

All good points indeed.  They were quick to fix a technical problem with register and printer being too slow.  Now for the hard stuff.  I hope their IPO bankers are reading these blogs to understand growth limitations if the company does not address these basic points.  On the flip side, if they do then their valuation may well be justified or higher.  

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Tourist
9 0 3

Great list Tyler!  I also think two very important issues need to be addressed:

The inability to add cost pricing to inventory items!
No customer display which is the law in California!

Shopify thinks they can push some of these issues off to app developers like Stichlabs.  Yes, more complex functions they can, but not basic functionality.  I'm not going to pay Shopify $250 a month and Stichlabs another $250 just for a two store operation when I can use a more complete competitor for less than half.  Not to mention potential sync issues and the pass the buck mentality with bugs.

I don’t have any experience with Square because of their high credit card processing fees, but you mention some great features.  Is there a reason you don’t use Square?  Maybe someday one of these companies will get it right and have all the features we want in one great product.

I also think it’s very interesting that Shopify addresses some posts, but not others.  At least they don’t delete them. 

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Tourist
10 0 13

Hey Chris!

I agree big time with the COGS and Pole Display additions!

Square has some nice features and the best part is their rapid release of new features! I think the main different is that Square is an offline first company and Shopify is an Online first company.

Costwise, the card processing fees end up being mostly a wash becuase Shopify forces the high monthly fees to get their lowest processing fees. Square has reduced my rate and has no extra overhead whatsoever.

Th reason I don't use Square is that they own your customer data. They control all CRM data and are slowly giving the retail owner access to more data (thankfully!). With Shopify, all the CRM data and order history can be funneled into excellent marketing software like Infusionsoft where you can add value to your customers by getting hyper specific with your marketing.

Sorry for the delay, just got off the phone with Shopify support and got me back on this topic, would love to help answer any other questions you have!

Thanks for making strides forward Shopify, please add Customer Profiles to the iPhone app so we can use them in place of iPads!

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Explorer
52 0 22

Great list Tyler.  

Couple more to consider

1. Gift Cards - right now when selling a gift card it is a product sale.  Then when gift card is redeemed it the product sold is also a product sale.  But I have only one cash flow positive event not two. So all product sale and order sale reports are inflated by the value of all gift card sales.  Potentially addressed through a filter but the point is that there should be no report that suggests two positive transactions took place without an offset.  At a minimum a gift redemptions should represent an exchange of such gift card for a product but only if they fix the referenced product return reporting.  Better is just to not record a product sale regarding a gift card sale and instead generate a liability (eg an IOU).  But POS would need to still count the cash flow event for closing the register.

2. Only way to get returns out of Product Sale reports is to return and then cancel the order.  Which is what we do now.  But you have to return the entire order because only entire orders can be canceled.  Therefore if a partial order return then you have to return and cancel entire order and then create a new order for what was not returned.  Not a good work around for credit card purchases.  Not hard to execute work around for cash purchases.  The work around though is still not perfect given the return reporting protocol referenced.

 

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