The Ultimate Shopify POS Guide: Setup, Costs & Features

Running an eCommerce business that also sells in person? You need a seamless way to unify online and offline sales. That’s where Shopify POS comes in. Whether you operate a retail store, pop-up shop, or an omnichannel brand, Shopify’s point-of-sale system helps you sell, track inventory, and manage customers—all from one platform.

This guide breaks down how Shopify POS works, its features, costs, setup, and whether it’s the right fit for your business.

In this guide:

What is Shopify POS?
How Does Shopify POS Work?
What Do You Need? Shopify POS Hardware
Shopify POS Lite vs. Pro Plans
How to Set Up Shopify POS
Common Shopify POS Issues & Troubleshooting Tips
Shopify POS vs. Square: Which One is Better?
Is Shopify POS Right for Your Business?
Conclusion

What is Shopify POS?

Shopify POS is an in-store selling solution that syncs perfectly with your Shopify online store. It helps retailers manage sales, track stock levels, and engage with customers—whether they shop in person or online.

Your Shopify POS Options

Why Shopify POS?

• Sell anywhere without stock discrepancies.
• Accept credit cards, digital wallets, and cash.
• Offer in-store pickup, local delivery, and cross-channel promotions.
• Add personalized discounts, promotions, and customer-specific pricing.
• Extend POS capabilities with third-party apps.

Key Features of the Shopify POS App

The Shopify POS app transforms your smartphone or tablet into a powerful sales hub. Perfect for mobile transactions and on-the-go selling.

• Mobile payments – Accept payments anywhere in your store.
• Staff permissions – Assign roles and track employee sales.
• Smart reporting – Access real-time sales analytics.
• Discounts & promotions – Run in-store and online offers effortlessly.
• Customer relationship tools – Collect emails, send receipts, and engage post-purchase.
• Marketing automation integration – Sync with email and SMS marketing for personalized follow-ups.

New Shopify POS Features in 2025

Shopify continues to innovate in retail technology. Here’s what’s new this year:

• AI-Driven Product Recommendations – POS now suggests upsells and cross-sells based on customer purchase history.
• Augmented Reality (AR) Shopping – Shoppers can visualize products before buying, enhancing the in-store experience.
• Sustainable Shopping Insights – Merchants can track and display the environmental impact of their products.

How Does Shopify POS Work?

Shopify POS seamlessly integrates with your Shopify store, making it easier to process transactions and track sales in real time.

Here’s a step-by-step breakdown of how Shopify POS functions across key business operations:

1. Centralized Inventory Management

• Stock updates instantly when a sale is made.
• Manage inventory across multiple locations.
• Get low-stock alerts to prevent overselling.

Example: A boutique selling in-store and online eliminates overselling by using Shopify POS to track inventory across both channels.

💡 Want to keep your inventory in check and avoid stockouts? Master the art of stock management with Shopify Inventory Best Practices.

2. Integrated Payment Processing

Shopify POS makes checkout seamless by supporting multiple payment types:

• Accept credit/debit cards, digital wallets, and cash.
• Use Shopify Payments to reduce fees.
• Allow split payments (cash + card).

Example: A coffee shop using Shopify POS allows customers to pay with tap-and-go, mobile wallets, or split payments to speed up checkout.

3. Customer Relationship & Loyalty Management

• Save customer purchase history for personalized marketing.
• Integrate loyalty programs and offer gift cards.
• Automate email & SMS follow-ups.

Example: A fitness store running a rewards program sees higher retention rates as customers redeem points both online and in-store.

4. Flexible Order Fulfillment

Modern shoppers expect convenience and flexibility. Shopify POS makes it easy to fulfill orders based on customer preferences:

• Offer Buy Online, Pick Up In-Store (BOPIS).
• Enable local delivery and ship from store options.

Example: A home decor store using Shopify POS increases foot traffic by 25% after offering Buy Online, Pick Up In-Store.

5. Staff & User Management

Shopify POS empowers teams with features that optimize employee roles and track performance.

• Control employee access to discounts and refunds.
• Track staff sales performance.

Example: A sneaker retailer boosts sales after discovering that their top-performing employees engage the most with customers—leading to better training programs.

6. Advanced Reporting & Analytics

Shopify POS gives merchants real-time sales data to make better business decisions.

• Track revenue trends and product performance.
• Compare sales across store locations.

Example: A cosmetics store analyzes sales data and redesigns its in-store layout based on top-performing product categories.

7. Customization & App Integrations

Every business is different—Shopify POS allows merchants to customize their setup with third-party apps and built-in tools.

• Automate inventory restocking with Stocky.
• Sync marketing campaigns with Klaviyo or Mailchimp.
• Personalize checkout flows with add-ons.

Example: A pet supply store uses Shopify POS and Mailchimp to automate product recommendations based on past purchases.

What Do You Need? Shopify POS Hardware

Your Shopify POS setup isn’t complete without the right hardware. Here’s what you may need:

Hardware	Purpose
Shopify POS Terminal	All-in-one payment processor
Card Readers	Accepts credit/debit payments
Barcode Scanners	Speeds up checkout & inventory management
Receipt Printers	Provides printed receipts for customers
Cash Drawers	Securely stores cash for in-person sales
iPads & Tablets	Used as POS registers for checkout
Tap & Chip Card Readers	Enables contactless payments

Can You Use Shopify POS on a Computer?

Yes! While Shopify POS is mobile-first, you can manage transactions and inventory from a desktop.

Shopify POS Lite vs. Pro Plans

Shopify POS Cost Breakdown

• POS Lite: Free with all Shopify plans.
• POS Pro: $89/month per location.
• Hardware Costs: Varies by device.

Is Shopify POS worth it for small businesses?

If you run a small retail shop, POS Lite is sufficient. For multi-location businesses, POS Pro offers better control.

How to Set Up Shopify POS

Setting up Shopify POS is straightforward. Follow these steps to get started:

1. Download the Shopify POS App

• Install the Shopify POS app from the App Store (iOS) or Google Play (Android).
• Log in with your Shopify credentials to sync your store data.

2. Choose Your Hardware

Ensure seamless transactions with the right tools:

• Card readers – Accept chip, swipe, and contactless payments.
• Barcode scanners – Speed up checkout.
• Receipt printers – Provide digital or printed receipts.
• Cash drawers – Secure in-person payments.

If using Shopify Payments, connect your card reader for seamless transactions.

3. Configure Payment Methods

• Enable credit/debit card payments, cash transactions, and mobile wallets.
• Set up Shopify Payments to reduce transaction fees.

4. Set Up Taxes and Shipping Preferences

• Configure tax settings based on your location.
• Enable in-store pickup and local delivery options if applicable.

5. Customize Checkout Settings

• Add custom discounts, receipt branding, and tipping options.
• Set up customer loyalty programs and email collection at checkout.

6. Test Transactions and Go Live

• Process a few test transactions to ensure the system is working properly.
• Train your staff on how to use Shopify POS effectively.

Common Shopify POS Issues & Troubleshooting Tips

1. Card Reader Not Connecting

• Ensure Bluetooth is enabled.
• Restart the Shopify POS app.

2. Inventory Not Syncing Properly

• Check for SKU mismatches between POS and Shopify.
• Run an inventory reconciliation report.

3. Slow Checkout Process

• Upgrade your internet connection.
• Use a Shopify-compatible barcode scanner for faster scanning.

Shopify POS vs. Square: Which One is Better?

Shopify POS isn’t the only option—Square is a strong competitor. Here’s how they compare:

Feature	Shopify POS	Square
Best For	Shopify store owners	Small businesses, restaurants
Monthly Cost	$0 – $89/month	Free – $60+/month
Inventory Syncing	✅	✅
eCommerce Integration	Best for Shopify users	Via Square Online
Hardware Options	Extensive	Wide range
Advanced POS Features	✅	✅
Custom Loyalty Programs	✅	✅

Who Should Use Shopify POS vs. Square?

• Choose Shopify POS if you’re already using Shopify for eCommerce.
• Choose Square if you need a general POS for non-Shopify stores.

Is Shopify POS Right for Your Business?

Shopify POS works best for: 

✅ Retailers who want an integrated online/offline store.
✅ Pop-up shops that need an easy mobile selling solution.
✅ Omnichannel brands looking for advanced inventory control.

Not sure if Shopify POS is the right fit? Consider alternatives like Square, Clover, or Lightspeed.

Maximizing Success with Shopify POS

Shopify POS is more than a checkout system—it’s a powerful tool for syncing your sales, managing inventory, and growing your business.

Whether you’re a small shop or a multi-location retailer, having the right POS setup is key to smooth operations and higher revenue.

Need Shopify POS Setup Help?

Future Holidays can optimize your store for growth. Contact us today!