When you’re looking for a reliable POS system, Square and Shopify are two of the most popular choices. They each offer unique features that cater to different business needs, but how do they compare? Whether you’re running a small boutique, a restaurant, or an online store, understanding the differences can help you make an informed decision. In this blog, we’ll take a deeper look at Square and Shopify POS systems, their key features, and what to consider when choosing the right one for your business.
What are Square POS and Shopify POS?
Square POS and Shopify POS are both point-of-sale systems designed to streamline sales processes and improve business management. Square POS is known for its simplicity and low-cost entry point, making it a popular choice for small businesses. It’s an all-in-one solution that allows you to accept payments, track sales, manage inventory, and engage with customers.
On the other hand, Shopify POS is part of the Shopify ecosystem, which is primarily focused on eCommerce but offers robust in-store capabilities for brick-and-mortar retailers. Shopify’s POS integrates seamlessly with its online store platform, making it ideal for businesses that operate both online and offline.
Features to Look For When Choosing a POS System
When choosing a POS system, it’s essential to consider certain features that can impact the day-to-day operations of your business. Let’s take a look at some of the most important aspects to keep in mind.
Inventory Management
Inventory management is a critical function for any business, and both Square and Shopify offer tools to help you keep track of stock levels. Square allows you to monitor inventory, set low-stock alerts, and easily make adjustments.
Shopify, on the other hand, provides an even more detailed inventory management system with features like product variants, stock location tracking, and multi-location support. If you have a large product range or multiple stores, Shopify’s advanced inventory tools might give you an edge.
Reporting and Analytics
Both systems offer reporting features, but Shopify’s analytics are more robust. Shopify provides in-depth insights into sales, customer behavior, product performance, and more. It also includes customizable reporting options and the ability to track your business’s financial health in detail.
Square offers basic reports, including sales and customer insights, but it’s more limited in terms of customization and depth compared to Shopify’s extensive options.
Flexible Payment Options
Square and Shopify both allow businesses to accept a variety of payment methods, from credit cards to mobile payments. Square stands out with its flexibility, offering everything from simple magstripe readers to advanced hardware like the Square Register.
Shopify also supports a wide range of payment methods, but it shines when integrated with its own payment gateway, Shopify Payments, which can help reduce transaction fees. Shopify also supports third-party payment providers, offering more flexibility if you want to use your existing payment solution.
Square POS vs. Shopify POS: Key Differences
While both Square and Shopify POS systems offer excellent features, they each have their own strengths and weaknesses. Let’s break down some of the key differences.
Pricing
Pricing is one of the most significant factors in deciding between these two POS systems. Square operates on a pay-as-you-go model with no monthly fee for the basic POS system, making it a great choice for smaller businesses or startups with limited budgets. You only pay for transactions, which means you can scale your costs with your sales. In contrast, Shopify requires a monthly subscription fee starting at $39 for the basic plan, with higher-tier plans offering additional features. Shopify’s pricing is more suitable for businesses that need a more comprehensive eCommerce solution in addition to their POS system.
Versatility
When it comes to versatility, Shopify takes the lead. Shopify’s POS is built to integrate seamlessly with its powerful eCommerce platform, which means that businesses that operate both online and offline can manage everything from a single dashboard. Square, while offering a solid POS solution for in-person sales, doesn’t provide the same level of online integration and is more suited for businesses that focus primarily on in-person transactions. Shopify’s omnichannel capabilities, including integrations with social media and online marketplaces, give it an advantage for businesses that want to sell across multiple platforms.
Compliance
Compliance is another factor that businesses need to consider when choosing a POS system. Square is known for its ability to handle sales tax automatically, making it easier to remain compliant with local and state tax laws. Shopify also offers tax management features, but it may require more customization for businesses operating in multiple regions with varying tax rates. In terms of security, both platforms are PCI-compliant, ensuring that customer payment data is handled securely.
Customizability
Square is a highly customizable POS solution, especially for smaller businesses. Its range of hardware options and third-party integrations allows businesses to tailor the system to their needs. However, Shopify offers even more customization, especially for businesses that require an advanced eCommerce setup. Shopify’s platform allows for extensive customization through apps, integrations, and even custom code, making it ideal for businesses with complex workflows or specific needs. If your business needs more than a basic POS system, Shopify’s flexibility will likely be a better fit.
User Interface
When it comes to ease of use, both Square and Shopify excel in their own way. Square is incredibly user-friendly, with an intuitive interface that’s easy to navigate. It’s a great choice for small businesses and those new to using POS systems. Shopify’s POS interface is also easy to use but might be slightly more complex due to the number of features and integrations it offers. However, for businesses already familiar with the Shopify eCommerce platform, the POS system will feel very familiar and seamless.
Which POS System Should You Choose?
The decision between Square and Shopify depends largely on your business needs. If you’re a small or solo entrepreneur running a brick-and-mortar store, Square’s free, easy-to-use system might be the perfect solution. It’s cost-effective and offers all the essential features for in-person transactions.
However, if your business operates both online and offline, or if you’re planning to scale your eCommerce business in the future, Shopify might be the better choice. With its advanced features, deeper analytics, and robust eCommerce integrations, Shopify is perfect for businesses that want to integrate their online and offline sales into one unified system.
In the end, both Square and Shopify offer solid solutions for businesses, but choosing the right POS system comes down to what best suits your specific needs and goals.
Making the Right Choice for Your Business
Ultimately, the decision between Square and Shopify will depend on whether you’re looking for an affordable, simple POS system or a more comprehensive solution that integrates with an advanced eCommerce platform. Square is an excellent choice for small businesses, while Shopify shines for businesses that need extensive customization, analytics, and the ability to sell across multiple channels. Whichever you choose, both systems will help streamline your operations and ensure you’re equipped to handle transactions efficiently and securely.