6.13 Computers in the Retail Industry

Electronic Point of Sale Systems

Electronic point of sale systems are computer systems that electronically track the sales of goods in a retail environment. The bar-codes on goods are scanned at the checkout and each item is added automatically to the total bill. The computer then displays the total cost and the customer either pays with cash ( in which case the change required is automatically calculated) or by credit/debit card ( in which case an Electronic Funds Transfer is conducted).

After the transaction has finish the companies stock database is automatically updated. The database is later searched automatically and more stock is ordered automatically…

Advantages

The EPOS system allows a business to identify which products are selling well and which products are making profit. Through this identification, a business can increase the order of profitable products and reduce unmarketable inventory.

• Lower labour costs than cash
• Low risk of theft
• Fast transaction speed
• Proof of payment
• Convenience

Disadvantages

• Service fees
• Transaction costs
• Lack of privacy
• Reliance on electrical and mobile phone infrastructure
• Technical problems