40 mighty myths hindering cloud POS system adoption Part- I


The cloud-based POS system is becoming a new normal for retail landscapes.

It’s popularity not only rests among the e-tailers, eCommerce stores or the brick-and-mortar stores to sell goods and handle payments via electronic transactions,

but also interconnect and manage all the inventory, suppliers, warehouses, customer loyalty programs from one to a lot many stores in the cloud.

Those risk-takers who have plucked up the courage to adopt a cloud-based POS system as a daring strategic move are now popular and successful industry giants.

Amazon, Zomato, Myntra and even Airbnb are making this part of the retail become a dire need rather than an experimental stratagem.

The irony is that…….

Where the digitalization, cloud services, industry 4.0, and Internet Of Things are the contagious buzz in the global market, many businesses are focusing on the risks and not the opportunities.

Although there stands a long list of crystal-clear merits for moving the POS operations into a cloud system, some businesses are still reluctant and hesitate to implement a cloud-based POS system.

For some entrepreneurs, these fears are becoming rigid myths that are hard to die.

As Bear Grylls once said “Being brave isn’t the absence of fears. Being brave is having those fears but finding a way through it

It’s essential to wash-off these cloud POS System myths before they turn out to be a cold metaphor.
Smash these silos!

Sugar-Coated Myths V/s True Reality


Performance based Cloud POS System myths

Myth # 1

There’s no way that a cloud-based POS would be able to handle the orders in mass at peak hours or during peak season or a big bundle of orders that the restaurant fills at a dinner time.

This has been a common cloud POS System myth that it will be unable to perform at a larger scale for the mega stores, big restaurants, and shopping malls.

Some entrepreneurs also believe it to be applicable only for the small restaurant, cafeteria or for the local retailers that have to perform less number of transactions in a day.

They think the online POS system is not for those who need to deal with just-in-time delivery of the order or for a large number of transactions.

According to them, the system may get a freeze during the busiest hours with highly affecting the turnarounds in order.

In Reality

With the cloud-based POS System, the store manager will be able to serve a large number of guests at a time without a single error in the order confirmation, receiving payment and invoicing process.

The service providers will be very much able to serve customer satisfaction with one minute turn time to deal with each order.

All they need to do is scan the barcodes, add the applicable discount schemes or promo codes, and process the payment. The POS system will auto-generate the invoice and update the inventory data.

In this way, the staff attending the customer will save time and energy to complete the point of sales much easier.

Myth # 2

Cloud-based POS system cannot manage and control the Pilferage, Shoplifting and Waste management.

Waste management is one of the hot topics that almost all the restaurants, malls, food courts, pharmacy store, and retailers keep an eye on.

Pilferage referred to as theft of items with little values and also shoplifting referred to as unnoticed stealing of goods from the stock is a sincere concern for entrepreneurs today.

Inspection rounds through physically visiting the stores or malls is what many business owners do to control the waste and theft of stock.

They believe, the cloud-based POS system is not capable to authentically and strictly keep a check on waste, pilferage and shoplifting activities at the store.

In Reality

The technology proves that this cloud pos system myth is wrong.

The cloud-based POS system is highly capable to first of all track the waste of stock and theft from the store or a warehouse.

With a well-defined barcode scanning system in place, the inventories purchased, stock displayed, the stock sold and the cold stock is managed on the cloud system.

Single error detected through the variations in stock countings will instantly update the owners about the unnoticed activities or waste incurred.

The business owner can then track the exact location, which products are wasted or stolen, the person responsible to handle that stock and even the person who stole the stock at the floor or in godowns.

Those who actually believe that cloud-based POS system is an apt option to control the waste and theft of stock get stuck on – How is it technically possible to manage this with the cloud-based POS system?

For this, the POS system is equipped with tech tools like:

  • A friendly and interactive tool for employees to report the theft
  • Monitor employee activities closely
  • Easy tracking purchase orders
  • Controlling the invoicing and cash receipts
  • Informal and surprise audits tools
  • Device security measures
  • Track and manage the business checks
  • Strict and secure inspection on the inventories

Myth # 3

The cloud-based POS system is slow and lagging as it only updates with internet dependency.

This cloud pos system myth is true in some cases as the internet speed directly affects the speed of the online POS system.

If the pharmacy store, mall, restaurant or a factory outlet has a small bandwidth or lagging internet connection, then for processing orders, running reports, processing payments and generating invoice can take a longer time.

The situation will turn exactly the way it buffers at the time of watching online videos or loading websites.

In Reality

The stores should be equipped with higher bandwidth connections.

The POS software specialist who develops the online system can help evaluate the internet speed that will be sufficient for the system to run smoothly.

Owning a wifi connection or investing in internet connectivity at the store has many benefits apart from operating the cloud-based POS system.

It can help to operate the security cameras at the store, to use emails, chats or video calling for inter-departmental communications and much more.

Myth # 4

It is difficult to search past data through a cloud-based POS system.

Many business owners have been habitual to search past data from the big pile of files.

This way of data searching has been their routine activities, that have made them pretty quick to find the right file and get the old documents.

When it comes to the cloud-based POS system, they think using the search bar and secondly searching the file from the list of search results and lastly downloading it is a highly hectic task.

Also, the speed to download the past data has internet dependency to quickly review the loaded file.

In Reality

The cloud-based POS system has advanced search options for users.

Be it searching data based on location, store, restaurants, revenues or even loyalty programs.

The online POS system can be customized as per the search options that the owner wants to feature with varied filtrations on the search bar.

Myth # 5

POS system won’t be operable offline.

When it comes to the travel, hospitality, tourism, medical, retailers, and hotel industry, many of them have a misconception that all the data will be lost as the internet connectivity goes down.

According to them, they will not be able to deal with the orders taking, process the payments and invoicing if the internet connection is slow or goes down.

In Reality

The cloud-based POS system also has an inbuilt functionality of offline mode for the users. This will help them to continue their business operations even in the case of losing internet connections.

Switching to the offline mode will help the users to take the orders, send data to other devices, and process the invoicing without internet connections.

As an when the internet is reconnected, all the offline operations will be well synced into the cloud automatically.

Get Started with Cloud POS System

Myth # 6

Partial payments for customers is not possible with online POS system.

Through the traditional process of payment, customers can pay a partial amount for the products and purchase with a promise to pay the remaining amount later.

All that a cashier has to do is record the partial payment data in the cash register.

With a cloud-based POS system, many people believe that it will turn much more difficult to accept, record and provide invoices of the partial payments.

In Reality

The customer can easily secure a product to purchase later by paying a lay-by.

By adding one option of ‘partial payment’’ for the cashier, the lay-by paid by the customers can be speedily recorded in the system.

A reminder of validity completion for the remaining payment will be linked and uploaded on the calendar for the employee to remind the customers for full payment prior to the due date.

It will make it all the more smooth for the store managers to handle partial payments through the cloud-based POS system rather than the tradition POS.

Myth # 7

The cloud-based POS is not apt for the product return and refund processes.

Many entrepreneurs think that it will all turn a costly affair to handle the refunds and returns through a cloud-based POS system.

According to them,

It will be more complicated to combine the cost of product returns, the distribution channel involved with goods return, the expense of product disposition, shipping cost, and the time required for inspecting returned goods.

They find it difficult to analyze and manage the inventory records and customers in the cloud-based POS system.

In Reality

The cloud-based POS system is strong enough to convert the shoppers into repeat consumers.

The POS system can be customized with hassle-free exchanges and returns for the customers.

With few mandatory and detailed conditions, the customer can return goods and easily get the refunds the very next day through online POS system.

The parameter to inspect the goods returned by customers will be accurately added on the app which the responsible staff has to verify.

If the product to be returned is as per the conditions, the responsible staff has to just click the confirmation button and the rest is what the system will handle.

It will auto update the returned goods in the inventory records, provide new barcode to label the product and automatically make online refund payments to the customers. This justifies that the underlined cloud pos system myth is not true.

Myth # 8

Another Cloud POS system myth is it cannot manage customer loyalty programs.

The customer loyalty programs are at the kernel of maintaining and building strong customer relationships for every industry verticals.

Some people believe in the face to face interactions, using messages or emails for the birthday greetings to the customer with a loyalty coupon or rewarding the loyalty points encouraging the customers to make more purchases.

They think the cloud-based POS system cannot be an effective medium for offering loyalty programs.

In Reality

One can include multiple loyalty programs in a custom POS system. Like,

  • A much simplified points-based loyalty system
  • Provide credits to enjoy the VIP benefits offered by the company
  • A tier-based system to provide loyalty points for customers to make more purchases later
  • Provide all-inclusive offers by indulging into partnerships with other businesses
  • Bonus points with every purchase made by the customer

The entrepreneur can also fuse-in other loyalty programs like smart gift cards or gift vouchers apart from those outlined above.

Also, these loyalty programs can systematically be linked with the invoice and payment processes in custom POS system.

Myth # 9

Delay in depositing funds to the customer’s account.

Plenty of people do have a misconception that depositing the funds in customer’s account through a cloud-based POS system will face a delay.

They consider debiting or crediting the funds from POS device, mobile, laptop or through tablets can take longer to hit a deposit on the customer’s account.

Or they fear to pay a high fee for every transaction done with the customer.

In Reality

The cloud-based POS system can be featured with integrating APIs of payment processors who provide same day deposit services to the customers.

The system admin can also schedule the deposits to occur at the set timings which will help to automatically send money to customers account the same day or later that same day.

Flexibility based Cloud POS System myths


Myth # 1

POS is just for large scale businesses.

What’s say! Do you agree with this cloud POS system myth?

The latest trending POS systems are mostly found in large companies.

This has created a blurred image in the mind of many businessmen that it is effective but limited to the big companies that have a high flow of orders and fast flow of stocking the products.

In Reality

The tech trends prevailing in the current world of competition has made it possible to offer affordable yet high-performance solutions for the startups and even for the small businesses.

Depending on the custom list of features and affordability, the advanced designing tools can craft best-suited prototypes at one go.

So, the cloud-based POS system is not just for large businesses but for the new entrants and SMEs as well.

Myth # 2

The cloud-based POS system is not flexible to adapt to any transformation in the business.

Some restaurant, retailers and even pharmacy store owners also have fear of handling the online POS system for their complex organization. This cloud POS system myth is not true.

What matters to them is the traditional methods will make them more comfortable to manage the growth, mergers, and acquisitions.

According to them, it requires the same level of efforts with implementing cloud-based POS system. As the employees need to be trained along with extra technical resources to adapt to the change.

In Reality

Developing an online POS system for the retailer, restaurant or other business requires the design thinkers to play a detailed ‘What-if’ game and come up with all the possible aspects related to the working of the POS system.

This will make the online POS platform to deliver high-performance functioning during any possible change.

It definitely saves time than the traditional methods to adapt to the change in business. Be it:

  • Product launch
  • Expansion of services
  • Geographical expansion
  • Company takeover
  • Develop a new department
  • Increase customer services
  • Or even have high flexibility to handle after effects of marketing

Myth # 3

The Traditional system of Paperwork is more comfortable than an online POS system.

Some retailers and even the restaurants believe in a traditional way of working and managing point of sales. This is one of the most interesting cloud POS system myth.

From stone age till today, the outdated paper process for order taking, tracking and invoicing is in practice at many stores.

They consider the custom POS system will not be capable enough to manage and track many orders at a time for the high number of orders or inquiries.

All they trust is the systems with paperwork that have many risks of losing the written orders, high chances of errors in recording accounting-entries and above all the lack of satisfactory customer services will end up with angry customers planning to never come back to their store.

For such type of retailers, they consider face to face interaction to be the USP to speedily tackle all the orders in peak hours. Paperwork is the easiest way out for them.

In Reality

Today, the customers expect the retailers, restaurants and other businesses to at least have an online competence to process the transaction and get an invoice through a single click button on the app.

The B2B business and B2C business can make the point of sale system an automated, easy and accurate one by transforming it into a cloud system.

The customer’s need not wait for anyone to come and take the orders or provide the invoice or take a follow-up of order dispatched and even keep the cash ready to pay for the purchase.

All they need to do is- select products/services, click ‘pay now’, make payment and get the order successfully delivered on hand or at the selected location.

Myth # 4

Suppliers will not adopt this digital change.

For the type of businesses that possess a high-priority supply chain, they have to follow the outdated inventory purchase norms that are set by the suppliers.

This happens when the suppliers have a monopoly or less competition in the market.

The purchase manager has to call or visit the supplier in person, place an order, get the order receipt, pay the deposit of half payment to confirm the order and wait for the inventory to be delivered at the business location.

This makes the business owner feel less confident about the suppliers accepting to be a part of the cloud-based POS system.

In Reality

You name any market or business trade and you see them face fierce global competition in reality.

The vendors, wholesalers and the B2B businesses are reshaping the ways by which they get the orders, deliver the orders and receive payments.

In fact! They themselves have started investing in the POS system to ease out their business processes.

With this, it will be easy for the retailers, hotels and other businesses to acquaint their suppliers to be a part of their cloud-based POS system.

Above all, it will also help the businesses to simplify the supply chain management by:

  • Avoiding the over-purchasing stock
  • Manage stock storage
  • Check stock rotations frequently
  • Verify expiry dates of inventories
  • Accurately anticipate the demand for inventories

Myth # 5

The POS system will just be accessible in the main system and not on the tablets or mobile phones in the floor area or dining room along with the printers at the payment counters.

Having a single access point of the POS system is another cloud pos system myth that exists among many retailers, pharmacy stores, travel business and restaurants.

They consider the online POS system can be used on one device and not at multiple places for multiple people where it equally needs to be used.

In Reality

The cloud-based POS system can easily sync on multiple devices anytime anywhere.

As you access emails on your tablet or computers or mobile phones, the same way you can access the cloud-based POS system with authentic login credentials.

If you need to manage many stores or have franchise chains at many locations or manage multiple restaurants, the cloud can sync data from the multiple stores.

The manager can effortlessly review and verify the reports on sales, inventory, and expenses incurred in the California store while sitting at the store in New York.

Would you like to have tailored POS system exclusively for your business?


Myth # 6

Cloud-based or Mobile-based POS system is too complicated to use.

There is also a big chunk of business owners who believe the management and processes will be much complicated and messy with the mobile-based POS system or cloud-based POS system.

Data recording in different departments will turn complicated. Like,

To record the data of pending orders in inventories, product dispatches in the distribution department, unsold products in dead stock and much more.

In Reality

The high-priority benefit of the cloud-based POS system is the integrated data that synchronizes the payment, sales, CRM, inventory, vendors, warehouses and even the labour along with the product categories at various locations.

This will help the businesses to have a consolidated idea of financial health, product valuation, and customer relation of the business.

Web-based POS or Cloud-based POS system will also make it highly simple to analyze every business component in detail.

Cost based Cloud POS System myths


Myth # 1

Cloud-based POS system is highly expensive.

The investment in cloud-based POS system is always a major cost element for any retail stores, restaurants, pharmacy store or travel businesses.

They usually fear to first of all bear high cost of POS software development and pay the payment processing fees if applicable.

While according to them, another cut on profits can include purchasing the required hardware for online POS system. This cloud pos system myth is hard to ignore for many businessmen.

In Reality

For all these conundrums, there are lot many ways the retailer can decrease the cost on POS system.

One of the most cost saving thing which the growing businesses can do is to invest in the effective though expensive POS system that will strongly support in increasing revenues with every business expansion.

One can cut cost with customizing the features in the system, less number of payment counters on the mall as the capacity to handle the billing will increase for each counter or paying software fees on monthly basis depending on the budget.

Myth # 2

The cloud-based POS system is not worth the high cost.

First of all, some restaurants and retailers feel that the cloud-based POS system is highly expensive.

But highly expensive is also followed by its unworthiness in the business process. They think the online POS system is not worth the cost charged for its development and installation.

They consider it to be extending the work which can be done simply by face to face confirmation.

In Reality

It’s high time that this cloud pos system myth should be scratched. It is more worthy than some entrepreneurs think it to be. What best it can do is,

All the stores, malls and restaurants can manage many orders at a time by coordinating the inventory, warehouse, vendors, distributors, and customers in one online platform.

The retailer can review the inventory status or manage vendors or even get instant reports on sales, goods to be replaced or returned, profits and much more with just a few taps.

The cloud-based POS system makes the list of essential task to be done cut into half as much as it is required with face to face confirmation.

This can help them spend that time progressing with the business goals.

Security based Cloud POS System myths


Myth # 1

The Cloud-based POS system is less secured to store data.

Point of Sale security is one of the critical issues that most of the businesses consider a top priority.

Many of the retailers travel business, medical stores, restaurants still believe the back-office data storage through filing the physical documents as one of the best ways to secure the data storage.

Here, they find it safe to store sensitive data like credit card details or bank details.

These stored data stay unencrypted for a longer period of time. But they feel the physical data filing to be the most secure data storage than the cloud-based POS system.

In Reality

The cloud-based POS system sends sensitive data through a highly secured network after instant encrypting data.

Also, the end users will not be accountable and fell secured from the risk of on-site data breaches.

The whole system can be monitored on a constant basis that can immediately update in case of detecting rogue access points or unknown suspicious actions on the network.

Myth # 2

With a cloud-based POS system, the data is open to every user.

Many startups, small or mid-sized companies and even the large organizations sometimes fear about data access to all the users with the cloud system.

This is why they feel insecure and hesitate to convert all the critical confidential data to the cloud.

In Reality

By choosing the right cloud provider and getting the highly secured data encryption is the best way to protect confidential and critical data.

In the current world of technological innovations, it is now possible for the POS system owners to customize the access permissions for the departments, users and even for the admin.

This will provide them with an increased level of secured data solutions for cloud-based POS system.

Myth # 3

Fear of malware.

Some people believe that with the cloud-based POS system is an attached threat of malware, bugs, server threats, and data hacking.

This is highly experienced in the teams that lack good IT experts or provision for round the clock technical support.

In Reality

The malware and data threats can be completely protected with security tools used in the cloud-based point of sale system.

Tools for intrusion detection and tools for attack prevention like Distributed Denial Of Service (DDoS) help the cloud system to be full fledge safe from the online threats and server threats.

The best part of cloud-based POS system is that it also has tools for regular testing and updating about the safety controls for the database.

Other Cloud POS System myths


Myth # 1

To choose the right digital partners for the POS system is challenging and painful.

With a large pool of POS software providers, choosing the right one for the business is very difficult.

This is the challenge which almost all type of businesses might be facing.

They get stuck at this point as they want to avoid the hassles of tiresome market researches which involves visiting the shortlisted software providers individually.

Also, many businesses have a fear of incomplete project issues, the requirement of hell lot of follow-ups, misusing the data and insecurities to share the company plan, products, and customer data with the digital techies.

So they prefer to better stay away from these hassles.

In Reality

Choosing the right digital partner has become a child’s play in current times.

All that a business looking for the latest POS software need to do is,

Get references through the magic of word-of-mouth, googling few good websites, reviewing the company testimonials or case studies, request and compare quotes. And the business gets a fair idea of the best digital techies!

They get everything done in just a couple of hours. It’s not that difficult and stressful to choose a POS software developer as it used to be a few years back.

Make sense to adopt cloud-based POS system?

Still have misconceptions about the flexibility, security or performance of the Cloud POS system?  Take a quick read at Part II.

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Vishal Nakum

Vishal Nakum is a tech enthusiast with a passion for exploring the latest developments in the world of technology. He has a keen interest in emerging technologies such as Artificial Intelligence, Machine Learning, and Blockchain, and enjoys keeping up-to-date with the latest trends and advancements in these fields. Vishal is an avid learner and is always on the lookout for new ways to expand his knowledge and skills. He is also a creative thinker and enjoys experimenting with new ideas and concepts. In his free time, Vishal enjoys playing video games and reading books on technology and science.