Differences between Point of Sale and Point of Purchase

Differences between Point of Sale and Point of Purchase

Category : Blog

An increasing number of retail display options are now available for retailers, which may make it confusing for both the seller and the buyer. Though one might be tempted to think that there is not much to compare while talking about point of sale vs. point of purchase, there are a fair number of subtle differences, in fact.

Why it is important to know the differences?

We live in an era of multichannel retailing, in which promotional strategies include both POS and POP activities. Things are constantly evolving in this world, which also means that you need to look at virtual shopping carts, in case you haven’t already done so. It is vital for you to move ahead of a basic understanding of point of sale vs. point of purchase, for the sake of business growth. Do not think that simply by looking at POP displays the customer will automatically buy advertised products.

POS software solutions are present exactly where customers stand in queues to pay for their items. This is the last stage of purchase where individuals use debit cards, credit cards or vouchers to collect items present in their cart. A POS is also present in an e-commerce store in the form of a virtual shopping cart, and is not just seen in a conventional brick-and-mortar store. In short, POS systems are concerned with closure of sale.

In contrast to the above, Point of Purchase signifies the time when the customer meets a product for the first time. Though it might be referring to a place in terms of the literal word, POP is not actually a specific location within the brick-and-mortar store. The best Point of Purchase providers look to highlight certain products, which could either be a respectable brand or a new product. Customers here get to obtain more information about a product, and if it meets their needs, they buy the same.

A difference between POS and POP lies in terms of the context in which both terms are used. POS refers to description of a store from the customer’s perspective. This is the exact point where a sale is facilitated and the buyer’s payment is received. On the other hand, if one considers the retailer’s perspective, POP describes the area for product placement, or the design of the same. At the POP, you will be able to see other promotional activities as well, such as the irritating employees selling credit cards!

Benefits of Point of Sale

  • Controlling Inventory - An effective inventory management system will always ensure that you have the right stock at the right time. Intelligent ordering decisions can be made not just on the basis of consumer behavior but also historical data.
  • Lesser time spent on Administration - Restaurant POS software will be able to generate important reports for you to make profit-making decisions within quick time. It pays to have software that is easily installable and also easy to use.
  • Help in marketing efforts - POS solutions can help you come up with various marketing campaigns. In today’s time and age, when information captured is used to personalize the shopping experience, customers are invariably satisfied.

Benefits of Point of Purchase

  • The number of possibilities with respect to POP displays are endless
  • They generate tremendous aesthetic appeal
  • They help boost sales since you are displaying products where the customer is already ready to pay
  • POP is highly affordable - One can have custom printed vinyl displays at highly affordable costs.
  • They enhance brand awareness

Most consumers are getting promotional messages on their smart phones these days, while picking up their favorite products off the shop’s shelf. If brands are able to combine unique collateral such as banners with a video on usage, as an example, it would create a great impact on any customer’s mind.


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