What Is Shopify POS and Who Is It For?
Shopify Point of Sale (POS) bridges your online store and physical retail locations into one unified commerce system. Whether you’re running a permanent brick-and-mortar shop, a pop-up market stall, a craft fair booth, or a showroom, Shopify POS lets you sell in person while keeping inventory, customer data, and sales analytics synced with your online store in real-time.
This guide covers everything you need to know to set up Shopify POS correctly — from hardware setup to payment processing, staff management, and integrating your in-store and online operations for maximum efficiency.
Step 1: Choose Your Shopify POS Plan
Shopify offers two POS tiers:
- Shopify POS Lite — included free with all Shopify plans. Handles basic in-person selling with the Shopify POS app on your mobile device. Limited reporting and no staff PINs (entire team uses same login).
- Shopify POS Pro — $89/month per location. Adds unlimited staff with PINs, role-based permissions, advanced inventory management, smart grid customization, detailed reporting, and omnichannel returns (return online purchases in-store).
Most serious brick-and-mortar retailers need POS Pro. Pop-up sellers and occasional in-person events can use POS Lite effectively. Evaluate based on your staff size, inventory complexity, and how integrated you need your in-store and online operations to be.
Step 2: Download and Install the Shopify POS App
Download the Shopify POS app from the App Store (iOS) or Google Play (Android). Log in with your Shopify credentials. The app works on iPhone, iPad, and Android tablets. For a fixed checkout station, the iPad version with a stand is the most ergonomic setup — customers can see the screen for tip selection and signature.
The POS app mirrors your Shopify product catalog automatically — any product you add to your online store appears in POS immediately. Inventory updates are real-time: sell one online, it decrements from the shared inventory pool immediately.
Step 3: Set Up POS Hardware
Shopify sells and supports a range of compatible hardware through the Shopify Hardware Store:
- Shopify Tap & Chip Reader — $49, accepts contactless (Apple Pay, Google Pay) and chip cards via Bluetooth to your iPad/iPhone
- Shopify POS Terminal — $349, standalone terminal with screen for customer-facing display, signature, and tip selection
- Shopify Retail Kit — $219 (iPad stand + card reader + dock)
- Receipt Printer — Star Micronics printers supported; Bluetooth or network connection
- Cash Drawer — connects to receipt printer; opens automatically on cash sales
- Barcode Scanner — Honeywell or Zebra scanners for quick product lookup
You can also use third-party hardware that meets Shopify’s compatibility requirements. Check the Shopify Help Center for the current hardware compatibility list before purchasing from other vendors.
Step 4: Configure Payment Methods
Shopify POS supports multiple payment types. Enable the ones relevant to your business in POS Settings → Payment types:
- Shopify Payments — lowest rates (2.4%-2.7% for in-person), funds deposited next business day
- Cash — POS tracks cash float, calculates change, and records cash sales for reconciliation
- Gift cards — Shopify gift cards work seamlessly in POS
- Custom payment types — checks, invoices, store credit (mark as custom payment for tracking)
- Split payments — customers can pay part cash, part card for a single transaction
Enable tipping in Payment settings if relevant for your business type (restaurants, service businesses, salons). Customers see the tip screen directly on the POS Terminal or your device screen.
Step 5: Set Up Your Product Catalog for POS
Not all online products may be available in your physical store. In Shopify, go to Products → [Product] → Sales channels and enable/disable each product for your POS location. This lets you maintain online-only products (digital products, items you don’t carry in-store) without them appearing in your POS catalog.
Customize your POS Smart Grid (POS Pro feature) — the grid of quick-access tiles on your POS home screen. Add your most frequently sold items as tiles for one-tap checkout without searching. Organize tiles by category for efficient navigation during busy periods.
Step 6: Create Staff Accounts and Set Permissions
With POS Pro, create individual staff accounts with PINs so each team member logs in with their own PIN. Go to Settings → Users and permissions → POS. Assign roles with appropriate permissions:
- Manager — full access including refunds, discounts, end-of-day reports
- Associate — sell, view orders, apply approved discounts; no refunds or reports
- Custom roles — define exactly what each permission level can do
Staff PINs enable accountability — every transaction shows which staff member processed it, useful for commission tracking, loss prevention, and performance management.
Step 7: Configure Local Pickup Integration
Shopify POS enables BOPIS (Buy Online, Pick Up In Store) natively. When a customer places an online order with your store location selected for pickup, it appears in POS as a fulfillment order. Staff can mark orders as ready for pickup, triggering automated customer notifications, and then mark them as picked up when the customer arrives.
This is increasingly important for retail — 30%+ of online shoppers prefer pickup when available. Enable local pickup in Settings → Shipping and delivery → Local pickup and configure your pickup locations, instructions, and notification settings.
Step 8: Set Up Inventory Receiving at POS Location
With POS Pro, you can receive inventory transfers directly from the POS app when stock arrives at your retail location. Go to the POS app → Inventory → Receive inventory. Scan or search for arriving products and enter quantities received.
You can also set up inventory transfers between locations — move stock from your warehouse to retail location or between retail stores. All transfers are tracked with sending/receiving confirmation, maintaining accurate inventory across locations.
Step 9: Run End-of-Day Reports and Reconciliation
At the end of each business day, run the End of Day report in POS Pro. This summarizes:
- Total sales by payment method
- Number of transactions processed
- Returns and exchanges
- Discounts applied
- Cash drawer balance (opening float + cash sales − cash refunds)
Count physical cash in the drawer and compare to the POS expected balance. Any discrepancies get noted. Print or email the report for your records. Daily reconciliation catches errors before they compound and maintains accurate financial records for accounting.
Step 10: Analyze Omnichannel Performance
With Shopify POS connected to your online store, you have unified analytics across all sales channels. In Analytics → Reports, filter by location to see in-store vs. online performance separately, or view unified reports for total business performance.
Key POS metrics to monitor: average transaction value, sales per staff member, conversion rate (visitors vs. transactions), and top-selling products in-store vs. online. Often, in-store and online bestsellers differ — use this insight to optimize both your physical merchandising and your online catalog.
Frequently Asked Questions
What hardware do I need to use Shopify POS?
At minimum, you need an iPhone or Android device with the Shopify POS app and a Shopify Tap & Chip Reader ($49) for card payments. For a full retail setup, add a receipt printer, cash drawer, and barcode scanner. For a fixed checkout counter, the Shopify Retail Kit or POS Terminal provides the most professional setup.
Does Shopify POS sync with my online store inventory?
Yes — Shopify POS and your online store share the same inventory pool by default. When an item sells in-store, it’s deducted from the same count that online shows. You can also set separate inventory per location if needed (e.g., warehouse stock vs. retail floor stock).
Can I use Shopify POS for pop-up shops and markets?
Absolutely. The Shopify POS app on a phone with the Tap & Chip Reader is designed for mobile selling. Set up a temporary location in Shopify for your pop-up or use your existing store location. No internet? POS has offline mode — sales are queued and synced when connection is restored.
What’s the transaction fee for Shopify POS?
With Shopify Payments (available in US, UK, Canada, Australia, and other countries), in-person transaction fees are 2.4%-2.7% depending on your Shopify plan (lower on higher tiers, free on Shopify Plus for in-person). If you use a third-party payment processor, Shopify charges an additional 0.5%-2% transaction fee.
Can customers return online purchases in-store with Shopify POS?
Yes, with Shopify POS Pro. Staff can look up online orders in the POS app and process returns for items originally purchased online. The refund goes back to the original payment method, and returned inventory updates automatically. This omnichannel returns capability is one of the key differentiators of POS Pro vs. Lite.
Final Thoughts
Shopify POS is the most seamless way to unify in-person and online retail operations on a single platform. From a single iPhone and card reader for farmers markets to a multi-location retail chain with complex staff permissions and inventory management, Shopify POS scales with your business.
For more on optimizing your Shopify operations, read our guides on inventory management, customer accounts, and tax settings to keep your retail business running smoothly.
