Shopify POS: What it is, how it works and which hardware to use

When your online store and shop floor don’t match up

Running both an online store and a physical retail space can be seriously rewarding, but it’s rarely simple. When your inventory, orders and customers all live in different systems, it can get messy.

Suddenly you’re chasing missing stock numbers, and trying to explain why one report says one thing and another says something else entirely. When you care about accuracy and a smooth, consistent brand experience across every channel? Those disconnects can slow down the growth of your business.

At that point, you’re not just managing sales — you’re managing workarounds. This means extra admin, manual updates and more room for error. And the more your business grows, the more noticeable those gaps become. You may be using POS right now, but how well is it working with your Shopify store? You may even be considering moving platforms, but need one that handles POS well.

In this article, we’ll look at what to consider when choosing a POS system for Shopify — what matters, what to avoid, and how the right setup can simplify your operations rather than add to them.

What is Shopify POS?

Shopify POS (Point of Sale) is Shopify’s built-in system for selling products in person, whether that’s in a retail store, at a pop-up, or during an event. It works hand in hand with your existing Shopify store, using the same product catalogue, inventory data, and customer information you already manage online.

When you use Shopify POS, everything syncs automatically. If a product sells in-store, your online stock updates in real time. When a customer makes an online purchase, that same profile and purchase history are instantly available at the till. Orders, returns, and customer details all flow between your digital and physical stores, giving you complete visibility over your business from one dashboard.

Instead of switching between tools or worrying about discrepancies, you get accurate, up-to-date insights on what’s selling, who’s buying, and where. That means faster decisions, simpler reporting, and a more consistent customer experience, no matter how or where people choose to shop with you.

How does Shopify POS work?

Once you’ve decided to start selling in person (or start using Shopify POS to strengthen in-person sales), getting Shopify POS up and running is surprisingly straightforward.

The system is designed to integrate seamlessly with your existing Shopify setup, so most of the heavy lifting, like syncing products and managing stock, happens automatically.

Here’s a simple step-by-step look at how it works.

Step 1: Install the Shopify POS app

The Shopify POS app is available for iOS and Android devices. Download it from the App Store or Google Play, log in with your Shopify account, and choose the retail location you want to link it to. Once installed, you can start processing sales straight away from your phone, tablet, or Shopify POS Go device.

Step 2: Add and sync your products

One of the biggest time-savers with Shopify POS is that your products and inventory sync automatically from your Shopify admin. There’s no need to create duplicate listings or manually track stock, everything you sell online appears instantly in your POS system. Any updates you make, such as changing prices or adjusting quantities, will reflect across all channels in real time.

Step 3: Connect your POS hardware

Shopify POS works with a range of hardware accessories to help you build a checkout setup that fits your business. You can connect Shopify card readers, receipt printers, cash drawers, and barcode scanners via Bluetooth or Wi-Fi. Shopify’s own hardware is plug-and-play, but the app also supports compatible third-party options if you already have equipment in place.

Step 4: Take payments in person

When you’re ready to start selling in person, Shopify POS lets you accept payments directly through Shopify Payments for a fully integrated checkout experience. You can take contactless, chip, and swipe payments using Shopify’s card reader or POS Go device.

If you prefer, you can also connect an external payment processor, though Shopify Payments offers the smoothest experience with automatic reconciliation and simplified fees.

Step 5: Track and manage everything from one dashboard

Once sales start rolling in, you can track performance across all your sales channels from a single dashboard. Shopify automatically combines your online and in-person transactions, giving you unified reports on revenue, products, staff performance, and customer trends.

Why retail brands love Shopify POS

Shopify POS isn’t just popular because it’s easy to set up, it’s loved by retailers for how effortlessly it ties every part of their business together. Whether you’re running an independent shop, a multi-location store, or a series of pop-ups, Shopify POS gives you the tools to manage both online and in-person sales without needing to switch between separate platforms.

Real-time inventory management

With Shopify POS, your inventory updates automatically as sales happen, whether they’re online or in person. Sell the last size of a product in-store? It’s instantly marked as sold out online.

This real-time syncing eliminates the risk of overselling and saves hours of manual reconciliation, ensuring you always know exactly what’s in stock and where.

Centralised customer profiles

Every sale, online or offline, contributes to a single, unified customer profile.

Shopify POS connects each transaction to that customer’s history, so your team can see what they’ve bought before, apply loyalty rewards, or send tailored follow-ups. This makes it easier to build long-term relationships and deliver a consistent brand experience across every touchpoint.

Omnichannel fulfilment options

Shopify POS fully supports click and collect, local delivery, and ship-to-customer options, giving shoppers the flexibility they expect. Whether someone buys online and collects in-store, or discovers a product in person and orders it for home delivery, everything runs through one system.

This flexibility helps retailers provide a smooth, convenient shopping experience.

Unified reporting and analytics

All of your sales, performance metrics, and insights live in one central dashboard.

You can quickly track which products are performing best, compare sales across locations, and identify trends without exporting data from multiple systems. These unified analytics make it easier to plan stock levels, forecast demand, and make data-driven decisions that fuel growth.

Staff permissions and performance tracking

Shopify POS makes team management simple. You can assign roles and permissions to staff members to control what they can access, from refunds to discounts to reports.

Performance tracking tools also let you see how each team member contributes to sales, helping you reward top performers and identify areas for training.

Reliable and secure checkout

Even the best systems experience downtime, but with Shopify POS, you can keep trading offline if your internet drops out. Your transactions are stored securely and sync automatically once the connection is restored. Combined with Shopify’s robust payment security, this ensures every checkout is both smooth and secure, keeping your customers’ trust and your business running without interruption.

Hardware for Shopify POS

Choosing the right hardware is key to getting the most out of Shopify POS.

The beauty of the system is its flexibility, whether you’re running a pop-up, a permanent store, or multiple locations, there’s a setup that fits your needs. Here’s a breakdown of the most common hardware configurations and what you’ll need to get started.

Pop-up or market POS hardware

For temporary locations like markets, fairs, or pop-ups, simplicity and portability are essential. An iPhone or iPad running the Shopify POS app is all you need to start selling.

Pair it with a Shopify card reader for Bluetooth-enabled payments, and you’re ready to accept contactless or chip transactions on the go. If you want to provide receipts, a portable receipt printer can be added, but it’s optional for smaller or mobile setups.

Retail counter POS hardware

A permanent retail space calls for a more robust hardware setup. Most stores use an iPad with a POS stand or mount to create a professional checkout station.

Payments can be processed via Shopify POS Go or the Tap & Chip card reader, while accessories like a barcode scanner, cash drawer, and receipt printer streamline the checkout process. A reliable Wi-Fi connection ensures your inventory and sales data remain in sync across all channels.

Multi-location POS hardware

For retailers operating across multiple stores, each POS terminal can be linked to its own Shopify “location,” allowing staff to sell and manage stock independently.

Despite this separation, Shopify’s shared stock management and reporting tools keep everything unified in the Shopify admin. You can track sales per location, monitor inventory levels, and generate centralised reports, making multi-store management far simpler and more accurate.

Third-party POS card readers

Not every retailer needs to use Shopify’s own hardware, and in some cases, third-party card readers can be a practical choice. While Shopify’s devices offer the smoothest integration, supported alternatives give you flexibility if you already have existing hardware or specific regional requirements.

Here’s what you need to know about using third-party readers with Shopify POS.

Shopify-supported readers

Shopify’s own hardware, such as Tap & Chip and WisePad 3, works seamlessly with Shopify Payments. Transactions are processed directly through the POS app, so payments will sync automatically, reporting updates instantly, and refunds are fully integrated. This tight integration minimizes errors and saves time during reconciliation, making it the preferred choice for most retailers.

External or third-party card readers

You can also use devices like SumUp, Square, or Zettle in “external terminal” mode. With these devices, the sale must be manually marked as “paid externally” in Shopify POS.

While this allows you to accept payments outside Shopify’s native system, payments and refunds won’t sync automatically, so reconciliation requires manual effort.

When third-party readers make sense

Not every retailer starts with a fully integrated POS setup, and there are some situations where keeping existing hardware or using a lightweight solution makes perfect sense.

• When Shopify Payments isn’t available in your region
• If you want to keep an existing contract or hardware, or;
• For occasional in-person sales where full POS integration isn’t critical

As your in-person sales become more frequent (and the need for accurate stock, smoother checkout, and unified customer data grows) most retailers eventually reach a point where a more connected POS setup becomes the smarter, more efficient choice.

Third-party UK hardware examples

There are a number of third-party card readers that retailers in the UK use alongside Shopify, especially when they're starting out or testing in-person selling before committing to a full POS setup. 

Some commonly used external options in the UK include:

• SumUp Air / Solo – Budget-friendly mobile terminals, app-based and portable
• Square Reader – A reliable card reader and widely supported by Shopify
• Zettle Reader 2 – Another external option, though with limited integration

Using third-party readers means you lose automatic payment sync and integrated refunds. Sales must be reconciled manually in reports, and support may be split between Shopify and your payment processor. 

While these readers can work well in certain circumstances, retailers should weigh the convenience of full POS integration against the flexibility of external devices.

Image sourced from Shopify POS from the Shopify App Store

Shopify POS Lite vs POS Pro

Choosing the right Shopify POS plan is a big part of getting your in-person selling right. Shopify offers two options — POS Lite and POS Pro — and each one is built with different types of retailers in mind.

The key is understanding what you need. Do you just want to take quick card payments at the counter or on the go? Or are you running a busier store with staff, stockrooms, and multiple locations to manage?

POS Lite

POS Lite comes included with all Shopify plans, making it a great entry point for retailers just starting with in-person sales. It’s ideal for single-location stores, pop-ups, or market stalls.

Key features include processing payments, printing receipts, and accessing simple sales reports. While it lacks some of the advanced tools of POS Pro, it’s fully functional for most small-scale retail operations.

How much does Shopify cost in 2025? Read our insights article to find out more.

POS Pro

For larger stores, POS Pro is available as an add-on for £79/month per location. It’s designed for multi-store retail teams, offering advanced functionality that goes beyond the basics. 

With POS Pro, you get enhanced staff permissions, smart inventory management, detailed analytics, and more sophisticated reporting. These features help larger teams coordinate sales, track performance, and manage stock across multiple locations with ease.

Learn more about Shopify Plus benefits for larger retailers.

Which Shopify POS option is best?

If you’re a small shop, market seller, or solo entrepreneur, POS Lite will likely cover all your needs without any extra cost. On the other hand, POS Pro is worth considering if you operate a permanent store with multiple employees, or if you need advanced inventory and staff management tools.

How to set up Shopify POS

Setting up Shopify POS is straightforward, but a little planning ensures everything runs smoothly from day one. Whether you’re opening a pop-up stall or a permanent retail location, following a clear setup process will help you connect your store, hardware, and payment systems efficiently.

Quick setup checklist:

1. Add a new location in Shopify admin. Each physical store or pop-up location should be registered as a separate location for accurate inventory tracking.

2. Download the POS app and log in – Available for iOS and Android, this app is your main interface for in-person sales. It easy to get started on your devices with a few taps.

3. Connect your card reader and accessories – Pair Shopify card readers, printers, barcode scanners, and other hardware via Bluetooth or Wi-Fi.

4. Enable Shopify Payments – For transactions and automatic reconciliation of sales and refunds.

5. Customise the POS “smart grid” – Arrange your product tiles for easy access and fast checkout.

6. Run a test transaction to confirm sync – Make a small purchase to ensure stock, payments, and customer data are updating correctly across all channels.

How a Shopify partner can help you get POS right

Getting Shopify POS set up isn’t just about choosing the right hardware and connecting with a few taps. It’s about making sure your online store, inventory, staff workflows, and in-store experience are all aligned — so everything works together smoothly from day one.

That’s where working with a Shopify support agency can make a big difference.

Choose a Shopify agency that will take the time to understand how your business runs. How you receive stock, how your team serves customers, how discounts and returns work, and what reporting you need to stay in control. From there, they configure Shopify POS to match your real processes.

This can include:

• Ensuring inventory stays accurate across all locations
• Setting up staff roles, permissions, and user workflows
• Configuring payment methods and receipt preferences
• Training your team so checkout feels natural and confident
• Providing ongoing support when your business evolves

The goal is simple: your online and in-store retail should feel like one joined-up experience — for you and for your customers. Working with a Shopify partner means you don’t have to figure it all out alone, and you’re far less likely to run into disruptive gaps later on.

If you're considering getting started with Shopify POS, or your current setup isn't quite running as smoothly as you’d like, partnering with a specialist agency can help you move faster, avoid common pitfalls, and get a setup that scales with you — not against you.