A single POS for co-retailing using Consignment software

So you’ve decided that you would like to share a retail space.  You’re joining an innovative market offering a better customer experience and all the other benefits and cost savings associated with sharing.  Now it’s time to consider the details such as how the location will be managed, and how will the sales be processed.  Here are some considerations that could be useful when deciding on what Point of Sale system you will use.  

You have 2 options available.  Using 2 distinct POS systems with each business having its own inventory and transactions and other services or a shared POS system that would manage both businesses including inventory and payments but maintaining each business as separate entities.  Currently, there is no specific software described as a single POS for co-retailing arrangements, consignment software can easily be used to accomplish this.  In this article, we will discuss the single POS option and look at some considerations and potential uses.

Consignment software can indeed be used to create a single, unified point of sale (POS) system for shared retail spaces, thereby reducing the need for multiple registers and staff. This not only streamlines the checkout process but also improves the overall customer experience. 

Retailers interested in sharing a store, splitting expenses, renting out shelf space, or adopting a consignment model can certainly leverage current consignment software to facilitate these business arrangements. This software simplifies inventory management, tracking, payment processing, and reporting, making it ideal for shared retail spaces.

Here's how consignment software can be utilized for these purposes:

Unified Inventory Management: 

Consignment software allows retailers to manage multiple inventories on a single platform. Each item entered into the system is associated with its respective retailer or consignor, ensuring that each product's origin is clearly tracked and recorded. It also ensures that each seller's inventory is accounted for separately.  This allows multiple retailers to sell through a single POS system while maintaining a clear distinction of their respective products.

Sales Tracking:

Consignment software can track every sale made, immediately associating it with the correct retailer or consignor based on the sold item's record. This allows for a consolidated sales process with the seamless operation of a single register, while still providing accurate, separate sales data for each retailer.  These software systems can track sales at the SKU level, providing detailed reports on which items are selling and which are not. This allows both the primary retailer and those renting shelf space to have a precise understanding of their sales performance.

Payment Processing:

Consignment software often includes payment processing features. This means that sales made by different retailers sharing the space can be separately tracked and processed, simplifying the splitting of expenses and payments.  All payments are processed through the single POS system, regardless of which retailer's item is sold. The consignment software automatically credits the sale to the correct retailer or consignor, ensuring that payment goes to the right party. This negates the need for separate registers or payment systems for each retailer.

Reporting: 

Consignment software offers robust reporting tools. These generate sales reports and payout summaries for each retailer or consignor, providing clear, individual records of sales and profits. These reports can be generated daily, weekly, monthly, or for custom periods, giving each retailer insight into their individual performance.

Consignment Contracts and Splits:

In a shared retail environment, different retailers might have different agreements for sales splits. Consignment software can handle these variations, automatically calculating the owed amount to each party per the agreement when a sale is made.

Staff Training:

Having a single POS system means staff only need to be trained on one system, even though they're handling sales for multiple retailers. This makes operations much smoother and more efficient.

Automation of Consignment Processes:

The software automates many consignment processes such as pricing, tagging, markdowns, and more. This allows for efficient management of items coming from different sellers in a shared retail space.  Each vendor has maintains their own pricing strategy and sales events.

Vendor Relationships: 

These systems often offer features to manage relationships with vendors, which could be essential when several retailers share a space.  This can also facilitate new relationships with new vendors.

If you are considering co-retailing as a way to help expand your brand's reach, the tools are out there to help you be successful.  Retailers should evaluate the features of each software platform and choose the one that best fits their business needs.

It's important to note that retailers must still ensure they have clear agreements regarding the division of costs, responsibilities, and profits in these shared arrangements. Consignment software is a tool that facilitates management but doesn't replace the need for good business practices and agreements.