Choosing the Right POS Platform: Square or Shopify?

by Amir Levi 15.Mar.2022 14 min read Views

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Amir Levi

Choosing a business point-of-sale platform (POS) is essential for any online e-commerce shop or brick-and-mortar business. The POS System is the platform where all your business transactions are conducted. It also helps you track your company’s progress, from showcasing your products to closing a sale. 

Most businesses now use digital POS systems, like Shopify or Square. Each POS platform offers something different to every user, and it all depends on what you need as an e-commerce seller, a small business owner, or an entrepreneur searching for the next big business deal.

But how would you know which one is for you? How would you know which one to choose in the Shopify vs. Square debate? 

We will explore the pros and cons of Square and Shopify to help you decide. We’ll also cover whether you can use both Square and Shopify.


The Basic Features of a Good POS System

Since POS platforms make payment transactions easy, they share some basic features, such as billing, invoicing, CRM, inventory management, etc. They also offer other add-ons and features. And here is where POS platforms differ—depending on the brand, you’ll find features such as cloud storage, remote access, multilocation management, etc.

But here are the things a basic POS system should do for you.

Sales Reporting 

A basic POS platform should give you a daily sales report listing price, product, profit percentage, and even the employee who completed the sale. This report provides a picture of how your business is performing. 

Customer Management 

Managing your customers is vital for any business. Your POS should allow you to create a database that helps you record customer information. You can record their purchases and contact information to create better marketing campaigns that target your most valued clients.  

Inventory Management

Your POS should keep track of your product, inventory, and stock. You would know when to order a new batch of products and what product needs to be resupplied. Managing your inventory is vital if you want to meet the demands of your clients.

Any POS should have these features, and Square and Shopify offer more than these. But how would you know which one works for you? 

Let’s compare Shopify and Square. 

Why You Should Choose Shopify

Shopify is user-friendly and makes it easier for anyone to set up on their computer or mobile. Its intuitive grid allows users to see the apps and products they use the most, while merchants could manage their business easily, and sellers could offer products far from their physical store. 

  • Works with the Shopify e-commerce platform
  • Shopify is ideal for e-commerce sellers, larger retailers, and online merchants   
  • 24/7 customer service
  • Flat service rates

Shopify also offers two kinds of POS plans—Shopify POS Lite and Shopify POS Pro. The two versions allow small business owners to create an appealing online store and reach Shopify’s thousands of e-commerce sellers and users. 

Here’s a closer look at their features.

Shopify POS Lite

Shopify Lite accepts all major credit and debit cards. It works together with other hardware devices, including mobile devices and printers. 

In addition, you can expect the following: 

Sales Reporting 

Shopify Lite helps you create receipts, discounts, and even refunds. It also helps you create cash flow, sales, product, and financial reports. 

Customer Management

Shopify Lite has several customer management features that new e-commerce sellers and longtime merchants appreciate. The POS will help you build an email and social media campaign to attract new customers. It also helps you build a customer profile list to create a customer loyalty program to create brand ambassadors. 

Inventory Management

Shopify Lite’s inventory management features allow users to add unlimited products to their inventory and manage it from several channels and locations. 

Shopify Pro 

The Pro version provides users with more features than Shopify Lite. 

Here’s what more you can expect:

Sales Reporting 

Pro allows users to create purchase orders, forecast product demand, sale item suggestions, low stock reports, and inventory analysis. 

Employee Management

Pro gives you manager approvals, unlimited POS staff, and assign staff roles and permissions. You can add several staffers to your system and give commissions and acknowledgments to high-achieving personnel. This allows you to assign staff roles for better management. 

Inventory Management

Pro generates stock reports, inventory analysis, and an inventory count. You can also create purchase orders and custom-printed receipts. 

Customer Management

The Pro allows your customers to redeem automatic discounts from your store. It also gives your customers the choice to buy online, have the product shipped in, or pick up their order on-site. 

Shopify Payments

Both Shopify Pro and Lite give you access to Shopify Payments. Shopify Payments simplifies online payments and gives you access to all payment methods.

Shopify users could use Shopify Payments to integrate their digital wallet, e-money apps, and payment partners into their store. The platform gives users and their clients ease of access in their e-commerce store. There is no transaction fee either. 

Even if you don’t use Shopify, you can still access Shopify Payments for all your transactions. 

Why Shopify? 

Shopify has a scalable platform for medium to large e-commerce businesses. If you rely solely on commerce for your revenue, then Shopify is for you. 

Why Choose Square?

Square is a POS system for mobile phones and gadgets. It’s compatible with Apple and is ideal for small business owners. 

Square is unique in its ability to accept swiped payments at lower charges. It also allows Shopify e-commerce sellers and merchants to use the Shopify POS while using Square. 

So, can you use Square with Shopify? Yes! But should you? We’ll cover that in just a minute.

Meanwhile, here are the benefits of using Square:

  • Ideal for new sellers, smaller e-commerce retailers 
  • No extra cost per transaction 
  • Lower charges per card swipe
  • No monthly fees

Square has several features that make it a good choice for e-commerce sellers from small to medium enterprises. Here’s how it stacks up on the three basic services of a POS. 

Sales Reporting

Square’s dashboard displays your inventory and sales reports and compares your business performance. Square provides you with the analytics you need to monitor any business. 

Customer Management

Square has a Customer Relationship Management (CRM) system that stores all your customer data. Using this data to understand the behavior of your market, you can improve customer experience and create a loyal customer base.

Inventory Management

Square’s Inventory Management tools and its dashboard offer users an excellent way to manage their inventory. They can track each product and connect it with a customer, making it a valuable tool for understanding their target market and how they could expand it. 

Square also has the following features in its POS structure.  

Third-party Integrations 

Another of Square’s benefits is its smooth integration with other applications such as the Shopify POS, Intuit management tool, Weebly e-commerce web design site, and inventory management platform Shopventory.

Employee Management 

Square allows managers and business owners to assign roles to their staff in the POS. The system helps with payroll tracking, attendance, and even performance trackers. 

Platform Customization

Square allows its users to customize their online store. Business owners could arrange products and services in a way that would attract their target market. 

Payment Processing

Square’s POS makes it easy for customers to use credit and debit cards with a simple swipe on the phone. The company does charge a transaction fee for every swipe, but it is an acceptable rate for many small to medium businesses. 

This final feature gives Square an advantage over other POS. Users can complete Square payments with a simple swipe. 

What makes Square Payments different?

Square Payments make it easy for users to shop online and make cashless transactions in person. They could use credit, debit, and even gift cards to pay, without the heavy charges of traditional credit cards.  

A card reader app for Android devices and the iPad allows e-commerce sellers to receive and send payments. 

Why Square? 

Square’s free plan and flexible payment process make it the best choice for small business retailers, food shop owners, restaurants, and other brick and mortar stores.

Shopify vs. Square: Can You Use Square with Shopify?

Though both POS platforms offer similar features, Square has limitations on the features it offers users

This is why you cannot use Square with Shopify. You can, however, use Shopify with Square.

Confused? Allow us to clarify.

Since Square allows third-party integration, you can access Shopify on Square. However, you cannot access Square if you have Shopify installed. 

If you already use Shopify and want access to Square, we have a solution. 

Shopify-Square Integration is Your Solution

E-commerce integration coordinates business websites and systems to integrate sales, information, and other essential data used in two platforms. In our case, Shopify and Square.

Here are the different ways to integrate these two POS platforms. 

Shopify-Square Integration on Zapier

If you are a business owner using Shopify, but you need to access both, there is now an option for Shopify users to access Square using Zapier. Zapier is a platform that allows users to access another platform and integrate the data required in both systems. 

The process is quite simple, and users need only sign up for Zapier and authenticate their Shopify and Square accounts. When done, you need to select a trigger app and the resulting action on the other. The Shopify-Square integration allows you to consolidate your information and synchronize your apps.

Square-Shopify Integration on SKUIQ

SKUIQ is another online tool that allows Shopify to integrate with other POS and e-commerce platforms. You could synchronize your data from Shopify and Square, and SKUIQ allows you to connect your POS to your e-commerce platform, which could be your physical store or an online website. 

But the good thing about integration is that whatever POS you choose for your business, you will have the capacity to integrate Shopify and Square. However, still consider the possibilities that each POS offers; it may be the key to your business success.

Shopify vs. Square: Which One is Better?

Still mulling over the Shopify vs. Square debate? 

The answer depends entirely on what you need and who you are. Both Shopify and Square have their advantages and offer basic POS tools.

You need to choose the one that fits your business needs, including your budget and business plan. 

You need to ask what you need as an e-commerce site or an entrepreneur. Think about what needs to change in your processes, whether it’s in the management or service. Review which online management and financial tools could help you. 

Review your business plan and your revenue goal for the year. Consider which POS would serve you better so you could reach your sales targets. 

If you have a small business, you need to check your average order value. A higher number would demand a POS covering tracking, orders, and delivery. 

You should also consider if you have multiple locations or just one physical store. Multiple sites may demand more remote management, and you need to think about which one suits you. 

For Small Businesses

If you have a small business and are constrained by your budget, some experts suggest you choose the one that suits your budget limitations. 

Perhaps Square could appeal to small business owners since their platform is free and its third-party integrations and swipe payment system are appealing. It gives even e-commerce sellers and online merchants access to Shopify’s POS, making it more flexible for budget-conscious business owners. 

Shopify offers two POS to help a small business—Shopify Lite and Shopify Pro. Medium to large enterprises with greater online tracking and management needs prefer Shopify. But check their fees and choose the one that is suitable for you. 

For Medium to Large Enterprises

If your business is medium to large, you might want to choose a POS that does not charge you for using multiple devices. Also, if you plan to create a complex business website that takes advantage of app integrations, then Shopify is for you.

Shopify Pro would help e-commerce sellers, online merchants, and even small businesses with SEO optimization and their website. Shopify Pro will also give you the advantage of integrating with other e-commerce platforms. 

So, which one is it? Shopify or Square? 

Don’t forget to drop by later and let us know which worked best for you!

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