Computers in Retail

Point Of Sale (POS)

• Point of Sale (POS) terminals are a computerised system used at checkout counters to process transactions and manage inventory
  • Essential part of retail checkout counters
  • Process transactions and calculate total amounts due
  • Utilise barcode scanners, touch screens, and receipt printers
• Functions of POS terminals:
  • Update stock files automatically
    • Track inventory levels in real-time
    • Prevent stock discrepancies and ensure accurate records
  • Order new stock automatically
    • Monitor inventory levels and reorder when stock is low
    • Streamline supply chain management and minimise stockouts

• Electronic Funds Transfer at Point of Sale (EFTPOS) terminals:
  • Enable customers to make payments using credit/debit cards
  • Part of a secure transaction system
• Functions of EFTPOS terminals:
  • Check the validity of cards
    • Ensure cards are active and not expired
    • Reduce the risk of fraud
  • Use of chip and PIN
    • Enhance security with two-factor authentication
    • Require customers to enter a personal identification number (PIN)
  • Use of contactless cards
    • Allow for faster transactions
    • Enable customers to tap their card on the terminal
  • Use of Near Field Communication (NFC) payment
    • Facilitate payments through smartphones and other devices
    • Increase convenience for customers
  • Communication between supermarket computer and bank computer
    • Share transaction details securely
    • Enable instant payment processing and verification

Internet shopping

Internet shopping is the act of purchasing goods or services online through websites or mobile applications

Characteristics of Internet Shopping

• Online stores accessible through web browsers
• Wide variety of products and services are available
• Convenient and often open 24/7

Advantages of Internet Shopping to the Customer

• Time-saving and convenient
  • Shop from home or on the go
  • Avoid queues and busy stores
• Greater product variety
  • Access to the global market
  • Compare products and prices easily
• Customisation options
  • Personalise items or services
  • Tailor purchases to individual preferences
• Potential cost savings
  • Competitive pricing due to lower overheads
  • Take advantage of online sales and promotions

Disadvantages of Internet Shopping to the Customer

• Security concerns
  • Risk of fraud or identity theft
  • Need to provide personal and financial information
• Limited physical interaction
  • Can’t touch or try products before purchasing
  • This may lead to dissatisfaction or returns
• Delivery delays and fees
  • Wait for items to be shipped and delivered
  • Additional costs for shipping and handling
• Impersonal customer service
  • Difficulty resolving issues or returning items
  • Lack of face-to-face interaction with staff

Advantages of Internet Shopping to the Business

• Can target prices, products and services at specific groups based on buying data
• Can update stock availability and prices more quickly than a physical store through their website
• Cheaper to publicise special offers rather than mail shots
• International customer base
• Increased profits due to lower overheads (e.g. fewer staff)

Disadvantages of Internet Shopping to the Business

• Increased Competition
  • Online shopping means businesses have to compete with a global market, which can be more challenging than competing with local businesses
• Digital Fraud and Security Concerns
  • Online transactions expose businesses to potential cyber threats such as hacking and fraud. Data breaches can result in financial loss and damage to brand reputation
• Technical Issues and Downtime
  • Website outages or technical glitches can prevent customers from making purchases and negatively affect the user experience
• Costs of Delivery and Returns
  • Online businesses often shoulder the cost of shipping products to customers and also have to manage returns and refunds, which can be costly
• Customer Trust
  • Customers can’t physically touch, feel, or try products before buying, which can lead to uncertainty and a lack of trust
• Inventory Management
  • Keeping accurate track of inventory can be complex, especially if a company sells through multiple online channels
• Depersonalisation
  • It can be harder to build relationships with customers and provide personalised service when all interactions happen online
• Online Reviews
  • Negative customer reviews can greatly impact the image of the business, as they are visible to all potential customers
• Dependency on Internet Infrastructure
  • Businesses need a stable and reliable internet connection to manage their operations smoothly
• Logistical Challenges
  • Managing and operating warehouses, packaging, and shipping can be difficult and costly for smaller businesses
• Legal and Regulatory Compliance
  • Companies selling online may have to comply with a multitude of laws and regulations, which can vary by country
• Increased Customer Expectations
  • The convenience of online shopping has led to increased customer expectations for fast, free delivery, and excellent customer service