Shopify POS vs. Traditional Retail POS:

Who’s Really Winning?

POS (point-of-sale) systems have been at the core of retail for decades, but the advent of omnichannel commerce has reshaped how businesses use them, blending in-store and online experiences like never before. Where traditional POS systems were once the only option, cloud-based solutions - led by Shopify POS - are now vying for dominance. The question is: are traditional providers keeping up, or is Shopify taking over?

Shopify POS vs. Traditional Retail POS: The Core Differences

Retail-First vs. Cloud-Native
Most legacy POS systems - think Swan Retail, Lightspeed, and EposNow - were designed for brick-and-mortar businesses first and later adapted for e-commerce. Shopify POS, on the other hand, started as an e-commerce tool that extended into physical retail. That difference in origin means everything.

For e-commerce-first brands expanding into retail, Shopify POS feels like a natural extension - same backend, same inventory, same customer data. Traditional POS providers, meanwhile, often struggle to bolt on e-commerce functionality in a way that feels truly seamless.

Integration: The Real Dealbreaker
Shopify POS is deeply integrated with Shopify’s online store, which means online and in-store data are always in sync - inventory, customer details, sales reports. That’s a huge plus. Traditional POS systems, by contrast, often require custom (and expensive) integrations to achieve the same result. Even then, they rarely match the out-of-the-box simplicity of Shopify.

The Internet Problem: A Fatal Flaw in Cloud-Based POS?

Here’s where traditional systems hit back. Shopify POS and similar cloud-based solutions depend on an internet connection. If your connection drops, you’re stuck. No sales, no transactions, no nothing.

Legacy POS systems, by contrast, don’t have this problem. They were designed to function offline, syncing data at the end of the day. This matters in high-traffic retail environments, where even a few minutes of downtime can mean thousands in lost revenue.

Some retailers mitigate this with a 4G/5G backup. But even that isn’t foolproof - some stores (yes, even in London) have poor mobile coverage.

Cost: Which System Hits the Budget Harder?

Traditional POS systems tend to have higher upfront costs - hardware, installation, training. Enterprise-grade systems can run into tens or hundreds of thousands of pounds. But once they’re in, they’re in.

Shopify POS, meanwhile, works on a subscription model. It’s cheaper upfront, but costs scale with usage. Plus, you’re locked into Shopify Payments - unless you’re on Shopify Plus, in which case you can negotiate different rates.

For smaller businesses, Shopify POS is often the more cost-effective route. But for retailers with significant store footprints, the numbers get murkier.

The Battle for Omnichannel Commerce

Retailers want seamless experiences - buy online, return in store (BORIS), ship-from-store, real-time stock visibility. Shopify POS nails this, but only if you’re using Shopify for e-commerce. If you’re using a mix of platforms, things get complicated fast.

Traditional POS systems often struggle here. They weren’t built with omnichannel in mind, so they rely on middleware and custom integrations to make it work. The result? More friction, more complexity, and often, a worse customer experience.

Where Shopify POS Still Falls Short

For all its strengths, Shopify POS isn’t perfect.

• Enterprise limitations: Larger retailers need robust ERP integrations, purchase order management, and warehouse-level stock transfers. Shopify POS isn’t quite there yet.

• Retail-specific functionality: Many traditional POS systems offer industry-specific features - think advanced loyalty programs, multi-location stock control, or hospitality-focused solutions. Shopify’s getting better, but it’s still playing catch-up.

• API limitations: Shopify’s API is powerful but doesn’t cover everything (e.g., purchase orders, stock transfers). Workarounds exist, but they’re clunky.

So, Who’s Really Winning?

It depends on where you’re coming from.

• E-commerce-first brands expanding into physical retail? Shopify POS is the obvious choice.

• Established retailers looking to integrate online sales? Traditional POS providers still hold an edge in handling complex retail operations.

The big picture? Shopify POS is improving fast, while legacy providers are scrambling to move into the cloud. If they don’t get there soon, Shopify will eat their lunch.

For retailers, the real question isn’t just Shopify vs. traditional POS - it’s how quickly the industry can adapt to the new retail reality. Because in the end, the only thing that matters is what makes sales easier, faster, and more profitable.