Point of Sale (POS) Glossary
A vendor supplies goods to a merchant. Vendors may include wholesalers, manufacturers, and resellers. A business makes its profit by marking up items they acquire from vendors and selling them to customers.
A factory generally makes the goods and sells them to wholesalers, who sell to resellers, which sell goods to a retail merchant. However, in cases where the end retailer may purchase large amounts of product, they can deal directly with a wholesaler or manufacturer.
When retailers sell merchandise directly to customers using a point of sale register, they usually sell only a few items at a time and charge sales tax. In cases where a merchant sells to someone who will resell, they become that company’s vendor, and a POS system can be configured to complete the transaction without charging sales tax.
Customers love promotions! Buyers are often pulled in by one deal and wind up buying regularly priced merchandise in addition to, or sometimes instead of your discounted items.
An eCommerce website is open 24/7 and accessible from all over the world. Being online and having physical store opens your business to a global market.