Point of Sale (POS) Glossary
In point of sale systems, average cost refers to the amount a merchant paid for all of their current stock of an item, divided by the number of that item they currently have in inventory. For instance, a vendor might have originally charged $20 for 10 widgets ($2 each). On a reorder, they raised the price to $30 for 10 ($3 each). In this example, the total price was $50 or an average of $2.50 each. If the merchant still had all 20 items in stock, the average cost would be $2.50.
Average cost calculation can be more complicated than the example above. There may be complexity, such as multiple prices, returned items, shipping, and the number of remaining items in stock. A POS system may offer options to capture different considerations when calculating this value.”
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.