Point of Sale (POS) Glossary
Retail markup is the difference between an item’s wholesale cost to the merchant and its selling price. A retail markup may be quantified by a percentage amount. For example, if a merchant buys something for $5 and then sells it for $10, the profit is $5, which is a 100% markup.
The amount of retail markup is an important consideration when choosing inventory. However, sometimes the percentage amount may mean less to a merchant’s decision-making process. For instance, a very low dollar item may have a high percentage markup, such as candy purchased for a quarter that could sell for $1.00 but is subject to theft, breakage, or expiration.
A robust point of sale system can track the acquisition cost of items, sale prices, time in inventory, and more. A business could then use POS analytics to help determine what markup best fits an item.
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.