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.
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.
You’ve probably been at the register at the grocery store and asked if you wanted to contribute money to a charity as you checked out. Maybe you donated, or perhaps you found it was annoying. It might have depended on your mood that day, or possibly the charity was a deciding factor.