Guide
Shopify vs. Traditional POS: Which Works Best for Consignment Stores?
Explore the differences between Shopify and traditional POS systems for consignment stores, focusing on features, costs, and unique needs.
Consignment stores face unique challenges like managing consignor accounts, calculating commissions, and tracking inventory. Choosing the right POS system depends on whether you prioritize online integration or consignment-specific tools. Here's the quick takeaway:
Shopify: Great for online and multi-channel sales with advanced inventory tools. Requires third-party apps (like ConsignR) for consignor payouts and custom pricing. Costs start at $39/month.
Traditional POS Systems: Specialized options like SimpleConsign or ConsignCloud offer built-in consignor tools but lack seamless online sales integration. Better for in-store-focused businesses.
Quick Comparison
For stores expanding online, Shopify is a solid choice. For in-store operations with complex consignment needs, specialized POS systems are better. Test free trials to see what fits your business best.
Shopify POS Review (2025) - Pros and Cons, Merchant's Take
Using Shopify for Consignment Stores
Shopify's POS system offers a modern solution for consignment stores looking to streamline their operations. While it isn't specifically built for consignment businesses, its wide range of features and integration options make it an attractive choice for store owners.
Overview of Shopify POS
Shopify blends e-commerce functionality with tools that can meet the needs of consignment stores. It earned a score of 4.11 out of 5 in recent consignment POS evaluations [1], standing out for its checkout features and marketing tools. Pricing starts at $39 per month and goes up to $399, with hardware rental options available for short-term use.
Features of Shopify for Consignment Stores
Shopify addresses common pain points like manual inventory tracking and rigid pricing through the following features:
Third-party apps, such as ConsignR, can handle consignor payment management and automate payouts, which fills the gap left by Shopify's lack of built-in consignment-specific tools [2].
Advantages of Shopify for Consignment Stores
Shopify's strength lies in its ability to unify retail operations. It synchronizes inventory across multiple sales channels, supports unique product variants, and integrates marketing tools for both online and offline promotions. This makes it a solid option for consignment stores looking to expand into digital sales [1][2].
However, to fully meet consignment-specific needs like seller payouts and custom pricing, additional setup and third-party integrations are required [2].
While Shopify provides a modern approach for consignment stores, it's worth comparing it with traditional POS systems to see which one better suits your store's unique challenges.
Using Other POS Systems for Consignment Stores
Overview of Other POS Systems
Platforms like Lightspeed, Square, and CerTek's Artisan are popular choices for retail businesses, offering tools for basic operations. Some of these systems can be adjusted to meet consignment store needs. However, dedicated solutions such as ConsignR, ConsignCloud and SimpleConsign are specifically built for consignment businesses, providing tailored features without requiring major adjustments.
How Other POS Systems Handle Consignment Needs
Traditional POS systems address consignment operations in various ways:
CerTek's Artisan POS, for example, includes pricing and inventory tools designed for consignment setups. This helps store owners manage more complex scenarios while keeping records accurate and organized [3].
Drawbacks of Other POS Systems
Traditional POS systems often face challenges when applied to consignment stores. They may struggle to sync in-store and online sales seamlessly, leaving tasks like consignor payouts and inventory splits to be handled manually. This increases the risk of errors [3] [4].
Additionally, these systems typically lack the flexibility needed for consignment-specific pricing models and commission calculations. While ConsignCloud provides basic solutions for some of these needs at no cost, platforms like SimpleConsign offer advanced features, such as multi-store management, but at a higher price point [1].
Ultimately, the effectiveness of any POS system depends on the specific needs and size of the store. While traditional systems can be adjusted for consignment use, their limitations have led many store owners to prefer Shopify and its integrations for a more streamlined experience.
Shopify vs. Other POS Systems: A Side-by-Side Comparison
Comparison of Key Features
Choosing the right POS system for a consignment store means comparing features that meet your specific needs. Here's a breakdown of Shopify and traditional POS systems:
Strengths and Weaknesses of Shopify
Shopify stands out for its ability to merge online and in-store operations effortlessly. However, to cater specifically to consignment needs, you'll need third-party apps like ConsignR, which add costs of $10-$50 per month depending on the app [1]. Its advanced inventory management and built-in online sales tools make it a strong choice for stores with a focus on multi-channel sales.
That said, Shopify's pricing - starting at $39 per month and going up to $399 for advanced plans - might feel high for smaller consignment businesses [2]. Still, its integrations with apps like ConsignR can streamline tasks like consignor payouts and inventory tracking, which may justify the extra expense for many store owners.
Strengths and Weaknesses of Other POS Systems
Traditional systems, such as Square and Lightspeed, often come with lower upfront costs and basic inventory management tools. However, they don't match Shopify's ease of online integration and may require more manual effort for consignment-specific tasks [1]. Systems designed specifically for consignment, like ConsignR, offer advanced features like multi-store management but generally come at a higher price.
Key drawbacks of traditional systems include:
Limited online sales capabilities compared to Shopify
Challenges with inventory synchronization
Fewer options for third-party integrations
Pricing that can become complicated with add-ons
Lightspeed, for instance, excels in in-store operations with its strong register but may need extra setup to reach Shopify's level of online functionality. For many store owners, the decision comes down to whether they prioritize consignment-specific features or a more versatile retail solution [1][2].
The right choice ultimately depends on your store's focus - whether it's seamless online integration or specialized consignment tools.
Conclusion and Advice for Consignment Store Owners
Choosing the Right POS System
Deciding between Shopify and traditional POS systems depends on how your store operates and your future plans. Shopify is a strong choice for stores looking to expand online, thanks to its multi-channel sales tools. It also simplifies inventory management and consignor payouts through integrations.
On the other hand, traditional POS systems work well for in-store-focused businesses that need specific consignment features. Options like Artisan and ConsignCloud offer built-in tools for managing consignor accounts and payouts without requiring extra apps.
Final Takeaways
Shopify scored 4.5 out of 5 in POS evaluations [1], standing out for its checkout, marketing, and ecommerce tools. While Shopify is great for scalability, traditional systems are often simpler and better suited for stores focused solely on in-person sales. ConsignR scored a 5 out of 5 in consignment software solution for Shopify through Capterra [2].
If you’re planning to expand online, Shopify’s integrations and scalable features are worth exploring, though they come with setup requirements and potential app fees. For stores focused on in-store operations with more complex consignment needs, traditional POS systems can deliver what you need without additional costs.
Pick a system that makes your day-to-day tasks easier and aligns with your store’s growth. Whether you go with Shopify or a traditional POS, the goal is to streamline operations while meeting consignment-specific needs. Take advantage of free trials (if available) to test which system works best for your business.