Difference Between Point of Purchase and Point of Sale

Point of purchase and point of sale are related but distinct moments in a customer’s shopping journey. Point of purchase is the moment a customer decides to make a purchase, while point of sale describes the point of the transaction. 

Creating effective point of purchase moments and removing friction at the point of sale are both critical for maximizing conversions. According to Deloitte’s 2026 Global Retail Industry Outlook, up to 40% of customers’ perception of brand value comes from non-price factors like checkout ease and perceived quality. 

This guide covers point of purchase and point of sale, including what each term means, the differences between them, and how to use them together to guide shoppers from product discovery to a completed sale. 

What is point of purchase?

Point of purchase (POP) refers to physical or digital locations designed to encourage shoppers to make a purchase. These are the moments of influence, not the transactions themselves, and include the environment and cues that shape a customer’s decision to add an item to their cart. A POP might be an in-store display or a product recommendation on an online checkout page. 

Common examples include:

• Endcap displays. Retail store shelving units placed at the end of an aisle draw attention to featured or seasonal products. 

• Checkout displays. Small, low-cost items positioned near the checkout counter encourage last-minute additions. 

• Signage. Shelf talkers, window displays, and other promotional materials highlight product benefits or limited-time offers. 

• Digital recommendations. “You might also like” sections and cart-page upsells replicate in-store impulse purchases online. 

A point of purchase display works by putting a product in a shopper’s path at a moment when they’re receptive to buying it. In physical retail, this means placing items in high-traffic areas or along the right-hand side of an aisle, where shoppers pay more attention as they walk through. It can also mean placing products near the checkout lane, where small, familiar items like candy bars encourage additional purchases. 

Online, the same principles apply to AI-powered product recommendations. In a 2025 Publicis Sapient survey, 23% of consumers said they had used personalized recommendations and found them helpful. While another 16% had not used them, but would like to. LIke a point-of-purchase display, a recommendation surfaces a relevant product at a moment when it may influence the shopper’s decision.

What is point of sale?

Point of sale (POS) is the physical or digital location where a customer completes a transaction—typically a checkout counter in a store or a checkout page online. It’s where the customer pays, and where the system calculates taxes, updates inventory, and issues a receipt. 

Modern POS systems have replaced the standalone cash register. In a store, they pair POS software with hardware such as a card reader or cash drawer to process transactions. Online, the checkout page serves the same function for ecommerce orders. Common types of POS systems include traditional terminal-based systems, mobile POS setups that use a phone or tablet, and self-service kiosks.

For example, baby gear retailer Bambi Baby uses Shopify POS to unify checkout across their retail locations. After moving to Shopify POS, they raised their conversion rate by 30% and gained the ability to update POS devices remotely. 

“The fact that I can be sitting 30 miles away from our closest store and can update all the point-of-sale devices with a new coupon through Shopify saves a ton of time,” says Josh Weiss, IT director at Bambi Baby. 

What to look for in POS systems 

POS systems have evolved to handle more than payment processing. When choosing a system for your business, look for:

• Unified sales channels. For businesses that sell both in-person and online, systems like Shopify POS sync in-store and online orders, inventory, and customer data. 

• Inventory management. A strong POS system should update stock levels in real time as items sell. 

• Staff and operations tools. For in-person businesses, Shopify POS Pro handles staff management and sales attribution, tracking performance by employee and physical location with role-based permissions and daily sales reports. 

• Flexible fulfillment. Options like exchanges, ship-to-home, and in-store pickup connect an online order to in-person fulfillment. On Shopify, these are available in POS Pro.

• Flexible payments. An effective POS system should support various payment methods, including contactless cards, mobile wallets, or installment options. Shopify has its own hardware, including a POS terminal, mobile POS card reader, barcode scanner, and receipt printer. 

• Customer profiles. For both in-person and ecommerce, your POS system should tie purchase history and preferences to a customer profile.

• Sales reporting. POS systems should generate reports segmented by location, staff member, and products. 

What is the difference between point of purchase and point of sale?

Point of purchase and point of sale describe distinct points in the customer journey, though both take place in the same store or on the same website. The key differences are:

• What it describes. POP describes the moment and context that influences a purchase decision, while POS describes the completed transaction.

• Location. POP can happen anywhere in the store or on a product or landing page, while POS is tied to the checkout counter, register, or online checkout.

• Core technology. POP relies on displays, signage, and digital recommendations, while POS relies on a terminal, card reader, and POS software. 

• Data collected. POP data shows which products draw interest, while POS shows what the customer bought, how they paid, and when the transaction happened.

• Primary goal. POP aims to attract customers and prompt a decision. POS aims to process transactions accurately and quickly. 

• Timing. POP happens before the customer makes a purchase, while POS happens at the moment the sale is finalized.

The terms are commonly confused because both can happen in the same physical spot. For example, a checkout display is a POP tactic sitting right next to the POS terminal where the transaction happens. 

Nuances in an omnichannel retail environment

Omnichannel retail, a fully integrated approach that connects all consumer touchpoints, has blurred the line between POS and POP. A customer might discover a product through a POP display in one channel and complete the POS transaction, such as browsing in a store and finishing checkout on their phone, in another. 

The clothing brand NRBY has used that blurred line to their advantage by treating the point of sale as the start of a customer relationship rather than the end of a transaction. 

“We don’t print receipts anymore,” says NRBY cofounder Jo Hooper. “We instead collect emails via Shopify POS, and ask customers to opt in to marketing, which many do, giving [us] a powerful way to build relationships from the first interaction.”

The point of sale was once confined to a fixed checkout counter, but now it extends beyond it. For example, the art publication Cabana magazine built a boutique retail experience around mobile checkout.

“One of the key challenges was integrating a seamless checkout experience within a space that prioritizes atmosphere and storytelling,” says Francesco Mura, cofounder and CTO of Cabana. “Shopify POS allowed us to deploy a flexible setup, blending mobile checkout hardware with a minimal visual footprint.”

4 ways to use POP and POS to boost sales

• Analyze POS and POP data together
• Lower the barrier for new retail partners with ready-made POP tools
• Prioritize POS infrastructure
• Create loyalty moments at the point of sale

You can think of POP and POS as parts of one sales strategy, not two separate systems. Here are four ways they can work together:

Analyze POS and POP data together

POP data tells you what influences a sale, such as which displays and recommendations shoppers respond to, and what questions and feedback they have during the buying process. POS data, meanwhile, tells you what actually sold, at what price, and in what combination. Together, they can show you whether the products drawing attention are also getting sold, as well as who’s buying and why.

Carl Goyette, CEO of energy drink brand Guru Energy, considers POS and POP data together.

“There are a lot of consumers who tell us, ‘I don’t drink energy drinks; I drink Guru,’” he says on the Shopify Masters podcast.

The Guru team brings that qualitative data—along with quantitative POS data—to retailer meetings as evidence that they’re growing the category rather than taking share from other brands. 

Lower the barrier for new retail partners with ready-made POP tools

Giving retailers point-of-purchase tools like pre-made displays removes a barrier to stocking and presenting your product. 

When retail partners weren’t sure how to merchandise her product, Original Duckhead founder Morgan Cros created displays for the brand’s umbrellas to shape the point of purchase in brick-and-mortar stores. She also went further to reduce the retailer’s risk. 

“I made it as easy as possible: If it didn’t sell, I would do returns for them, so it made it really risk-free,” Morgan says on Shopify Masters.

Prioritize POS infrastructure

When choosing a physical space, whether it’s a pop-up shop or permanent location, check what POS infrastructure is already installed, and whether it will work with your system. Is there power and a stable connection where your POS will be used?

Byron Peart, cofounder of the home and lifestyle marketplace Goodee, credits the success of the brand’s Los Angeles pop-up to partnering with a venue that was already equipped. 

“We came up with our own concept and had a physical space that was already set up for retail with POS terminals and staffing,” he says on Shopify Masters. 

Create loyalty moments at the point of sale

Asking for an email address or loyalty sign-up at the point of sale gives you a way to reach customers after the sale. The reward, offer, or marketing email you send next can create another point of purchase on their next visit. 

Bambi Baby integrated loyalty rewards across their Shopify POS locations and online store, contributing to a 30% increase in average order value. The brand also saw more repeat purchases and higher customer lifetime value.