Unveiling Practical Issues with Retail Operation Platforms: Six Key Pain Points Shared by Store Owners

Unveiling Practical Issues with Retail Operation Platforms: Six Key Pain Points Shared by Store Owners

According to the Hong Kong Census and Statistics Department, the total retail sales value in Hong Kong for 2023 is estimated at HKD 406.7 billion. The retail industry is vast, and managing multiple stores is no easy task. To ensure smooth daily operations, various retail operation platforms are commonly used. Popular platforms in Hong Kong include Shopify, Posify, Shopline, and Lightspeed. These platforms typically integrate multiple functional modules, such as online store platforms, in-store POS systems, inventory management, membership and points management, and marketing promotion modules. These platforms are popular among retailers due to their low cost, rich features, ease of use, and various cooperation models. Despite the numerous platform providers in Hong Kong, each offering unique solutions, significant differences exist between them, with each having its advantages and disadvantages.

Data Source: https://www.censtatd.gov.hk/tc/press_release_detail.html?id=5381

Recently, we visited a retail store in the New Territories, which has 2-3 outlets. The store owner shared their experience of using a well-known retail operation platform for over two years. This platform claims to be comprehensive, cost-effective, and fully integrated with OMO (Online-Merge-Offline) marketing. However, the store owner reported several issues, contrary to the platform's pre-partnership promotions, and even considered switching platforms.

What issues did this retailer encounter? Let's analyze:

Manual Membership Level and Discount Function Increases Anxiety

The system doesn't automatically switch membership levels and corresponding discounts during checkout. Staff have to manually select these options, which increases the risk of errors, especially for new or inattentive employees. The membership system requires manual upgrade confirmation by the admin, as it doesn't automatically upgrade based on recharge amounts. Furthermore, the POS system can't directly view membership details, requiring staff to log in to the backend to check remaining recharge amounts.

OMO Concept Falls Short? Online Orders and Offline Pickup Are Problematic

Despite the OMO marketing concept, the platform fails to achieve true online order offline pickup. Staff cannot view real-time online orders on the POS system and must check the backend on a computer, making the process cumbersome and inconvenient. The correct operation should allow staff to simply scan the product code to facilitate pickup.

Complicated Return and Exchange Process Decreases Customer Satisfaction

Handling partial returns of multiple-item orders is problematic, as the system can't automatically calculate discounts. Staff need to manually record details, leading to potential errors and customer dissatisfaction. Exchanges require manual annotation of the original order number and reason, adding to the complexity.

Manual Inventory Transfer and Insufficient Data Analysis

Inventory transfer between stores requires manual hold and transfer processes, complicating stock management and increasing error risk. The system lacks a stock request function, relying on phone or WhatsApp communications. Additionally, the backend data analysis features are inadequate, often depending on the store manager's experience.

Store Pickup Requires Handwritten Forms and Lacks Cross-Store Pickup Functionality

The system fails to record store pickup orders, necessitating handwritten notes on receipts. Cross-store pickup is also unsupported, requiring manual communication between stores, which is inefficient and prone to errors. This is problematic, especially if the business plans to expand with more branches.

High Staff Permissions Pose Security Risks

The platform's logic centers on the backend, with many features requiring computer access. POS functions are not well-integrated, necessitating backend logins for tasks like order cancellations and promotions. High staff permissions also pose security risks, potentially exposing sensitive company data.

Choosing an efficient and comprehensive retail operation platform is crucial in managing membership, integrating online and offline operations, stock allocation, and data analysis. Comparing various aspects:

Currently, Posify is recommended as a retail operation platform. It integrates various functional modules, including a robust online store platform, in-store POS system, cloud kitchen system, intelligent inventory management, comprehensive membership points management, gift card functionality, custom-branded apps, and flexible marketing modules. These features not only facilitate digital transformation and upgrades but also enhance operational efficiency and profitability. Posify's reasonable pricing, intelligent membership management, seamless online and offline experience, systematic inventory transfer mechanism, and robust data analysis make it a standout choice. If you're looking to upgrade your retail operation system and improve business efficiency, contact us for detailed insights into how Posify can help elevate your retail business.