Lightspeed vs Shopify: Which Comprehensive Solution Wins?

While many eCommerce retailers conduct their business entirely online, some may find that they also must accommodate physical sales. In these instances, finding a solution that includes a robust point-of-sale (POS) system that covers both digital and physical sales—like Lightspeed and Shopify—is critical.

Here, we’ll compare the two platform options. While both are comprehensive solutions, each offers unique advantages and capabilities that cater to different needs. Let’s explore their strengths and drawbacks to help you choose the best partner for your retail journey.

Shopify vs Lightspeed: Quick Overview

Shopify and Lightspeed are two influential players in the POS and eCommerce solutions markets, each offering tools designed to enhance and streamline retail operations.

Shopify is an eCommerce powerhouse. It provides businesses with an accessible and intuitive platform that simplifies creating and managing an online store. The platform is known for its ease of use, reliability, and scalability.

Shopify also offers a POS system that integrates seamlessly with its online services. This allows for a unified approach to omnichannel sales. With features such as integrated payment processing, marketing tools, and support for dropshipping, Shopify positions itself as an all-in-one solution.

On the other hand, Lightspeed established itself first as a robust POS solution with a strong presence in physical retail and restaurant spaces. The platform offers an iOS app, browser, and cloud-based systems.

Beyond simple transaction processing, Lightspeed offers comprehensive inventory management, in-depth reporting, analytics, 24/7 support, and dedicated account management. Its focus on service and scalability makes it a solid choice for established businesses looking for a thorough retail management system.

In summary, Lightspeed originated as a POS system and later incorporated eCommerce features, while Shopify began as an eCommerce platform before adding POS capabilities. However, they provide built-in payment processing, order administration, marketing, and customer and employee management tools.

Shopify POS vs Lightspeed: A Detailed Look

When deciding between Lightspeed and Shopify, the best solution depends on your business’s unique needs and the features you prioritize. Here, we’ll examine each service provider’s offerings more closely.

A range of factors can influence the price of your POS solution. While we outline fees below, keep in mind that in addition to its retail options, Lightspeed offers numerous packages, including options tailored to golf businesses, restaurants, and other operations.

The total cost of your solution, regardless of which platform, will be influenced by the following:

• The hardware you choose
• Paid features, third-party integrations, and add-ons
• Transaction fees
• Additional payment processing fees when using external gateways
• Custom domain name purchase

Lightspeed Pricing and Payments

Lightspeed does not offer a free tier for its more comprehensive retail plans. However, it offers a free eCommerce-only plan. In this case, you must contact Lightspeed’s sales team directly for a la carte hardware pricing.

All four retail plans are based on one location and include one cash register. Pricing increases with the number of locations or registers required. Transaction fees start at 2.6% plus $0.10 but may fluctuate with higher sales volumes or in certain regions.

Bear in mind that Lightspeed now prioritizes its proprietary payment platform, Lightspeed Payments, abandoning its previous policy of compatibility with any payment terminal brand. Businesses opting out will incur additional transaction fees. Lightspeed also provides complimentary payment terminals to further incentivize the transition, cover early termination fees with other services, and offer free installation.

Monthly retail plans are detailed below:

Lean

• $89/month billed monthly, or $69/month if billed annually
• Essential retail POS capabilities
• Integrated payments
• Access to a B2B catalog
• 24/7 customer support
• Individualized training and onboarding
• Assistance from a dedicated account manager

Standard

• $149/month billed monthly, or $119/month if billed annually
• All Lean plan features
• Accounting functions
• eCommerce integration

Advanced

• $269/month billed monthly, or $199/month if billed annually
• All Standard plan features
• Sophisticated reporting
• Omnichannel loyalty tools

Lightspeed also offers an enterprise plan tailored specifically for high-volume merchants. Pricing is customized according to your business needs. The plan includes all advanced features, API support, workflows, customer user roles, premium customer service, preferred payment rates, and personalized consulting.

Shopify Pricing

Shopify’s POS system extends the reach of its eCommerce platform into the physical retail space. It provides a unified system suitable for businesses with a robust online presence.

The platform offers a selection of proprietary POS hardware that integrates with its online store, though the offerings are less diverse than Lightspeed. Shopify POS Lite, which allows merchants to accept in-person payments using a mobile app, is included in all the plans listed below. Alternatively, a mobile card reader entails a one-off fee of $59.

For more advanced POS capabilities, the Shopify POS Pro plan is available for an additional $89/month per location to supplement the Basic, Shopify, or Advanced plans. Shopify POS Pro is designed for iPads and supports a range of accessories, including stands, cash drawers, card readers, and other checkout necessities.

When using its POS features, you must use Shopify Payments — Shopify’s in-house payment processor. Depending on your payment method and location, processing fees range from 2.4% to 2.9% plus $0.30. While you can integrate third-party payment processors for online sales, Shopify will charge an additional fee.

Shopify eCommerce plans are as follows:

Basic Plan

• $25/month billed monthly, or $19/month if billed annually
• Online store with unlimited product listings
• Two staff access accounts
• Standard sales reports

Shopify Plan

• $65/month billed monthly, or $49/month if billed annually
• Five staff access accounts
• Professional sales reports

Advanced Plan

• $399/month billed monthly, or $299/month if billed annually
• 15 staff access accounts
• Custom report builder
• Third-party calculated shipping rates

Similar to Lightspeed, Shopify also offers an enterprise-level plan, Shopify Plus. This option starts at $2300/month on a three-year term. The comprehensive solution includes Shopify POS Pro, priority support, customized transaction fees based on sales volume, omnichannel commerce, and B2B eCommerce functions.

A mobile POS app allows you to manage sales from any location. Both platforms will enable you to accept various payment methods on the go, whether at a pop-up shop, market, or event.

The Shopify POS app is compatible with iOS and Android devices. It integrates directly with your Shopify online store, keeping inventory, sales data, and customer information synchronized in real time across channels. The mobile checkout feature supports various payment methods, captures customer details, utilizes your phone’s camera for barcode scanning, and facilitates iPhone tap-to-pay transactions.

You can also assemble a shopping cart for shoppers, and if they choose not to buy immediately, you can send them an email reminder later — a feature not available with Lightspeed. The eCommerce app also lets you manage your online store from a smartphone or tablet, allowing you to fulfill orders, update product listings, execute marketing campaigns, and review performance data.

Meanwhile, Lightspeed’s mobile POS solution is geared towards high-efficiency retail and restaurant environments that need on-the-go functionality. The Lightspeed POS app is available for iOS devices exclusively and offers in-depth management features such as detailed inventory tracking, advanced reporting, and multi-store capabilities.

The mobile POS includes tableside ordering and payment, menu management, and restaurant floor plan customization. The platform also supports various peripheral devices to ensure a full range of POS functions are accessible from your mobile device.

Shopify and Lightspeed each offer various POS hardware options designed to cater to different types of businesses, from small pop-up shops to larger stores and restaurants. Both companies offer bundles compatible with their software right out of the box, minimizing setup headaches and ensuring reliability.

Catering to mobile vendors and small stores, Shopify offers compact card readers that plug into smartphones and tablets. For more established retail locations, Shopify sells hardware kits that typically include a receipt printer, cash drawer, barcode scanner, and iPad stands. The Shopify Go POS (handheld POS terminal with barcode scanner) costs $299, while the Countertop Kit (card reader, tablet stand, dock, and mounting kit) is available for $459.

The hardware is generally well-regarded for its sleek design and ease of use, making it a good choice for businesses that prioritize aesthetics and simplicity. Given its range of compact and mobile-friendly devices, it’s well-suited to smaller companies or those looking for portability.

On the other hand, Lightspeed’s offerings are perhaps better for retail and restaurant operations that require more robust hardware solutions. The hardware kits often include high-grade, industry-specific tools such as heavy-duty cash drawers, restaurant kitchen printers, and advanced barcode scanners for quick checkout. While Lightspeed’s hardware is more complex, it’s designed for high-volume, high-efficiency environments.

Lightspeed and Shopify enable businesses to seamlessly sell products across multiple in-store, online, and mobile channels. They support a range of payment methods, including credit and debit cards, digital wallets, gift cards, cash, and checks. You can also integrate with social channels to sell on Facebook, Instagram, TikTok, and online marketplaces like Amazon and eBay.

Reporting and Analytics

Sales and performance reporting is crucial to making business decisions. As such, both platforms can generate detailed reports regarding sales, product and category performance, and finances. Lightspeed, however, also provides extra features for analyzing employee performance and user metrics, including (but not limited to):

• Sales performance by the hour
• Employee performance data
• Customer capture and return rates
• Sales trends by category, SKU, or brand
• Return count and basket size
• Daily, weekly, and monthly reports

Both Shopify and Lightspeed POS allow for sales forecasting. This enables businesses to predict trends and prepare for future demands by optimizing inventory levels and staffing.

Inventory Features

Both Shopify and Lightspeed offer extensive inventory features to simplify business management. They automatically sync online, in-store, and social media sales with inventory. While both platforms offer features like low stock alerts and purchase orders, Shopify requires installing an additional app to access these tools.

Lightspeed outperforms Shopify with advanced features such as detailed categorization, smart pricing assistance, warranty tracking, kitting tools, waste monitoring, and work order management. You can also assign unique serial numbers to products and import items from over 3,000 preloaded catalogs. Another standout feature is the ability to merge purchases, transfers, and orders into a single transaction and modify prices in bulk.

Despite not having all the same features, Shopify remains a robust choice for businesses prioritizing eCommerce. It still provides essential inventory management tools, particularly when enhanced with the Stocky app. Moreover, it’s a highly suitable platform for businesses involved in dropshipping or wholesale.

eCommerce Features

While Lightspeed takes the lead with inventory management capabilities, Shopify has the upper hand in eCommerce.

Both platforms provide free SSL certificates for your website, built-in security, and PCI compliance.

Lightspeed lets you easily set up a straightforward online store with adaptable, mobile-friendly website templates. Plus, it supports multilingual sales and various currencies, accommodating international customers. The platform provides basic SEO and marketing tools, including templates for emails, forms, and landing pages. You can also create welcome emails for new customers, reminders for abandoned carts, and birthday rewards, among other features.

This is also consistent with Shopify; however, most functions are bigger and better. For instance, the platform offers significantly more design templates to choose from and operates in more languages. It integrates with Google Merchant Center for marketing purposes, reviews, and loyalty programs. In addition, Shopify provides discounted USPS shipping, potentially saving you up to 40%. You can also automatically send delivery tracking updates to customers via the Shop app.

Shopify is renowned for its emphasis on user-friendly design and straightforward user experience. The platform is tailored to users who may not have extensive technical expertise, helping them set up their eCommerce store or POS system with minimal hassle. Its interface is intuitive, with straightforward navigation and clear instructions guiding users through each process.

While also relatively user-friendly, Lightspeed tends to have a steeper learning curve due to its comprehensive features, especially regarding inventory management, reporting, and analytics. It caters to businesses that require more detailed control over their operations, which naturally comes with added complexity. However, once users are familiar with the system, they find it very efficient and effective. Lightspeed provides in-depth tutorials, customer support, and training resources to help users maximize the capabilities of their POS system.

It’s important to remember that “ease of use” can be somewhat subjective and dependent on the specific needs and tech-savvyness of the user. Lightspeed’s feature-rich system may take more time to learn, but it might provide greater functionality in the long term. On the other hand, Shopify is ideal for new users or businesses that want a quick and uncomplicated setup with minimal complexity.

Shopify and Lightspeed offer robust app marketplaces and integration capabilities to tailor the platforms to your unique needs. You can, for instance, add integrations to manage payroll, reservations, tax, loyalty programs, and employee shifts, among other features. These apps allow you to manage your entire business from a streamlined single hub. However, many come at an extra cost.

Shopify’s app store boasts thousands of apps across various categories. The depth and breadth of its app ecosystem means it’s easy to find solutions that address almost any aspect of your business, from marketing and accounting to shipping and analytics. Since Shopify has such a large user base, many third-party developers prioritize creating and updating apps for the platform, guaranteeing access to the latest tools and services.

Lightspeed’s app store also offers an array of apps — but its marketplace is much smaller than Shopify’s. Focusing on providing in-depth solutions means integrations are often more detailed and focused on delivering advanced features. The app marketplace selection usually targets the needs of more complex or niche businesses like restaurants and hospitality.

Both Shopify and Lightspeed are recognized for providing substantial customer service but differ in how they offer that support.

Shopify offers 24/7 support through phone, email, and live chat channels. It also features a comprehensive help center with guides and tutorials. Customer service is accessible to all Shopify users, regardless of your plan, although response times and access can vary. Lower-tier plans may only offer chat support, while enterprise-level users can also access assistance by telephone. In addition, Shopify hosts a community forum where users can seek advice from other users. This can prove a valuable resource for troubleshooting common problems or learning best practices.

Lightspeed also provides robust customer service with 24/7 support options, including phone, email, and chat. It assigns dedicated account managers to clients, which provides a more tailored support experience.

The platforms’s customer support is generally well-regarded for its expertise, particularly regarding more complex issues related to inventory management or specific business operations. Lightspeed provides a comprehensive collection of tutorial videos on its YouTube channel and blog, which are useful for visual learners.

Which Is Best for My Business Needs: Shopify or Lightspeed?

Selecting the right POS system for your business is pivotal to its operational efficiency and growth. We’ve noted that Lightspeed and Shopify cater to different business priorities. Overall, Shopify will almost always prove more efficient for businesses prioritizing digital sales. At the same time, Lightspeed is often the better option for those with physical operations.

Given this important caveat, let’s consider which makes more sense for different market segments.

Shopify is often a go-to for small businesses due to its user-friendly platform, easy setup, and straightforward pricing. With its robust eCommerce integration and a wide range of apps, Shopify is particularly suitable for those looking to establish or expand their online presence while still managing physical sales. Its hardware and software are designed for quick deployment and simplicity, making it a go-to for businesses with limited resources.

Lightspeed’s specialized solutions are preferable for restaurant operations or businesses that prioritize in-person sales.

For middle-market businesses, the choice between Shopify and Lightspeed depends on the nature of the business and specific operational needs. Shopify excels with its robust eCommerce platform, making it a strong contender for businesses that need to integrate online and in-person sales seamlessly. Its scalability and extensive app marketplace allow for growth over time.

On the other hand, Lightspeed shines with its advanced inventory management and detailed reporting features. These features suit medium-sized businesses with complex stock control or analytics needs. Per usual, the industry-specific tools provided by Lightspeed may also prove advantageous for businesses with a solid physical retail presence or those in hospitality.

Ultimately, medium-market businesses should weigh their current infrastructure and future growth plans against the features and scalability of each platform.

For enterprise-level businesses, choosing Shopify and Lightspeed requires careful consideration of scale, functionality, and long-term strategic goals. With its robust eCommerce focus and extensive app marketplace, Shopify’s scalable platform is well-equipped to handle high volumes of online transactions. Shopify Plus offers advanced features like higher API call limits, dedicated support, and customization capabilities tailored for large-scale operations.

Lightspeed, on the other hand, provides detailed inventory and data analytics, industry-specific features, and a high level of customization — all particularly beneficial for enterprise businesses with complex, multi-location operations. Its comprehensive reporting and back-office functionalities cater to businesses requiring fine-tuned control over their operations.

For enterprises prioritizing a robust online sales platform with international reach, Shopify is a solid choice. Meanwhile, Lightspeed is well-suited for those who need advanced POS features and specialized industry tools.

Choosing a Payment Solutions Partner for Your Retail Success

The decision between Lightspeed and Shopify hinges on your enterprise’s unique requirements. Lightspeed is the superior choice for merchants focusing on in-store transactions. Its comprehensive suite of features is particularly advantageous for establishments with intricate operational demands.

Conversely, Shopify stands out with its robust eCommerce capabilities and user-friendly interface for businesses primarily operating in digital spaces. Both platforms are equipped with scalable options that can nurture growth and diversification.

A critical component to thriving in the multi-channel retail industry is providing seamless payment options that cater to customer convenience. PaymentCloud fortifies your operations by delivering bespoke ecommerce payment processing solutions adapted to businesses of varied scales.

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