According to the World Health Organization, the number of traditional smokers has decreased significantly. More and more people are moving towards vaping because it is much safer and healthier for all people involved. Due to this movement, the number of vapers increased from 7 million in 2011 to 35 million in 2016.
With the market increasingly growing each year, entrepreneurs need to take advantage of the business opportunity presented. If you are looking to start a vaping or E-cigarette business, you need to have the business tips and strategies that will ensure you succeed in your first year.
Online commerce is the most popular way to sell vaping products. Read on to learn everything you need to know about how to open a vape shop online.
How to Open a Vape Shop Online
This article offers you a complete guide on how to open a vape shop and earn back your money. We will cover the web design, search engine, and the brick and mortar aspects. These tips will ensure you satisfy the physical and the online market.
Ensure You Learn All the State and Local Vape Taxes
Regardless of where you live, it is always essential that you check the state and local laws. The last thing you want is to lose your hard-earned capital investing in a business that will not take off.
You need to know and understand your State’s taxation policy on vaping products. You also need to do research on the federal exercise taxes that are levied on vaping products by the federal government.
There are also certain municipalities and states that levy taxes on the products sometimes as a percentage of the value of the product on wholesale or as the retail value of the products.
If you conduct proper research, you will also discover that some States discourage physical vaping shops indirectly or directly. In such states, online shops will thrive due to limited contact with authorities and customers.
Think About the Permit, Licensing, FDA Regulations, and Business Registration Requirements
If you see that you can work with the tax levied by your state, your next step should be to look at the state, federal, and local laws. In 2016, the FDA passed a regulation to regulate tobacco, vapes being classed into this category as well. Therefore, you must ensure that you comply with these regulations, which also include advertisements and packages.
These products should always have a hazard warning that users can read and understand clearly. If you plan to mix e-liquids and modify vaporizers or use loose tobacco, you also have to follow the FDA regulations on retailers and manufacturers.
You may also need to look for additional legal permits (other than those normally needed for businesses) for your online vape shop. These permits, fees, and licenses will vary from one state to another.
Remember that this is also a business like any other, so you need to set yourself up as a business entity. This will protect your personal interests in case you are slapped with a lawsuit.
Consider the Startup Costs
Some statistics have shown that opening a vaping shop will cost over $7,420 to $10,020 per month. This does not even include the costs of the products. You need roughly $50,000 to start the shop and have a marketing team. Therefore, other than having your business online, you can also opt to have a physical store.
Starting any business will be stressful for any business owner. Regardless of the industry, you need to think about where you will launch your brick and mortar store and how much it will cost you.
You need to think about where your shop will be located. Is the place secure? You also need to think about launching a marketing strategy, hiring and training staff and where you will get the first funding that will allow you to get on your feet.
Never underestimate the costs of your inventory. There are a lot of things you will need to buy. These include:
- Vape batteries
- Hardware
- E-liquids
- Battery chargers
- Vape juice
- Replacement Coils
You should also buy only from wholesale sellers to enable you to double your stock and half the price. As a rule of thumb for any business, never sacrifice quality for quantity.
Have an Insurance Policy
You need to think about the business insurance policy you will purchase. Most business owners forget to factor in the costs of insurance in their startup budgets. The truth is, you should expect to pay much more insurance than other businesses pay.
The cost will vary depending on the revenue, the value of the property, and equipment. The type, value, and amount of the products in your store will also determine the costs of the insurance.
Understand That Getting Funding May Be Challenging
Apart from preparing for the upfront costs, you need to think about where you will get the money to finance the business. Although the business is highly profitable, it is also one of the riskiest businesses you can engage in.
That aside, it is also likely that most financiers will not want to put their money in such a risky venture. In fact, banks will not even go near funding startups.
The only time you will be certain that you may get some financial assistance is after the business has gained a solid revenue and is highly profitable. These will prove to the institutions that you can repay what they give you. To start, you need to look for alternative sources of funding from friends, family, crowdsourcing, bootstrapping, and your personal savings.
You Need a Catchy Domain Name for Your Vape Shops
If you are new to the online scene, it is important that learn more about internet marketing. It is almost impossible to succeed if you do not have a good domain name.
Google is a search engine you need to be taking advantage of. It will provide you with your highest source of traffic. When people search for vaping companies, you need yours to be one of the ones that come up.
You must be wondering if I am selling a product, should customers buy whether I have a good domain name or not? Well, think about it this way, what websites do you visit often? Do you always have to go to Google to search for them?
No, most likely, you just identify their domain name on the search engine and go to their website directly. That is the difference between a good domain name and a bad one.
Here are the tips that will help you choose a good domain name:
- Keep it short and catchy
- Ensure it passes the ear test
- Keep it descriptive
- The domain name and the company name need to be the same
- Ensure there will be no legal disputes over the name
- Go to the right domain name registrar
- You should also make sure that the name is actually within your budget
Therefore, a good one will be simple, easy to remember, and will likely have the company’s brand name — a good example is Crystal Pipe. A branded domain name is much easier to remember, and it will be better for repeat customers.
Consider the Graphics and SEO Aspects
It is important that you make sure that the website is easy to use and SEO friendly. You need to have a good logo and interesting photos that will make people want to buy from you. SEO friendly content means that people will find you each time they make searches for Suorin Drop and other vaping products around in your area.
Conduct Thorough Research
Another important thing you need to do when you start your business is ensuring that you are aware of the various terminologies used in the vaping industry. You need to understand all the essential terms so that you can communicate with people in the industry. Other than helping you understand the products that you can sell in your shop, it will enable you to use key terms in your website that will help re-direct clients to your site once they search these terms.
Find Avenues Where You Can Sell the Products Online
There are awesome avenues other than your website that you can sell your products and get good profit. In these websites, it will be easier for you to reach a broader market and make more sales. Customers get to drag and drop the products they need from in their carts easily.
You can also invest in logistic companies, which allow you to make the right choices and make it easier for you to sell and distribute your products. If you do not have a brick and mortar store, these companies make it easier for you to achieve your goals.
They will store the products for you at a small fee and will allow you to have plenty of room to start your business at a small fee. All you will need to invest in quality products.
Learning How to Open a Vape Shop Is Just the Beginning
For you to be truly successful, you need to exercise a great deal of patience. Whether you choose to sell both online and in a brick and mortar store, you need to know that it is not a guarantee to get any profits in the first six months.
Remember that you also need to pair the advice above with excellent customer service, excellently written, informative articles, and high-quality products. Follow the above guidelines on how to open a vape shop online.
For more business tips that will help you expand and grow, bookmark our page.
