There has been a fall in the number of traditional smokers in recent years. However, the reason behind this decrease is because more and more people are switching to vaping as a healthier and safer option. There are more than 50 million vapers around the world and the number of vapers is on the rise. As the vaping market grows each year, it has created many business opportunities for entrepreneurs that are looking to cash in on the market. E-commerce has become the most popular way for selling vaping products. If you want to open your very own online vaping store, then you have come to the place. This post looks at the top 9 tips for opening a Vape Shop.
- Learn About Federal & State Laws
The first thing that you need to do when you decide to open your very own online vaping store is to learn more about the federal and state laws. As laws change from time to time, it is important that you learn about the changes. You can even consult with a relevant attorney to determine if it is viable to run your online vaping shop. The last thing that you want would be to lose all of your hard-earned investment having to deal with legal charges. Thus, when you learn about the federal and state laws, you will be better prepared to run your own online vaping shop.
- Understand State Taxes
Regardless of where one lives, it is always a good idea to understand the state taxes. Find out how the taxation policy on vaping products in your state affects you. Do plenty of research on federal exercise taxes being levied on vaping products. There is a certain percentage of the value of the products that has to be paid to the government. Hence, you should conduct some research on state and federal taxes. Moreover, when it comes to taxes, there are certain states that permit you to sell vaping products directly, whereas, there are some states that require you to sell the products indirectly. Selling in a state that requires limited contact with customers and authorities might be the best option.
- Look Into Business Registration Requirements, FDA Regulations, Licensing, And Permits
If the state you work in levies tax on vaping products, the next step which you should take is look into the business registration requirements, FDA regulations, licensing, and permits. Knowing about these will help ensure that you follow the right procedure for selling vaping products. Moreover, you also need to find out how you can comply with the regulations such as in the case of packaging, labeling, and advertisements. Normally, it is required for vaping products to have a hazard warning which customers can easily read and understand. Furthermore, you would have to ensure that you follow the FDA regulations if you plan on mixing e-liquids or modifying the vaporizers. You might also need additional legal permits for running an online vaping shop.
- Estimate Startup Costs
Once you understand the procedure and requirements for opening an online vaping store, the next thing that you need to do is estimate the startup costs for opening and running the store. Some statistics reveal that the cost for opening a vaping shop will cost you around $7,500 to $10,000 a month. Keep in mind that it does not include the cost of products. Thus, when you add the cost of products and marketing, then it could cost you around $50,000 to get your online vaping shop running. However, you can do it for less.
- Get An Insurance Policy
Since running an online vaping shop is risky, it is crucial that you also get an insurance policy. Having an insurance policy for your business is extremely useful. Many business owners tend to forget the cost of insurance when estimating startup costs. Moreover, you would need to pay more for insurance unlike other businesses as running an online vaping store is quite risky. The cost of insurance depends on the equipment, value of the property, and expected revenue. In addition to these, the amount, value, and type of products in the store would also influence the cost of insurance.
- You Need To Get Creative For Funding
If you need funding for opening the online vaping shop, then you will need to get creative. Since online vaping stores are a new form of business, creativity is key. You need to be able to convince investors or anyone you intend on borrowing money from about how they can benefit from investing in your business. Keep in mind that many financiers would not want to invest in such a risky venture. Thus, you should look into alternative/ creative sources of funding from your personal savings, bootstrapping, crowd funding, family members, and friends.
- Opt For A Catchy Domain Name
The best way to attract potential customers to your online vaping shop is by opting for a catchy domain name. When it comes to the online scene, you need to take advantage of internet marketing which is impossible without having a good domain name. Brainstorm for ideas in order to ensure that you choose the best domain name to generate the highest number of visitors. The domain name should be catchy, short, pass the ear test, descriptive, and incorporate the business name.
- Use SEO
Search Engine Optimization or SEO for short is your best bet when it comes to attracting potential customers to your site. There are plenty of free online short-courses that teach you the basics of SEO. By leveraging SEO, you can capture a greater market share. The key to generating traffic is ranking on the top.
- Research Your Market
Finally, if you want to sell vaping products online, you need to research your market. Find out what competitors have to offer and which technologies are being used in the vaping industry. Consider working with a mentor to learn more.