Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Inventory Expenses

$300

$11,750

Software Expenses

$150

$2,195

Advertising & Marketing Costs

$0

$2,750

Total Startup Costs

$6,424

$51,662

Swagg Sauce

swaggsauce.com

12,852

Element Vape

elementvape.com

24,789

VapeSourcing

vapesourcing.com

36,936

DIRECTVAPOR

directvapor.com

38,206

Smok

smoktech.com

38,954

Everzon

everzon.com

49,609

vaping.com

vaping.com

57,424

Breazy

breazy.com

66,958

3avape

3avape.com

69,833

Dr. Dabber

drdabber.com

79,745

Vapor Empire

vaporempire.com

82,548

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a online vape shop. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

High margins

The gross margins for your online vape shop are typically around 60%, which is considerably high and allows you to grow your business and manage costs easily.

Easy to encourage "impulse buy"

In the online vape shop, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A online vape shop can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Taxes

As a online vape shop, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

High overhead expenses

With starting an online vape shop, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article