Running a vape shop online has plenty of challenges. There are a number of roadblocks that vape businesses online face, versus other e-commerce stores.
There are also decisions to be made with payment processing that need consideration. If you’re looking to future-proof your vape business, then here are some helpful tips on running a vape shop online.
Why do vape shops face more roadblocks than other e-commerce stores
What type of roadblocks are faced when it comes to vape shops online? Products such as e-cigarettes and vapes in general can face a lot of scrutiny due to their potential to attract young people.
Therefore, both regulatory and legal challenges are faced. Let’s take a look at some of them now:
Marketing and advertising bans
Unlike some of the typical e-commerce products you’ll come across, vape products face more severe restrictions. Promotions on major platforms, for example, make it severely limit when it comes to marketing opportunities available.
Supply chain impact
With bans on certain products, like single-use vapes, it cuts into any potential revenue that could be made for some companies.
Youth vaping concerns
There are youth vaping concerns that come with vapes, with single-use and brightly colored vapes being a particularly favorable one.
The payment processing puzzle every vape merchant hits
A puzzle that many vape merchants face is the payment processing aspect of running their online store.
The industry is considered high risk, so that makes it a bit more complex when acquiring a payment processor. To implement one, you’ve got increased chargebacks, sudden account terminations, and higher fees. Why is the vape industry so high-risk?
Legality and regulation
There’s a changing landscape legally, which means it’s getting harder for vape companies to get access to many of the payment processors out there. There’s an unwillingness to work with this type of industry due to the lack of consistent regulations present.
Chargebacks
With vape products, there’s a higher chance of chargebacks due to the product regulations in place. That can add to the complexity and risk that payment providers face.
Novelty of products
While the vapes are very popular, e-cigarettes and vaping products are still somewhat new to the market. As such, there’s an increased risk for financial institutions to take it on.
Account terminations
Many of the traditional payment processors may end up abruptly terminating accounts for vape businesses. That often leads companies scrambling for alternatives, which potentially impacts available funds.
High fees
As a high-risk industry, companies will often face higher credit card processing fees and which can significantly impact the profit margins.
Difficulty finding a processor
Finding a processor that it willing to work with vape businesses is few and far between. That’s why it’s important to identify where these companies are to create a vape merchant account.
Here are a few steps you can take to navigate the puzzle that is finding a payment processor:
- Find a high-risk specialist
- Be transparent
- Focus on competitive rates
- Understand terms
- Implement fraud prevention
Smart ways to future-proof your online vape business
When it comes to future-proofing your online vape business, there are a few smart ways you can do it. Let’s take a look at how to future-proof your online vape company.
Prioritize robust security
To build trust and loyalty within your brand and business, you should be looking to prioritize your security. From multi-factor authentication to regular security assessments. These are all important to do to keep your shoppers safe online.
Stay compliant with evolving regulations
It’s good to be compliant with any regulations currently in place, but to adapt when it comes to evolving regulations, too.
Of course, you have the strict age verification for sales and content, but other regulations might be specific to the area you’re selling to. Therefore, it’s good to be mindful of this when it comes to running a vape shop.
Diversify your product offerings and manage your inventory
It’s good to look at your product offerings and to diversify them where you can to attract a wider market. Managing your inventory strategically is important too, so you don’t have any wasted stock or missed opportunities pass you by.
Implement a strong digital presence
Finally, be sure to implement a strong digital presence for your vape shop. While it can prove challenging due to the marketing and advertising restrictions, there are plenty of ways you can still stay visible to your audience. From content marketing to SEO best practices for your website.
These tips will help you grow your vape business while also staying compliant at every turn.
