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The word on the street is that Vaporizer Merchant Accounts are not considered high risk any longer. This is far from the truth. How can the sales of an unregulated product be anything but high risk? Yes, we do know one true fact, the sales of ejuice and ecigs, and vaporizers aren’t illegal. But to say that they aren’t high risk products is false.
What makes Vaporizer and Ecig online retailers higher risk?
First, e-juice also known as eliquid contains nicotine. As we all know, nicotine is illegal to sell to minors. For this reason, tobacco products cannot be sold online, so why would ejuice and eliquid be any different? This fact alone opens the Ecig industry to scrutiny. Big tobacco is getting hurt by the online sales of ejuice, ecigs, and vaporizers and they’re making noise about it.
Secondly, the online sales of any type of product cause the business to be at higher risk. The risk for fraud increase dramatically whenever a credit card is not present during a transaction, many online businesses are targeted including ecig companies.
Thirdly, because of the newness of the vaporizers, ejuice, and ecigs, causes the industry to be higher risk. It’s something new and unfamiliar and as a result banks and other financial institutions scrutinize it more. Yes, credit card rates have come down dramatically compared to just a year ago. However to say selling ecigs is just the same as selling anything else online would be a lie.
Lastly, the industry remains at high risk, as long as the FDA is still contemplating the legality and rules of engagement for the sales of ecigs. It’s that simple!
Now for the good news! The online sales of Ecigs and vaporizer accessories are legal. So, go get it while the gettin is good. The industry is exploding exponentially and ecig shops are popping up all over the place. Not to mention all the online vapor shops as well. Money is being made by young entrepreneurs with vision. For every 1 making it there might be 3 that fail. The one's making it are doing things right and so should you. Their are some basics you should know in opening a vape shop or ecig online retailer.
In starting an online vapor, ejuice, or ecig company, you should some simple things. First of all, I highly recommend you create an LLC or Inc to protect your personal assets. This is business 101 and really applies to all people entering into business. Especially if the product being sold is scrutinized by the government. In the USA, anyone can get sued at anytime for any reason. So why not protect yourself in case you do get sued. You’ll need to protect your home, car, retirement, personal bank accounts. Anything considered to be your’ personal assets.
Furthermore, you should get the proper sales permits and business licenses in your state. Check your states Secretary of State website. This will be a good starting point. Also, check with the tax board of equalization in your county to see if anything is needed to sell. Some counties and states will require a sales permit. In California a sales permit is warranted for the sale of just about anything. So, do your due diligence and see what is needed in your state.
Lastly, get situated with a bank account that isn’t tied to your personal bank account. This will help you to track expenses for your business. Also, in the event you create an LLC or Inc you won’t want to co-mingle funds.
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