So you’re a cigar lover and want to turn your favourite hobby into an online business. While attempting to find opportunities to have an income-generating hobby is at all times thrilling, the cigar business is unbelievably complicated. It is important that you understand all the complexities involved.
Regulation
You must obtain the suitable license to sell tobacco. Unlike cigarettes which are illegal to sell online, it’s permissible to market, buy and ship cigars as part of an online company. Regulations can be complicated, and there are still some strange countries that even prohibit shipping of any tobacco product directly to consumers. It makes sense to consult a professional to ensure you get started accordingly. There are respectable attorneys and firms who can help advise you on the regulatory components of your business. While you may cringe at the thought of spending money on the experts, it sure beats paying fines and risking brand damage that could eventually cost you your company. Laws are continually being passed, so they can ensure you’re up to date with the latest laws.
Tax
You will even be required to collect taxes for most states in which you transact business. An initial consultation with a tax professional can help you understand your responsibilities. Tax laws change, so it can be confusing trying to run this part of the business yourself since you’ll most certainly be doing business in several states.
Payment
Collecting money from your customers can present a challenge. Online businesses need to offer consumers safe and secure payment options. You may have difficulty finding vendors willing to facilitate tobacco credit card processing, because of the scrutiny the industry is commonly subject to. However, there are companies that maintain the same standards and protections that more common payment processors can support your online cigar business.
Control
There are several controls you must exercise, and not only to protect your highly sensitive inventory. You most likely already understand the importance of making storage amenities that preserve the delicate nature of your product, taking into consideration the temperature and humidity to keep cigars in prime condition. This will definitely extend to your shipping process as well, protecting the cigars from the environment and potential physical damage.
While these steps increase customer satisfaction and keep customers happy are important to your business, they’ve to be the right customer. Another control you should implement is age restrictions on the sale of tobacco products. Since individuals under 21 years of age aren’t permitted to buy cigars, you must make sure that you don’t jeopardize your business by inadvertently selling cigars to that demographic. Fortunately, there are companies whose services you can benefit from that can verify the age of your customers based on the information they enter on your site.
The moral of the story is that you do not have to start your own online cigar business. Granted, the industry is full of complexity, and there are tons of resources you can draw on to help you launch a successful company.
