How Is Cyber Criminals Affecting the Electric Tobacconist Industry?
We recently had a chance to work with a small online storefront business called Brightpearl E-commerce, and we asked them a series of questions to greatly help us understand their service and what they had to offer. One of many questions we asked them was what is an electric Tobacconist and just why would someone have to use an e-commerce website for the intended purpose of selling Tobaccos? We also wondered if the business enterprise was strictly online and not requiring a real life storefront. We were surprised to learn that both of these questions are quite common among smaller businesses in the e-commerce space.
Let’s begin by explaining what an Electric Tobacconist does. In essence, an Electric Tobacconist offers her or his services to retail customers who order custom blends directly from him/her, instead of from a local Tobacconist. Electric Tobacconists essentially fills orders for the customer, based on availability, through a computer program. This program then offers a customized blend for that one customer, which is distributed around him/her during order.
The interesting part about this business is that the e-cigarette and the devices used to smoke it, like the vaporizer and patches, are exempt from sales taxes in lots of states. This allows the business owner to charge full price for his/her product, because the product is not taxable. Most of the states that exempt the electronic smoking products from taxation actually have a sales tax on them, which there cigarette vendor would then spread to the consumer. Many states, such as NY, California and New Jersey, actually have a combined sales tax on electronic cigarettes. Therefore, an e-cigarette vendor can save a significant amount of cash in his establishment, and charge a high price with regards to nicotine products.
However, this all changes in-may of 2021. The U.S. Food and Drug Administration (FDA) sent warning letters to manufacturers of two popular electronic smoking devices, Brightpearl and Nicogen. The letters informed both manufacturers they were advertising to children and teens and instructed them to place a warning on the websites. In the letter, the FDA reminded the manufacturers that the merchandise were considered by the agency to become a tobacco product and they were therefore illegal to sell to people under the age of 18. Nicogen and Brightpearl had until September of this year to put a stop to their deceptive practices of charging high order volumes and not delivering with their customers.
Because of these recent unfortunate circumstances, it has become essential for many companies to regulate their business practices. Many companies have faced unprecedented delays in receiving their initial shipment shipments of merchandise, while others have experienced extreme degrees of Customer Service Calls. It is becoming increasingly apparent that having less communication between distributors and retailers, and between wholesalers and dropshippers can be severely hampering Trustworthy, competitive electronic cigarette businesses. It really is unfortunately inevitable that once a small business becomes too busy coping with the unexpected circumstances that are constantly occurring in the marketplace, they may lose their track of who is best for his or her products, and may temporarily cease operations.
This situation is unfortunately becoming all too common among Internet Retailers. It will always be unfortunate once the industry is confronted with so many uncertainties, nonetheless it is especially frustrating when the industry is faced with so many uncertainties because of increasing demand and increasing supply. Many think that this situation has been compounded by the recent tragedies in the marketplace, including the unfortunate flooding in the Oklahoma City area. Although it is difficult to imagine what sort of product could cause such devastating damage to the community, it is also vital that you understand that the Internet is merely not free from risk. Just like all other industries that utilize the Internet as their primary way to obtain revenue, distributors and manufacturers must face the truth that cyber-risks pose a substantial and unavoidable risk to their business structure.
Electric Tobacconists is one particular exemplory case of a cyber-risk that faces retailers both large and small. The question is, “How are these cyber-risks affecting the Electric Tobacconist industry?” It is very important note that there are several various ways that cyber-risks are affecting the, but the most troubling issues are those which are impacting the future viability of the industry and overall profitability. Cyber criminals have already been recognized to target businesses that deal in or distribute electronic nicotine products, such as for example podsmall.com vending machines and customer support counters. It is unfortunate that the constant delays because of outages caused by rain, earthquakes, and other catastrophic events have resulted in the increase in customers who are shopping for a simple treatment for nicotine cravings without experiencing serious delays because of natural disasters.
A proven way that cyber criminals are effecting the electric Tobacconist industry is by wanting to extort money from owners of retail establishments that run legitimate mobile concession stands situated in strategic locations around major cities and places of interest. This kind of cyber extortion is nothing new and has been used against a variety of businesses over the years. In fact, there is a high demand for those who have criminal backgrounds in this industry to act as contract workers at concession stands as a way to supply these companies with the labor that they need to keep the line open. There are plenty of talented people ready to step into this entrepreneurial industry that may provide both good customer support and a high degree of service to businesses looking for electrician services.