Becoming an online retailer

[MiamiE]

I have been considering opening an online storefront. Have done some but not all my research. What are some things I should look into and consider before going all in. I hve some of the more popular brands right here in my backyard. Pepin, Padron, Padilla, Sosa, LGC all have shops in Miami so I save on shipping the product to me.

[pmwz]

the big places buy huge amounts of cigars. dont think thats it a good idea...

[Bax]

Very hard to do. I think you should work for a tobacco shop first and then talk about opening up an online store. Once you see what a huge undertaking it really is I think you'll just be happy to sit back and smoke a cigar

[elderboy02]

Originally Posted by pmwz

the big places buy huge amounts of cigars. dont think thats it a good idea...

I think you would need a huge line of credit to even get close to what the big guys are buying (CI, Famous, etc.). You would then have to get close to what they are selling for in order to make a sale. That wouldn't leave much room for profit. But then again, I have no idea.

Originally Posted by Bax

Very hard to do. I think you should work for a tobacco shop first and then talk about opening up an online store. Once you see what a huge undertaking it really is I think you'll just be happy to sit back and smoke a cigar

I'm happy buying the sticks from my B&M and kicking back and relaxing

If you are serious about opening up an online cigar shop do these things.

1) Figure out your initial investment.

2) Create a business plan of how you are going to provide cigars to customers. Ex, dropship, in-house. Create a shipping policy/procedures

3) Figure out what you need and budget your investment money. Keep some money in the bank to handle large orders and other costs (working capital). Figure break-even

4) Create a good looking website. Since there are so many retailers out there, a good-looking website is essential to compete.

5) Customer service, beat the competition with good customer service.

6) Marketing!

7) Bookkeeping and records- Make sure these are top-notch, that way you can make informed decisions on how to improve.

Hope this helped.

-Mike
Founder and CEO
http://www.italiansmokes.com

[Coz77]

Originally Posted by MiamiE

What are some things I should look into and consider before going all in.

Do not name your online store Booyah cigars!




I remember the stupidest things sometime!

[MiamiE]

I really appreciate the insight guys. ItalianSmokes that's a great outline to follow.

[Chemyst]

A BOTL near me fell on hard times and tried to do this.
It didn't work out well, or last very long. In the end
he smoked his inventory, as I suspected he would when
he wanted me to 'invest' in his enterprise.

He was only able to get a wholesaler deal w/ one brand,
and because times were bad, people were buying mostly
high end sticks, or none at all.

At least he liked the brand he stocked, so he did no worse
than get some boxes at wholesale.

I helped to 'launch' his business by buying a 1/2 box of his
stock, and got a good deal. But I know it's difficult to get
started, and remain in the cigar retailer business.

You may have an advantage since you live close to so many
brands/sources.

fyi

Chemyst

[Wharf Rat]

Originally Posted by MiamiE

I have been considering opening an online storefront. Have done some but not all my research. What are some things I should look into and consider before going all in. I hve some of the more popular brands right here in my backyard. Pepin, Padron, Padilla, Sosa, LGC all have shops in Miami so I save on shipping the product to me.

There are so many would be entrepeneurs trying to start cigar etail shops out of their garage! You need to find a niche, rather than trying to compete selling Mananudos.

But, given your location, you might specialize in hard to find, American rolled cigars. El Titan de Bronze, Moore & Bode, etc.

[chippewastud79]

Originally Posted by coz77

do not name your online store booyah cigars!

Booyah!