How Is Cyber Criminals Affecting the Electric Tobacconist Industry?
We recently had an opportunity to utilize 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 that they had to offer. One of the questions we asked them was what is an electric Tobacconist and why would someone need 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 discover that both of these questions are very common among small businesses in the e-commerce space.
Let’s begin by explaining what an Electric Tobacconist does. In essence, an Electric Tobacconist offers their services to retail customers who order custom blends directly from him/her, instead of from the local Tobacconist. Electric Tobacconists essentially fills orders for the client, based on availability, by way of a computer program. This program then offers a customized blend for that one customer, which is made available to him/her at the time of 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 many states. This allows the business enterprise owner to charge a high price for his/her product, since the product is not taxable. A lot of the states that exempt the electronic smoking products from taxation already have a sales tax in it, which there cigarette vendor would then pass on to the buyer. Many states, such as New York, California and New Jersey, actually have a combined sales tax on electric cigarettes. Therefore, an e-cigarette vendor can save a substantial sum of money in his establishment, and charge full price for 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 that they were advertising to children and teens and instructed them to place a warning on their websites. In the letter, the FDA reminded the manufacturers that the merchandise were considered by the agency to become a tobacco product and that they were therefore illegal to market to people under the age of 18. Nicogen and Brightpearl had until September of that year to put a stop to their deceptive practices of charging high order volumes and not delivering with their customers.
Due to these recent unfortunate circumstances, it has become necessary for many companies to regulate their business practices. Many companies have faced unprecedented delays vapinger.com in receiving their initial shipment shipments of merchandise, while others have experienced extreme levels of Customer Service Calls. It is becoming increasingly apparent that having less communication between distributors and retailers, together with between wholesalers and dropshippers could be severely hampering Trustworthy, competitive electronic cigarette businesses. It is unfortunately inevitable that once a small business becomes too busy coping with the unexpected circumstances which are constantly occurring in the marketplace, they may lose their tabs on who is best for their products, and could temporarily cease operations.
This situation is unfortunately becoming all too common among Internet Retailers. It is usually unfortunate once the industry is faced with so many uncertainties, nonetheless it is especially frustrating when the industry is confronted 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, like the unfortunate flooding in the Oklahoma City area. Although it is difficult to imagine how a product could cause such devastating damage to the city, it is also important to understand that the Internet is simply not free from risk. Just like all other industries that make use of the Internet as their primary source of revenue, distributors and manufacturers must face the reality that cyber-risks pose a substantial and unavoidable risk with their business structure.
Electric Tobacconists is one such example of a cyber-risk that faces retailers both large and small. The question is, “How are these cyber-risks affecting the Electric Tobacconist industry?” You should note that there are lots of different ways that cyber-risks are affecting the industry, but the most troubling issues are those that are impacting the long term viability of the industry and overall profitability. Cyber criminals have already been known to target businesses that deal in or distribute electronic nicotine products, such as vending machines and customer support counters. It is unfortunate that the constant delays because of outages caused by rain, earthquakes, along with other catastrophic events have resulted in the increase in customers that are shopping for a simple solution to nicotine cravings without experiencing serious delays due to 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 tourist attractions. This kind of cyber extortion is nothing new and has been used against many different businesses over the years. Actually, there is a popular for people with criminal backgrounds in this industry to do something as contract workers at concession stands so that you can supply these business owners with the labor that they need to keep the line open. There are various talented people willing to step into this entrepreneurial industry that may provide both good customer support and a high level of service to businesses in need of electrician services.