The tobacco industry has seen a significant shift in recent years, with more and more entrepreneurs choosing between e-commerce and brick-and-mortar tobacco storefronts. Both options come with their own set of advantages and challenges.
In this blog, we will discuss the pros and cons of e-commerce and brick-and-mortar tobacco shops and explore how a point of sale (POS) solution like Cigars POS can support your business — regardless of your chosen path.
E-Commerce Tobacco Shop Pros:
1. Lower Operating Costs: E-commerce businesses generally have lower operating costs when compared to brick-and-mortar stores, as they don't have to worry about rent, utilities, and other in-store expenses.
2. Wider Reach: An online store allows you to access a larger customer base, as your products can be viewed by anyone with an internet connection, regardless of location.
3. Convenience: Customers can shop from the comfort of their homes, which can attract more sales. Post-pandemic, many industries have discovered the consumer appeal of webstores, and the tobacco industry is no different.
E-Commerce Tobacco Shop Cons:
1. Limited Customer Experience: Online shopping doesn't offer the same experience as visiting a physical store, where customers can touch, smell, and examine the products in person.
2. Shipping and Delivery: Managing the shipping and delivery processes can be challenging, and shipping costs can be a barrier for some customers.
3. Age Verification: Ensuring that customers meet the legal age requirements for purchasing tobacco products can be more difficult online.
Brick-and-Mortar Tobacco Shop Pros:
1. Personalized Customer Experience: A physical store allows you to offer a personalized experience to your customers by providing expert advice and product demonstrations.
2. Immediate Gratification: Customers can walk out of the store with their purchases in hand, without having to wait for shipping and delivery.
3. Community Presence: A brick-and-mortar store can help establish your business as an integral part of the local community, creating a loyal customer base and fostering long-term relationships.Brick-and-Mortar Tobacco Shop Cons:
1. Higher Operating Costs: Rent, utilities, and staffing costs can add up, making it more expensive to run a physical store.
2. Limited Reach: Your customer base is limited to those who live in or frequent the area surrounding your store.
3. Inventory Management: Managing inventory in a brick-and-mortar store can be challenging, as you need to ensure you have the right products in stock and avoid overstocking or stockouts.
Our Recommendation on E-Commerce vs. Brick-and-Mortar
When it comes to deciding between e-commerce and a brick-and-mortar storefront for your tobacco shop, our recommendation is to focus on both (if you can!).
Now, attempting both efforts at once isn’t the best idea for a new small business. However, if you’ve been in action (and profitable) for some time and you’re ready to make a change, consider taking your store online or to a solid location.
Although there are pros and cons to each type of shop, the best way to reach the largest audience and boost sales is to place your business where your potential customers are.
So, for example, if your local tobacco shop has a few steady years under its belt and you’re ready to expand, start small with a simple webstore. It doesn’t hurt to dip your toes in the e-commerce space — and if it doesn’t work out, you can always pull back.
Managing both a storefront and an online shop may sound overwhelming — but there’s a solution for that! This is where a tobacco point of sale system comes in.
Tobacco Point of Sale Solutions: Streamlining Your Smoke Shop
When you manage a tobacco shop, efficient inventory management, speedy checkout, and streamlined business processes are crucial for success. An industry-specific POS solution like Cigars POS can provide you with the necessary tools and features to manage your business effectively.
Cigars POS offers all of the features you need to stay on top of your tobacco storefront and webstore. In fact, when you partner with us, we include e-commerce with your point of sale solution! Our team handles the set up of your webstore to ensure it’s fully integrated with your inventory. This way, when customers are shopping online, what’s in stock will be reflected accurately, and counts will be updated automatically after every sale. Plus, you can offer in-store and curbside pickup options, making the shopping experience even easier for your customers.
Ultimately, the choice between an e-commerce and brick-and-mortar tobacco shop depends on your business goals, target audience, and available resources. Regardless of your choice, investing in a reliable point of sale solution like Cigars POS can help you better manage inventory, process transactions, boost sales, and ultimately, grow your tobacco shop.
With Cigars POS, you'll have the support and expertise you need to succeed in the competitive tobacco industry. Schedule a free demo with our team today if you’re ready to take your tobacco store to the next level.
