Did you know the U.S. tobacco market is currently valued at $108.5 billion — and it’s only getting bigger? As demand for cigars, vapes, and CBD products rises, making the right inventory choices can position your smoke shop for long-term success.
But stocking your shelves isn’t as simple as lining them with Marlboros and Zippo lighters. Every product — from rolling papers to premium cigars — impacts your customer base, sales potential, and compliance requirements.
The right inventory doesn’t just influence profit margins. It also shapes customer loyalty and defines your shop’s reputation. But where do you start? Sourcing high-demand products, finding reliable suppliers, and managing stock can be overwhelming for new shop owners.
To help set you up for success, we’ve broken down the must-have inventory items every smoke shop needs, where to source them, and how to manage your inventory with the right tools.
Essential Items for Your Smoke Shop Starting Inventory
Building your smoke shop starting inventory means stocking products that match the demands of your target demographic, comply with federal regulations, and have a high profit potential.
While every smoke shop serves a unique clientele, the most successful ones focus on a core selection of high-demand products as the foundation of their inventory, including:
- Tobacco products: Stock popular brands of cigarettes in both king-size and 100s, along with rolling tobacco for customers who prefer hand-rolled options. Offer a variety of premium and machine-made cigars and flavored cigarillos to appeal to different smokers. Carry a mix of Virginia, Burley, and Cavendish blends to meet pipe tobacco smoker preferences.
- Vape pens and mods: Purchase disposables and refillable vapes and offer a selection of nicotine salts, freebase liquids, and popular vape products to keep customers returning to refill or try new devices.
- CBD and hemp products (where legal): Include CBD oils, beverages, edibles, and hemp-derived products for the sizable CBD market (currently valued at $6.7 billion).
- Smoking accessories: Maintain a supply of rolling papers, wraps, and filters. Stock disposable and refillable lighters and novelty designs for upselling. Offer basic, decorative, and odor-control ashtrays.
- Glassware and smoking devices: Supply a range of affordable glassware, such as bongs, pipes, and hookahs, as well as high-end premium pieces — stock supplies for hookah smokers who need charcoal, hoses, and replacement parts.
Build your smoke shop starting inventory around these popular items, then refine your selection based on local customer preferences. Use point of sale (POS) data to track top sellers and slow movers as your business grows.
Where To Purchase Your Smoke Shop’s Starting Inventory
The next step is to find reliable suppliers. Comparing vendors, negotiating bulk discounts, and understanding minimum order requirements (MOQs) can help you secure the best prices to lower your overhead.
Remember: Inventory is your biggest cost, so consider your suppliers carefully. Many offer bulk discounts, so balancing inventory costs with sales projections is key to profitability.
Here’s where to source your smoke shop starting inventory.
1. Licensed Distributors and Wholesalers
Working with licensed distributors is critical for regulated products like cigarettes, cigars, vape gear, and CBD. These might include:
- Tobacco distributors: They supply premium cigars, rolling tobacco, and cigarettes while complying with tax and age-restriction laws.
- Vape wholesalers: These wholesalers provide e-liquids, disposable vapes, and accessories. To avoid unauthorized products, look for suppliers that comply with PMTA regulations.
- CBD and hemp suppliers: In states where hemp-derived products are legal, you can source products from licensed growers or wholesalers — however, make sure their products are independently lab-tested for purity and potency.
Some states require smoke shops to source tobacco and vape products from approved wholesalers. Check your local state regulations before making any purchases or setting up an account with a supplier.
2. Direct-From-Manufacturer Sourcing
Working directly with manufacturers can reduce costs and allow you to private-label brand glassware, accessories, and custom merchandise. Here are some options for sourcing:
- Glassware suppliers: Look for suppliers that offer bulk discounts on pipes, bongs, and hookahs — but be aware that they often require higher MOQs.
- Custom accessory manufacturers: Brand items like grinders, rolling trays, and lighters help build out your shop’s custom product line.
While manufacturers can offer better pricing than wholesalers, be mindful of MOQs and shipping times to make sure you always have stock and won’t leave customers waiting for your most popular smoke shop inventory.
3. Online Wholesale Platforms
Websites like Faire, Abound, and industry-specific B2B wholesalers provide bulk ordering options from reputable suppliers. Prioritize quality control by requesting product samples and verifying compliance certifications before purchasing, especially for regulated items.
How Much Does It Cost To Stock a Smoke Shop?
The cost of your starting inventory will vary depending on your store size, which products you choose to carry, and what your suppliers charge. Here’s a rough idea of how much you might need to invest in each category:
- Cigarettes (bulk cartons): The wholesale cost of cigarette cartons in the U.S. varies significantly based on brand, location, and applicable taxes. For example, in Rhode Island, the wholesale price for a carton of American Spirit cigarettes (non-delivered) is $105.10, while in Minnesota, the wholesale price includes the manufacturer’s price plus additional fees totaling $172.79 per carton.
The typical retail markup is around 8.02%. Cigarettes are a high-turnover item, and the markup is often relatively low compared to premium products, but they still contribute to overall sales.
- Premium and machine-made cigars: Cigars have an average retail value of 35 cents to $10 per unit, reflecting the range and variability of cigar pricing at both wholesale and retail levels.
The typical retail markup for cigars is much higher than for cigarettes due to their perceived value and the demand from cigar aficionados.
- Rolling tobacco and papers: The average wholesale price for rolling papers and tobacco depends heavily on the brand and type of product. For instance, you can expect to pay 92 cents for Elements papers, but $2.15 per unit for prerolled cones from the same brand.
Retail markup for rolling papers is approximately 50%. These products appeal to a more budget-conscious customer, but the markup is still substantial compared to other tobacco items.
- Vape pens and e-liquids: Retailers can find disposable vape pens for as little as 99 cents per unit — however, branding, puff count, and nicotine level affect pricing. Vape products are in high demand, and the markup can vary depending on the type of device or liquid, with premium options yielding higher margins.
- CBD products (oils, edibles, flowers): Wholesale costs for CBD products vary based on the product type, quality, and local demand. For example, one Oregon wholesaler provides CBD shakes for $120 per pound and premium buds for $465 per pound.
Wholesale to retail markups for flower products are between 70 and 90% on average across various states. CBD items have gained massive popularity, and customers are willing to pay a premium for high-quality, lab-tested products.
- Glassware (pipes, bongs, hookahs): Wholesale prices for glassware vary depending on size, design, and features like percolators. Bongs, pipes, and hookahs can be sourced from wholesalers for $6. A wholesale gravity hookah set with advanced features can cost up to $688 per unit.
The wide range of products means the markup can vary, but the premium pieces tend to have much higher markups, making them a profitable part of your inventory. With the glass bong market expected to reach a value of $27 million by 2030, there are opportunities for retailers to profit as demand increases.
To keep upfront costs low, start with 50 to 100 bestselling products, then expand based on sales data from your POS system.
Top 3 Point of Sale Providers for Smoke Shops
After stocking your smoke shop, the next challenge is managing inventory. Using a specialized point of sale (POS) system designed for tobacco and vape retailers can simplify age-restricted sales, inventory tracking, and regulatory compliance.
Here are three leading POS options so you can find the best system for your shop.
1. Cigars POS
Cigars POS is built specifically for tobacco and vape retailers, with all the features you need to solve problems unique to your business, like age verification and compliance. It also offers retail tools to manage high-volume stock, analyze store performance, and handle employee management with payroll integrations, performance monitoring, and time tracking.
Key features:
- Age verification: Scan and validate IDs to prevent underage sales.
- Inventory management: Track unlimited SKUs with real-time stock updates and carton-pack inventory tracking. Set automatic low-stock alerts so you never run out of high-selling items.
- Scan data reporting: Create data reports on manufacturer discounts and pricing to maintain competitive prices for all your products.
- Loyalty program integration: Reward loyal customers with points on every purchase, which can be redeemed for later discounts.
Cigars POS offers flexible pricing options for small, independent shops and larger, multilocation retailers. If you’re just getting started, it provides all the tools you need to set up a profitable operation, with plenty of room for growth as your business expands.
2. Korona POS
Korona POS is a cloud-based software for various retail businesses, including smoke shops, liquor stores, and convenience stores. While not built specifically for tobacco and vape retailers, Korona POS offers customizable features to help with inventory tracking and multi-location management.
Key features:
- Cloud-based inventory management: Track stock across multiple locations from any device for real-time updates and remote management.
- Customizable reporting: Generate sales reports and analytics to monitor retail performance and identify bestselling or low-selling items.
- Cashier permissions: Set custom permission levels for each employee and allocate individual allowances for team members to maintain consistent pricing and prevent theft.
Korona POS offers a flexible subscription-based pricing model. The software focuses on inventory management, which is essential for a smoke shop, as well as standard features for general retailers.
3. Square
Square is a widely used POS system known for its user-friendliness and affordability. It’s a popular option for general retail stores and small businesses, offering an intuitive interface and straightforward payment processing. However, it lacks some specialized tools for smoke shop stores.
Key features:
- Personalized marketing: Send regular customers personalized emails or SMS messages about upcoming promotions or sales.
- Automated payroll: Create automated payments for employees and their tax filings.
- Inventory management: Track stock levels and generate sales reports from one POS system for multiple stores.
While Square is a cost-effective and easy-to-use solution, it does not include the built-in age verification tools or compliance tracking features you need for certain smoke shop products. You may need to perform manual ID checks or integrate third-party solutions to meet legal requirements.
Take Control of Your Smoke Shop Starting Inventory With Cigars POS
Purchasing your smoke shop starting inventory is one of your most important business decisions. But once you’ve stocked your shelves, you need an industry-specific POS system to monitor sales and stock levels.
Cigars POS helps you track inventory in real time, automate compliance reporting, and simplify checkouts all in one place. With Cigars POS, you take control of inventory and compliance management from day one, so you don’t encounter problems later.
Schedule a demo today to learn more about how Cigars POS can help you manage your inventory and build a strong foundation for your smoke shop business.
