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 number of questions to help us understand their service and what 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 purpose of selling Tobaccos? We also wondered if the business 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 start by explaining what an Electric Tobacconist does. In essence, an Electric Tobacconist offers his or her services to retail customers who order custom blends directly from him/her, rather than from the local Tobacconist. Electric Tobacconists essentially fills orders for the customer, based on availability, by way of a computer program. The program then offers a customized blend for that particular customer, which is distributed around 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, including the vaporizer and patches, are exempt from sales taxes in many states. This allows the business enterprise owner to charge full price for his/her product, because the product is not taxable. Many of the states that exempt the podsmall.com electronic smoking products from taxation actually 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, already have a combined sales tax on electronic cigarettes. Therefore, an e-cigarette vendor can save a significant sum of money in his establishment, and charge a high price for his or her 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 put a warning on their websites. In the letter, the FDA reminded the manufacturers that the merchandise were considered by the agency to be a tobacco product and they were therefore illegal to sell to people beneath the age of 18. Nicogen and Brightpearl had until September of this year to put a stop with their deceptive practices of charging high order volumes and then not delivering with their customers.
Due to these recent adverse conditions, it has become necessary for many companies to regulate their business practices. Many companies have faced unprecedented delays in receiving their initial shipment shipments of merchandise, while some have experienced extreme degrees of Customer Service Calls. It really is becoming increasingly apparent that the lack of communication between distributors and retailers, in addition to between wholesalers and dropshippers can be severely hampering Trustworthy, competitive electronic cigarette businesses. It really is unfortunately inevitable that once a business becomes too busy dealing with the unexpected circumstances which are constantly occurring in the marketplace, they may lose their track of who is best for his or her products, and could temporarily cease operations.
This situation is unfortunately becoming all too common amongst Internet Retailers. It will always be unfortunate once the industry is faced with so many uncertainties, nonetheless it is especially frustrating once the industry is confronted with so many uncertainties due to increasing demand and increasing supply. Many think that this situation has been made worse by the recent tragedies in the marketplace, like the unfortunate flooding in the Oklahoma City area. Although it is difficult to imagine what sort of product might lead to 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 way to obtain 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?” It is important to note that there are numerous different ways that cyber-risks are affecting the industry, however the most troubling issues are those that are impacting the future 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 for example vending machines and customer service counters. It really is unfortunate that the constant delays due to outages due to rain, earthquakes, and 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.
One way that cyber criminals are effecting the electric Tobacconist industry is by attempting 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 contains been used against a variety of businesses over the years. Actually, there is a popular for those who have criminal backgrounds in this industry to do something as contract workers at concession stands so that you can supply these companies with the labor that they need to keep the line open. There are various talented people willing to step into this entrepreneurial industry that can provide both good customer service and a high degree of service to businesses in need of electrician services.