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. Among the questions we asked them was what is an electric Tobacconist and just 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 rather than requiring a genuine 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 a power Tobacconist does. In essence, a power Tobacconist offers his / her services to retail customers who order custom blends directly from him/her, instead of from a local Tobacconist. Electric Tobacconists essentially fills orders for the client, based on availability, through a computer program. This program then offers a customized blend for that particular customer, which is made available to him/her at the time of order.
The interesting part concerning 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 full price for his/her product, since the product is not taxable. A lot of the states that exempt the 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 NY, California and New Jersey, actually have a combined sales tax on electronic cigarettes. Therefore, an e-cigarette vendor can save a substantial sum of money in his establishment, and charge a high price with regards to 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 they were advertising to children and teens and instructed them to put a warning on the websites. In the letter, the FDA reminded the manufacturers that the products were considered by the agency to become a Puff Bar tobacco product and they were therefore illegal to sell to people beneath the age of 18. Nicogen and Brightpearl had until September of that 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 essential 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 levels of Customer Service Calls. It really is becoming increasingly apparent that the lack of communication between distributors and retailers, as well as between wholesalers and dropshippers can be severely hampering Trustworthy, competitive electronic cigarette businesses. It is unfortunately inevitable that once a business becomes too busy coping with the unexpected circumstances that are constantly occurring available on the market, they may lose their tabs on who is best because of their products, and could temporarily cease operations.
This situation is unfortunately becoming all too common among Internet Retailers. It is always unfortunate when the industry is confronted with so many uncertainties, but it is especially frustrating when the industry is confronted with so many uncertainties due to increasing demand and increasing supply. Many believe that this situation has been compounded by the recent tragedies in the marketplace, including 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 community, it is also important to understand that the Internet is merely not free from risk. Exactly like all other industries that utilize the Internet as their primary way to obtain revenue, distributors and manufacturers must face the reality that cyber-risks pose a significant and unavoidable risk to their business structure.
Electric Tobacconists is one such exemplory case 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 which are impacting the future viability of the industry and overall profitability. Cyber criminals have 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 caused by rain, earthquakes, along with other catastrophic events have led to the increase in customers that are shopping for a simple solution to nicotine cravings without experiencing serious delays because of natural disasters.
A proven 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 tourist attractions. This type of cyber extortion is nothing new and has been used against a variety of businesses over the years. In fact, there is a popular for those who have criminal backgrounds in this industry to act as contract workers at concession stands to be able to supply these companies with the labor that they need to keep the line open. There are lots of talented people ready to step into this entrepreneurial industry that can provide both good customer support and a high level of service to businesses looking for electrician services.