Refillable pods, synthetic nicotine, and bold new flavors are flooding the market — vape sales are projected to hit $8.18 billion by 2033. But launching a vape shop takes more than stocked shelves and an open sign.
Before you can sell your first device, you’ll need proper licenses, vetted suppliers, and airtight systems for age verification and compliance. Skip those, and you could face fines, shutdowns, or worse.
Learn how to start a vape business the right way with these six pro tips, and you’ll stay compliant, competitive, and ready to stand out in a booming industry.
1. Understand Vape Business Licensing and Legal Requirements
Vape businesses face strict oversight, with regulations that vary by city, state, and federal law. Before looking into the logistics of how to start a vape business, become familiar with the legal landscape, starting with licensing, zoning restrictions, and sales regulations in your area.
Here are the laws you need to know:
- Apply for a tobacco retail license: Register with your state to sell vape products legally in-store or online.
- Get local approval: Secure a business license and check if your city or county requires a separate tobacco or zoning permit.
- Enforce age restrictions: Set up ID checks at the counter and online to follow the 21+ rule across all sales channels.
- Follow PACT Act guidelines: Add age verification at checkout and require ID at delivery per the Prevent All Cigarette Trafficking (PACT) Act rules.
- Skip banned items: Some states (like Massachusetts) limit flavored liquids or disposables to licensed bars. Check local rules before you stock them.
Laws change often, so check official sources like the FDA’s Center for Tobacco Products and your state’s revenue department for updates.
2. Select the Right Vape Shop Business Model
There’s no one way to start a vape business, but how you choose to sell will influence everything from your startup costs to your daily operations. Most vape retailers select one of three models:
- Open a physical store: Build local traffic by allowing customers to ask questions, try devices, and pick up products in person. You will need to budget for retail rent, insurance, staff, and utilities.
- Sell online: Reach a wider audience without the costs of a storefront. Set up age verification at cart checkout, ID checks at delivery, and prepare monthly PACT Act reports.
- Run both sales channels: Sync your point of sale (POS) system to track compliance and keep stock accurate as you grow online and in-store.
Pick a model that matches your budget — local-first, online-only, or both — and scale from there.
3. Choose a Vape Shop Location and Store Layout
Your store’s location and layout impact all parts of your business, from customer traffic to legal product displays. Build a space that’s easy to manage and supports your selling plan.
Focus on these setup basics when starting your vape business:
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Find a storefront near similar businesses: Attract your ideal crowd by opening near places like smoke shops, tattoo studios, or convenience stores — places your ideal clientele already shop.
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Place the checkout counter near the entrance: Set up your POS system at the front so you can greet customers, check IDs early, and keep an eye on the floor.
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Design the store to match your brand: Use glass shelving for juice lines, LED-lit counters for devices, and bold signage or murals that reflect your store’s personality.
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Install cameras, dome mirrors, and a digital ID scanner: Record transactions, monitor hard-to-see corners, and confirm buyer ages before every sale to meet legal regulations.
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Prevent theft and highlight your bestsellers: Secure high-end mods, limited-edition juices, and glass pieces in keyed or magnetic cases while keeping them front and center.
The right layout and displays create a space shoppers are eager to explore — and make your daily workflow easier to handle.
4. Find Trusted Vape Distributors and Suppliers
Strong supplier relationships help your shop stay stocked, legal, and competitive. Shady vendors and sketchy deals can tank your shop before it starts. Work only with licensed vape distributors authorized to sell in your state.
Before you order, do your homework:
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Request proof of licensing: Ask for a tobacco or vapor product distribution license and check the expiration dates.
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Use verification tools: Some states, like California, offer distributor lookup databases through agencies like the CDTFA.
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Confirm shipping practices: Make sure the supplier follows proper packaging and labeling laws for your state.
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Check for transparency: Choose distributors that clearly list ingredients, batch numbers, and lab test results when applicable.
Cut corners here, and your shop risks fines, raids, or even permanent shutdown.
5. Decide Which Vape Products To Stock in a New Shop
Your product mix should be simple, popular, and easy to manage. There’s no need to stock every flavor or niche device right away. Focus on what sells, learn your customers’ habits, and build from there.
Begin with these steps:
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Prioritize bestsellers: Start with high-demand items like disposable vapes, top brand e-liquids, refill pods, and standard coils.
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Keep accessories basic: Offer chargers, cases, and cleaning tools — just the essentials.
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Watch for red flags: Avoid products with no batch numbers or suspiciously low prices.
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Monitor sales trends: Use your POS data to see which products are top sellers and which items are sitting on the shelf.
Then, expand gradually. Once you understand your customers, bring in new lines, higher-end devices, or unique flavors based on real demand.
6. Invest in a Vape Shop POS System and Inventory Tools
Running a vape shop means juggling strict laws, fast-changing trends, and tons of product variations — so your systems need to keep up. Choosing the right POS system is your legal lifeline.
Vape-specific platforms, like Cigars POS, help you stay compliant, efficient, and customer-ready from day one.
Look for a system that lets you:
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Scan IDs and log every age check: Record every sale properly so you're covered during audits or FDA inspections.
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See what’s selling in real time: Identify top sellers, catch slow movers early, and adjust orders as needed.
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Set auto-reorders for key products: Restock essentials like pods, coils, and disposables on the shelf without constantly checking inventory.
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Handle dozens of product variations: Keep your catalog organized even with dozens of variations.
Install your POS system early, run test sales, and train your team, so you’re ready to go by opening day.
How To Start a Vape Business Like a Smoke Shop Pro
Figuring out how to start a vape business? From day one, you need systems that verify ages, track products by flavor and size, and train your team, all while meeting federal and state rules.
Cigars POS can help your vape shop manage all the details. It scans IDs, tracks variants, and keeps records audit-ready, so small tasks don’t lead to bigger issues later on.
You also get tools to build loyalty from the first sale. Customers can earn points, get updates on new products, and remember your shop when it’s time to restock.
Book a free demo today to see how Cigars POS makes it easier to meet legal requirements and customer demand as soon as your vape store opens.
