How to Start a Vape Business

You have a passion for the vape industry and dream of starting your own business. But the complex web of regulations, sourcing, and branding feels overwhelming and intimidating.

To start a vape business, you must conduct thorough market research¹, create a solid business and financial plan², secure a reliable manufacturing partner³, navigate all legal and compliance requirements, and build a strong brand identity.

When I started in this industry, I saw countless brands fail not because they had bad products, but because they had no plan. They jumped in headfirst without understanding the law or their supply chain. This is why my partner and I built BAE Vapor⁴—to be the manufacturing partner that helps you build a real business. I've helped clients like Mike pivot from struggling with unreliable suppliers to building a thriving brand. Success isn't an accident; it's the result of a solid foundation. Let’s build yours, step by step.

How Do I Start a Vape Shop Business?

You dream of opening a physical vape shop⁵, creating a community hub. But high rent, local permits, and finding reliable inventory make it seem like a risky venture.

To start a vape shop⁵, secure a high-visibility location⁶, obtain all state and local retail licenses, partner with a dependable wholesale supplier⁷, and focus on creating an excellent in-store customer experience⁸.

A physical shop is about more than just selling products; it's about building a community. Your first step is location, location, location. You need foot traffic, but you also need to check local zoning laws to ensure a vape shop⁵ is even permitted there. Next comes the paperwork—business registration⁹, state tobacco/vape retail licenses, and sales tax permits. Simultaneously, you must forge a relationship with a wholesale supplier⁷ or a direct manufacturer like us to ensure your shelves are always stocked with high-quality, compliant products. Finally, invest in your people. Knowledgeable, friendly staff who can educate customers responsibly are your most valuable asset. They turn first-time visitors into loyal regulars.

Key Steps for a Physical Vape Shop

How Do I Start a Vape Business Online?

You want the lower overhead of an online store. But you’re blocked by strict shipping laws, payment processor rejections, and social media ad bans.

To start an online vape business, you need an e-commerce platform¹² with robust age verification, a high-risk payment processor¹³, a PACT Act-compliant shipping partner¹⁴, and a marketing strategy focused on SEO and content.

Selling vapes online is a different beast entirely. You can't just use any e-commerce platform¹² or payment processor. Mainstream options like Stripe and PayPal will ban you. You need to find a "high-risk" payment gateway that specializes in regulated industries. Your website must have a rock-solid, multi-step age verification system to prevent sales to minors. For shipping, especially in the US, you can't use the postal service. You must partner with a private carrier that is PACT Act compliant. Since you can't run ads on Google or social media, your marketing must be smarter. Focus on Search Engine Optimization (SEO)¹⁵ so customers find you, create helpful blog content (like this!), and build a community on platforms where you can engage with your audience directly.

How Do I Start a Vape Wholesale Business?

You want to scale up and become a supplier for other retailers. But the required capital, warehousing logistics, and factory relationships seem like a mountain to climb.

Starting a wholesale business requires significant capital, a solid logistics network for warehousing and distribution¹⁶, and a direct partnership with a manufacturer, often through an OEM/ODM agreement¹⁷ to create an exclusive brand.

This is the business model we operate at BAE Vapor⁴, and it's a major league operation. You have two primary paths. First, as a distributor, you buy huge quantities from various brands and resell them to retailers. This requires massive inventory investment and warehouse space. The second, more powerful path is creating your own brand via an OEM (Original Equipment Manufacturer) or ODM (Original Design Manufacturer) partnership with a factory. With OEM, we build your design. With ODM, you choose and brand one of our cutting-edge designs. This gives you an exclusive product that no one else has. Whichever path you choose, your success hinges on logistics—managing inventory, order fulfillment, and B2B shipping. It’s a capital-intensive business, but it gives you control over a larger piece of the market.

How Do Regulations Change by Location (Texas, Canada, UK, Philippines)?

You know your business must be legal, but every country and state has different rules. You're afraid of making a mistake that could shut you down.

Vape regulations vary dramatically by location, from state-level licensing in Texas to federal flavor bans in Canada¹⁸, TPD limits in the UK, and strict GHW laws in the Philippines. Always consult local legal experts.

I cannot stress this enough: there is no "one-size-fits-all" answer for legal compliance. What's perfectly legal in one place can get you fined or shut down in another. You must do your homework and hire local legal counsel. For example, starting a business in Texas requires state-specific permits from the Comptroller’s office on top of federal FDA and PACT Act rules. In Canada, you face federal laws on plain packaging and promotion, plus some provinces have their own flavor bans. The UK is governed by TRPR (the UK's version of TPD)¹⁹, which limits nicotine strength and bottle/tank size, and requires robust online age checks. The Philippines has its own comprehensive law, RA 11900, which includes graphic health warnings and strict retail environment controls.

Regulatory Snapshot: A Comparison

Conclusion

Starting a vape business is a marathon, not a sprint. Success depends on meticulous planning, legal compliance, strong partnerships, and building a brand that customers trust. Do the work upfront.