Starting Online Hookah Store?

[Jeff_T]

niche market + economic down turn + too many online sites with the same stuff and no price difference = bad idea to start one in my personal opinion

i wish you the best of luck and i feel the suggestions given are nice

The economy will recover, that's a given. There are not that many online retailers honestly, compared to other markets. And I plan on price matching or beating competetor prices, I check other sites and they are charging more than I plan on, for example, I am going to sell the Mya QT for $35.

Shisha will be cheaper too, I am thinking like $7 for nak, $10.50 for AF, etc.

A QT for 35? I would say if you can build a good reputation, have a decent shipping price, and make sure you have the "https" in your address, you will be getting a bit of business. Main reason I don't buy a QT is they are 45 everywhere, too much $$ for such a small hookah.

I'd definitely say they are worth $45. The size pretty much has nothing to do with it, other than making it more portable. Its good quality and smokes like a champ, albeit its no KM, but still... If these are going to be around $35, I can't wait to see what other items will be priced at and I'll def be placing an order... Good luck, can't wait to check out the site.

hopefully everything works out for you man. I would love to have a retailer that is stationed in AZ!!! that means shipping to me should take no more than a day! haha Good luck man

Maybe local pick-up available so no shipping at all? Edited June 25, 2009 by Jeff_T

[Frankay]

Free shipping to Canada for orders over $100? I would be willing to buy over $200 for free shipping to Canada through USPS.

+1.

Good price for people from CAD/Quebec

[PhxKarma]

niche market + economic down turn + too many online sites with the same stuff and no price difference = bad idea to start one in my personal opinion

i wish you the best of luck and i feel the suggestions given are nice

The economy will recover, that's a given. There are not that many online retailers honestly, compared to other markets. And I plan on price matching or beating competetor prices, I check other sites and they are charging more than I plan on, for example, I am going to sell the Mya QT for $35.

Shisha will be cheaper too, I am thinking like $7 for nak, $10.50 for AF, etc.

A QT for 35? I would say if you can build a good reputation, have a decent shipping price, and make sure you have the "https" in your address, you will be getting a bit of business. Main reason I don't buy a QT is they are 45 everywhere, too much $$ for such a small hookah.

From my understanding, you don't need https to still have a secured SSL encrypted connection.

I have a lot of unexpected things to work on, such as a tobacco license and insurance, but I plan on opening before the end of the year, hopefully sooner .

I decided I might just stick with AF, Nak, AW, and SB to start. For SB I cannot decide if I should carry 100g or 250g.

I don't really plan on carrying 50g boxes, 250g all the way.

[Stuie]

From my understanding, you don't need https to still have a secured SSL encrypted connection.

Technically yes you can do this. I wouldn't. Being in IT for years and seeing people get their identities stolen. There are a lot of people out there that will not order. I never ordered form Build-A-Hookah.com even when they had their BOGOF promo of Fantasia for that very reason. The right Malware get's loaded on your site without your knowledge and I spend the next 9 months cleaning up my credit.

Best to pay someone like 1&1 or GoDaddy to handle it and make everything legit.

[colto]

From my understanding, you don't need https to still have a secured SSL encrypted connection.

Technically yes you can do this. I wouldn't. Being in IT for years and seeing people get their identities stolen. There are a lot of people out there that will not order. I never ordered form Build-A-Hookah.com even when they had their BOGOF promo of Fantasia for that very reason. The right Malware get's loaded on your site without your knowledge and I spend the next 9 months cleaning up my credit.

Best to pay someone like 1&1 or GoDaddy to handle it and make everything legit.

I'm not sure what you're getting at. It is just as easy to do the same with an SSL certificate, only you are doing it while making people feel more secure as it happens much less often from a vendor who is willing to purchase a cert (as they are generally genuinely concerned about keeping all the data safe).

PhxKarma - What is your plan for the actual site development? I am a web developer/graphic designer and specialize in e-commerce(web stores). I would love to do a store for a fellow hookah fan. I also plan to open up a shop doing custom (as in actually custom made not just configured with different bases/bowls/hoses/etc.) hookahs in 3-6 months and there would be a business partnership opportunity there as well.

As for your other questions:
1. Use actual shipping cost. It's the best way because the customer gets the lowest possible price and you don't get screwed over on shipping costs continually. However I would suggest to you to utilize multiple shipping carriers. By having a few different carriers you allow customers to choose whichever gives them the best deal. Though it may come at a slight inconvenience to you, customer satisfaction is something you want to always try and keep at the top of the list (well, right below actually turning a profit haha). I would also leave a little note on the shipping page about it. Let your customers know what you are doing for them! I can actually connect directly to the shipping carriers calculation models and get accurate (to the penny) shipping costs from them integrated into the shopping cart.

2. 50g boxes are good for people who are new to smoking and want to try out different flavors. They are also cheaper to buy and turn a bigger profit percentage wise. They are cheaper to stockpile and may help you gauge which 250g containers you should stock up on more and which you shouldn't. However they could also just sit there unsold if you get more hookah veterans coming to the site who prefer buying 250s, rather than newbies who don't know which flavors to buy (so they "sample" different ones in 50g boxes). One of the most important things to get newer people on your site is good SEO (Search Engine Optimization). You want to catch those who are new to smoking, don't know about HookahForum, and just search Google for a hookah shop. Good search engine placement and marketing bring in new customers, great customer service keeps them buying. Keep that in mind.

3. I definitely agree with your shisha choices. All of those are good shisha brands and yet they still cover the whole quality/price range. Edited June 26, 2009 by colto

[Sherwood]

Here's a fun question: do you have money? It was effectively impossible to secure a loan for a tobacco-related business 4 years ago. I imagine it is all the way impossible now.

You'll need cash for inventory, front end, CC fees, licenses, etc. I saw a complete online operation (a lousy one) for sale in Boulder, CO for $5000. You'll need to spend more than that, to be certain, and you'll need all of it upfront.

Also, have you negotiated relationships with importers other than Mya? You won't start with all of them, but you'll need to have a few connections to get started.

[PhxKarma]

I do web design on the side, never really worked with ecommerce before but I want to learn, I plan on using something like zencart. I am looking into GoDaddy since they offer the better encryption?

I want to appeal to the everyday smoker, like I said before this is not for me to get rich or anything, I just want to offer low prices and a variety of items, any money I make is going towards my wedding next year anyways.

I have $3000 right now, I have been working the numbers and I can get more than enough inventory for around $2000, the other $1000 will be for anything else.

[PhxKarma]

So what all exactly do I need?

From my understnading:

SSL Certificate
Domain + Hosting
Merchant Account for CC Processing
Business Insurance?

I am almost thinking of not carrying tobacco, and just sticking to hookahs, this blows. Edited June 27, 2009 by PhxKarma

[delSol_si]

So what all exactly do I need?

From my understnading:

SSL Certificate
Domain + Hosting
Merchant Account for CC Processing
Business Insurance?

I am almost thinking of not carrying tobacco, and just sticking to hookahs, this blows.

Hope everyone did scare you away from doing this, I'd really like to see you succeed if this is what you really want to do. I think everyone is just trying to warn you before you get in over your head and lose a lot of money. I really think talking to other online vendors is going to be you best bet, but then again, they are also your competition.

[delSol_si]

From my understanding, you don't need https to still have a secured SSL encrypted connection.

Technically yes you can do this. I wouldn't. Being in IT for years and seeing people get their identities stolen. There are a lot of people out there that will not order. I never ordered form Build-A-Hookah.com even when they had their BOGOF promo of Fantasia for that very reason. The right Malware get's loaded on your site without your knowledge and I spend the next 9 months cleaning up my credit.

Best to pay someone like 1&1 or GoDaddy to handle it and make everything legit.

Stuie is right, I personally will never order from a site that doesn't have the "s" on the end. Just not worth the risk. I just got done taking a class in college called Management Information Systems and one of the things the professor stressed was the little lock and the "s" and not to give out any personal info unless both criteria are met.

I also am taking a class right now called Accounting Information System and the chapter we are on right now is all about fraud, really eye opening how much fraud there is and how easy it is to get away with if you know what you are doing, just shows how careful a person needs to be. A hookah or some shisha is not worth getting my ID stolen or my CC info stolen. With the "s" and the lock, I feel safe, without it, I don't.

[PhxKarma]

Thanks for the info guys. I think it would be better if I either stick to just hookahs/charcoals/accessories, or just wait about a year and do it legit with a larger front end and better planning.

[ColibriDon]

Keep the prices low, everything stocked, speedy shipping, personal customer experience.

If you do these things, you should be on your way to start entering this market.

Disclaimer, you will have trouble keeping up with HC, HJ, H-S, and MNH in the beginning. If you can stick with it and gain a loyal customer base, you should do well.

[colto]

So what all exactly do I need?

From my understnading:

SSL Certificate
Domain + Hosting
Merchant Account for CC Processing
Business Insurance?

I am almost thinking of not carrying tobacco, and just sticking to hookahs, this blows.

Yes, you will also need to register your business and be prepared to fill out all the tax information.
I wouldn't go with GoDaddy though! There are far better hosts out there. I highly recommend HostGator. Their servers are a lot quicker as they don't cram as many people onto a machine as GoDaddy and others do. They have the best performance and customer service out of the 7 different hosts I have done business with, including GoDaddy. Check them out! I actually have an affiliate link with them but didn't want to put that on here as it would make me seem like I was just trying to make money off of you. My best recommendations is to read hosting company reviews and see what other people say about the companies you are interested in.

If you do like HostGator and would be kind enough to use my affiliate link to sign up then it would kick back a few bucks to me for referring you to their company. Like I said though I don't want to look like THAT GUY who posts his affiliate links everywhere and makes false claims trying to rake in a little cash. I just genuinely enjoy HostGator and have 6 sites hosted with them currently. If the moderators want me to remove my affiliate link I will happily oblige.

I am not sure about the shisha ordeal. I would do everything possible to sell that as that is what your repeat customers will be buying primarily. If it takes getting a second job for a month or two to pay the fees I would heavily consider it. Remember, if you launch with no shisha and a customer notices that, then they will probably not come back to check and see if you have since added it to your inventory. They are much more likely to just go to another vendor.

I personally would avoid Zencart as it is rather underpowered. Magento is what I have transferred all my sites to (from Zencart, Cubecart, and OsCommerce) as it is the most flexible and powerful shopping solution on the internet at this point in time. It is also open-source, gets updated frequently, and completely free. Zencart will work if you want to use it but I wouldn't use it over Magento.

Compare the demo versions of each.
Zencart Demo
Magento Demo Edited June 28, 2009 by colto

[Tyler]

For shipping, I love HJ's flat rate, but others who are closer or only order a box of coals or the like, get screwed. Offer an option to chose the type of shipping you want. Also, sell the exlusive items, HJ has CH coals, if you want them you have to order from him.

[colto]

For shipping, I love HJ's flat rate, but others who are closer or only order a box of coals or the like, get screwed. Offer an option to chose the type of shipping you want. Also, sell the exlusive items, HJ has CH coals, if you want them you have to order from him.

Well he *could* do that but he would lose money on shipping. The point of flat rate shipping is to even out the shipping for any item by losing money on heavy orders and making money on smaller orders. By giving the option then he would still lose money on bigger orders, but those buying smaller orders would choose the actual shipping cost which would mean he does not make the money he lost from shipping larger orders back.

[Zinite]

Either sell tobacco or pass on the idea entirely. Tobacco is the main part of the hookah experience. By not selling it, you're missing out on the largest part of the hookah market.

[EvansLight]

So what all exactly do I need?

From my understnading:

SSL Certificate
Domain + Hosting
Merchant Account for CC Processing
Business Insurance?

I am almost thinking of not carrying tobacco, and just sticking to hookahs, this blows.

Its a bitch getting everything ready to sell tobacco, but its worth it. You have no idea how many people loved MNH, but hated not being able to order tobacco from them too. People want a one stop shop, not to have to go to multiple places. As for hosting, i use and love hostdime. Pretty fast, and cheap, and damn good customer service. And yes you have to have full security for the checkout process. Most people won't buy without it.

[PhxKarma]

Thanks for the info guys, I think it would be better to start with a larger inventory, and do it right from the start, not rely on the profits to obtain the items and such.

I can put away another few grand in a few months, I have been working around 60 hours a week to save up for my wedding in January, and honeymoon in March.

I think instead of starting with a large inventory of hookahs, I am going to start with a variety of ones I know sell, such as the Mya QT. I would rather offer a better selection of coals and shisha, since thats what you reorder most.