Tobacco Business

[ 76 ] TOBACCO BUSINESS [ MARCH / APRIL | 21 ] The Digital Future Bendett has long been a supporter of brick-and-mortar, but he does see e-commerce and online retailers having a bigger role in the industry going forward. With brick-and-mortar retailers facing restrictions due to the pandemic and more consumers choosing to shop online for cigars, Bendett says that he feels online sales have the potential to capture a larger portion of the overall cigar market. He also doesn’t see the recent increase in cigar smoking slowing down any time soon since it’s a hobby that can be done in solitude or smaller groups while large events and gatherings are on hold. Online retailers face their own unique regulatory and legislative challenges, but Bendett feels consumer demand for more shopping options will help keep online tobacconists in business for some time. “While the risk is there, I like to believe that a full ban of online sales is unlikely,” he says. “First of all, the stated goal of such regulation is to keep tobacco out of the hands of minors. I take comfort in knowing that the nature of our product naturally weeds out demand from underage folks. Between the fact that most minors don’t even want to buy our cigars in the first place, combined with the new technologies we’re able to utilize to age verify every customer who orders from us, I am confident that we can easily continue selling online and achieving the stated goal of ensuring that we don’t supply tobacco to minors. In addition, the world economy as a whole is shifting more and more towards online shopping. With each year that passes, consumers view being able to shop online for whatever they want to be even more of an essential freedom. Legislation banning a legal product from being sold over the web appears more egregiously restrictive, outdated and impractical as e-commerce more fully entrenches itself in all of our lives. The current health crisis only magnifies the issue, having pushed our economy drastically towards the future of e-commerce in a short period of time.” Due to all of the uncertainty, Bendett tries to excel in both brick- and-mortar retail and e-commerce. His brick-and-mortar business allows him to serve his local customers while his online store opens his business to customers far beyond the borders of his community. For other retailers who are looking to better position their businesses for the future by taking their businesses online, Bendett’s first tip is to know that building and maintaining an online store is more complicated than one may think. “I’ve met so many shop owners who think they can just build a website, add a few items and watch the sales roll in. It takes much more than that,” he says. “You need to have a strong plan, a strong team, and a decent amount of startup cash. Sales don’t come right away, but you need to have staff, inventory and infrastructure in place to ensure the early orders are well taken care of. People aren’t just going to come to you either; you need to have a plan in place to spread the word and acquire customers.” It may seem like common sense, but in order to be a successful online tobacconist, one needs a quality website. Online retailers must compete against big-box retailers that have far more resources than most smaller retailers have access to. Having worked with a large retailer when selling his previous website, Bendett became more aware of what it would take to be a successful retailer and attract new customers. Maintaining accurate inventory is especially important for online retailers because customers aren’t going to continue to purchase from a retailer with inventory issues. Also, merchandising is just as important in an online store as it is in a traditional brick-and-mortar shop. Bendett tries to make everything he stocks in his store also available online. “The large portfolio is difficult to manage, but we want to set ourselves apart from companies who just try to streamline their inventory and business model by focusing solely on their top-selling products. We have endless hidden gems throughout our shop, and since a big part of the shop experience is finding those gems, we want our online shoppers to be able to do the same thing.” One of the biggest challenges Bendett and his team face is finding a way to organize the wide range of products that are available on the Scotty’s Cigars website in a way that makes them easy to find but not overwhelming. Bendett relied on his staff and their different perspectives to come up with merchandising solutions that would make things easy to find on the website while also showcasing the massive depth of the store’s inventory. Becoming Great According to Bendett, being a great tobacconist is the combination of many factors. It’s about showing up, being present, treating people the way you want to be treated, doing your best at all times and keeping good records. Being a great tobacconist is also an ongoing process because there’s always something to learn. Even though Bendett had previous experience in e-commerce, there’s a lot of technology that exists now that didn’t when he was running his previous online venture, as well as advancements in e-commerce that he’s having to learn about. With all of the uncertainty surrounding tobacco retail and the cigar industry today, Bendett strives to excel in both the brick-and-mortar and online arenas: “No matter which way the industry goes, my goal is to be in the best position possible to succeed.” TB GOING ONLINE Consumers are shopping for tobacco products like cigars online in big numbers, so you’re missing out if your store is offline. Many online retailers are selling the same thing for the same price, and the only way to set yourself apart is with the overall experience, explains Scott Bendett of Scotty’s Cigars. The following three tips will help you build an online tobacco retail business in no time. Integrate Early: Make certain that you have a system that brings together your retail operation with your online operation to ensure smooth inventory management on both sides. Reinvest Often: Put aside money to reinvest into your business and don’t just spend when times are good. Package it Well: Be sure that every order that ships out is packaged perfectly to ensure a flawless customer experience. These tips are key to building a long-lasting business that will survive and thrive over time rather than just be a quick flash-in-the-pan cash grab.