How to Open a Vape Shop in Australia (2025)
Whether you're a vaping enthusiast or you've recognized the vaping industry's potential, this is a prime time to consider opening your own vape shop. In Australia, the vaping trend is gaining momentum, with increasing demand for smoke-free alternatives. Getting involved in the vape business now can position you to capture a slice of this growing industry's potential.
But before you start making calls and importing all the available vape juices, hear us out. It takes more than just a burning enthusiasm to successfully run a vape store. But don’t worry, we'll walk you through all the essential steps to get your vape shop up and running.
And since that’s what you’re here for, let’s get the vaping show started!
Is Vape Shop Profitable?
Absolutely! Vape shops can be highly profitable. Vape shop owners in the US earn anywhere between $30 - $39k a month. However, since vaping and e-cigarettes aren’t as popular yet in Australia, your earnings will be less as compared to the above numbers. Moreover, you won’t instantly be making the highest possible income in your first month of opening your vape shop. But, the industry is getting popular which means the profits will rise in the coming years.
Steps to Open a Vape Shop in Australia
Here is a complete checklist to start a vape shop in Australia:
- Plan Like a Pro
- Understand the Legal Requirements
- Secure the Perfect Location
- Invest in a Vape-Shop POS System
- Think about the costs of opening your vape shop
- Secure Reliable Suppliers
- Go Online on Social Media Platforms
- Assemble the Dream Team
Depending on the scale and budget, the process can differ but the basic steps will be more or less similar.
Plan Like a Pro
Before you take the plunge, it's crucial to lay the foundation for your vaping business with a well-thought-out business plan. Don't worry, you don't need an MBA to create one. You can find handy templates online to kickstart your journey.
Your business plan should include:
- Your company's mission and brand identity
- A thorough analysis of your competition
- Your marketing strategy
- Financial projections
Your business plan is your compass, keeping you on the right path even after you've opened your doors. Download a free business plan by POSApt to get a head start.
Understand the Legal Requirements
Vape shops have their own unique set of regulations and licensing requirements, which often overlap with those governing traditional tobacco retail. The vaping landscape is dotted with different laws and rules, varying from state to state. It's essential to understand the legal web you'll be navigating in Australia.
Refer to the below table for state-specific legal requirements:
Pro tip: Consulting with local authorities is your best bet to ensure you're on the right side of the law. Don't miss this step; it could save you valuable time and legal headaches in the future.
Secure the Perfect Location
Just like a classic Australian saying, "She'll be right, mate." Your store's location is a critical aspect of your business success. Opt for a spot that's high in foot traffic, offers ample parking, and sports an inviting storefront. Remember, vaping is a hot trend, and Australians are embracing it. Don’t fear spending on decorations for your store. They are the key attraction points for the people passing by.
Invest in a Vape-Shop POS System
Yes, even a vape shop requires a solid Point of Sale (POS) system to efficiently and elegantly handle transactions and inventory. It's truly a time-saver, allowing you to focus on what truly matters to your business. And you don’t have to go too far to find the best vape shop POS system, we have just what you need. POSApt brings you all the features you need to smoothly run your vape shop at a very competitive price.
Think about the costs of opening your vape shop
It can usually cost anywhere from $50,000 to $250,000 to get your vape shop up and running. However, this number can vary depending on a number of things such as:
- Lease for your retail space
- Licensing and permit fees
- Business Insurance
- Payroll and taxes (especially if you plan to hire employees)
- Initial inventory
- Essential equipment (shelving, counter space, POS system)
Note: We have a detailed breakdown of the cost of opening a vape shop in Australia after this checklist.
Secure Reliable Suppliers
Your vape shop's success heavily relies on sourcing quality products that your customers will adore. After all, most vape shops profit from loyal customers who repeat every time their vape juice bottle is empty. So, you must make sure you provide your customers with the quality of vape products and juices that they came for. Make sure you always have a stock of all the products that your customers come to look for including:
- Vaping pods, batteries, mods and chargers
- Vape juices of varying nicotine levels, flavours, sizes and brands
- E-cigarette and vape starter kits
Go Online on Social Media Platforms
Remember that your audience is mostly young and the generation that’s constantly on social media. So, naturally, you should project your presence on the same social media platforms that your customers are. Create engaging videos, TikToks and Reels showing cool vape tricks, vaping devices and products. Share them on social media with your brand name and contact details. This will automatically bring you more online customers for no extra dollar spent.
Bonus Content: How to Promote Your Vape Shop
Assemble the Dream Team
Depending on the size of your vape shop, you might also want to hire a few intelligent and skilful staff. At the end of the day, excellent customer service is the backbone of your business. So make sure your employees are well-versed about all the vaping products in your store and know how to treat your customers.
How Much Does it Cost to Open a Vape Shop?
It can usually cost anywhere from $50,000 to $250,000 to get your vape shop up and running. Here's a complete breakdown of the typical expenses to consider when starting a vape shop:
| Cost Category | Estimated Cost Range |
| Lease for Retail Space | $30,000 - $60,000 (Annual) |
| E-Cigarette Kits and Accessories | $7,500 or above |
| Additional Accessories & Decorations | Around $20,000 |
| Point of Sale (POS) System | $1500 - $3000 |
| Insurance | $5,000 - $10,000 |
| Licensing and Permit Fees | Differs for different states |
| Ongoing Monthly Expenses | |
| Lease | $2,500 to $5,000 per month |
| Insurance | $150 - $300 per month |
| Payroll and Taxes | Around $3,700 per month (varies by staff) |
| POS Subscription | $100 - $200 per month |
| Miscellaneous Fees | Approximately $250 per month |
| Marketing | $0 - $1000 per month |
| Inventory Replenishment (not included) | Variable based on product demand and sales |
Note: These costs are estimates, and actual expenses may vary depending on location, business size, and specific circumstances.
Conclusion
So there you have it; everything that you need to know about how to open a vape shop in Australia. It’s certainly easier said than done but with the right planning, location and the above guidelines, your vape shop is set for success. So, take a deep breath, immerse yourself in the world of vaping, and get ready to light up the Australian vape scene!
FAQs
How much do vape shop owners make in Australia?
Vape shop owners make anywhere between $20k - $40k a month. The number varies depending on the store location, competition, and business strategy. The vaping community in Australia is growing and we expect this number to rise in the coming years.
What licences do I need to open a Vape Shop?
You’ll have to get the Specialist e-Cigarette Retailing Premises Certificate if you’re looking to open a vape shop in Victoria. Similar licences might be required if you’re opening your vape store outside Victoria. So, make sure to check your local authorities for specific requirements.
How old do I have to be to work at a Vape Shop?
In Australia, the legal minimum working age is typically 14 years. However, you must be 18 or above to do anything related to vape. So, we request anyone under 18 years old to refrain from doing anything related to vaping until you’re of age.
*DISCLAIMER: This article is for general information only. POSApt does not guarantee accuracy, completeness, or specific results from following this advice. Consider consulting business professionals for tailored guidance.