On the global e-cigarette supply chain, Shenzhen-based manufacturers have been selling puff 30k at an ex-factory cost of $4.2 a cigarette (with tax included) that is down by 28% from contract manufacturers in Southeast Asia at $5.8 a cigarette. Additionally, production time is brought forward to only 12 days, which is 40% shorter than industry standard of 20 days. For instance, a leading Shenzhen contract manufacturer has added a fully automatic oil injection and packaging line with a daily production of 500,000 units and a yield rate raised to 98.5%, while the Vietnamese factory has a yield rate of merely 90%. According to the General Administration of Customs statistics in 2023, the proportion of puff 30k exports through cross-border e-commerce B2B platforms reached 63%. Among them, during Alibaba International Station’s “Super Star Brand” promotion, its order quantity of wholesale increased by 320% year-on-year, and the minimum order quantity (MOQ) could be reduced to 500 pieces. The unit price is only 6.5 US dollars per piece (including shipping), reducing 25% of the cost compared to the conventional trading mode.
Compliance is the center of low-price wholesale. puff 30k has obtained the EU TPD3.0 certification and pre-audit of PMTA in the United States. Its e-liquid nicotine concentration mistake is controlled at ±0.2%, and the formaldehyde emission is less than 0.1μg per puff, meeting the import requirements of 56 countries around the globe. Let’s consider the German market as an example. Among the returned e-cigarettes in the second quarter of 2023 because they did not go through the TPD certification, the return rate of puff 30k was as low as 0.7%, which is significantly lower than the industry average of 8%. In addition, its dual CE+RoHS certifications have enhanced customs clearance efficiency by 50%. For example, the Rotterdam Port in the Netherlands has 24-hour express customs clearance for completely certified batches, whereas 3 to 5 days are required for regular goods. Based on figures from compliance service provider Intertek, wholesalers employing puff 30k have cut their losses from legal disputes by 92%, and the cost of compliance per year has fallen to $12,000 (per 100,000 pieces).
The price gaps in the channels of wholesaling are substantial. Regional websites such as 1688 give multi-level offers for puff at 30k: Unit price for single purchase is $7.8 / branch, 1000-5000, and above 50000 orders can be $6.2 / (VAT included), at the same time support the 30% advance payment + 70% cod financial mode, increase turnover of capital to 3.6 times yearly, Twice speedier than traditional letter of credit mode. For instance, one company trading in Yiwu lowered the logistics expense on the European line from 1.2 US dollars per item to 0.8 US dollars per item by operating the “consolidated container shipping” mode, saving a yearly procurement expense of 480,000 US dollars. The cross-border e-commerce platform Shopify’s independent station launched the “puff 30k Super Membership Program”. Over 500,000 US dollars per year in purchase amount, customers can enjoy a 5% commission rebate and a 90-day free overseas warehouse storage benefit. The turnover period of inventory has been shortened from 60 days to 20 days.
The regional market strategy also reduces costs. In the Dubai Free Trade Zone, puff 30k enjoys the policy of zero tariffs and a 15% reduction in corporate income tax. The buying price of local distributors is a minimum of 5.5 US dollars per unit, and the resale profit margin is 45%. For instance, in the 2023 VapeWorld organized in the United Arab Emirates, the Dubai Al Fakher Group subscribed to an order of 2 million cigarettes per year. Through utilizing the “48-hour transit” inside the free trade zone, it arrived in the Middle East and Africa market, and logistics efficiency was 60% higher than direct transportation from Europe. In the North American market, risks were reduced by ODM partnership – VaporFi Company of California customized exclusive tastes of puff 30k (e.g., “Blueberry Frost”), a purchasing cost of $7 per unit. It was sold at $14.9 per unit through local channels, and volume of sales was more than 300,000 units in the first month. The ROI is 110%. The size of the global wholesale market for disposable electronic cigarettes will reach 21.4 billion US dollars in 2024, as predicted by Frost & Sullivan. puff 30k, with an 18% cost-performance benefit and a 97% channel coverage rate, will continue to lead the low-price wholesale market.