The global wholesale market of disposable vapes shows a very regionalized nature. Shenzhen in China, as the headquarters of 70% of the global e-cigarette supply chain, the wholesale price for purchase through local OEM factories in 2023 can be as low as $4.5 per cigarette (with tax). It is 43.75% lower than the average price of 8 US dollars in the European and American markets. Let’s look at SMOORE, a leading producer in the industry, for instance. The MOQ of its standard orders is 100,000 pieces. It accepts customized nicotine intensity (0%-5%) and e-liquid capacity (2ml-12ml), and the production period is as brief as 14 days. And bulk purchase can enjoy an additional price discount of 15% to 20%. In line with the “2023 E-Cigarette Industry White Paper”, Shenzhen local small and medium-sized contract manufacturers have centralized raw material procurement model to reduce the cost of vaping cores to $0.3 per unit (industry average: $0.5), which has further reduced the wholesale price at the terminal.
The other low-price wholesale channel with high efficiency is cross-border e-commerce B2B platforms. Data on Alibaba International Station shows that the order volume of the disposable vape product line increased by 210% year-on-year in 2023. The procurement price of Turkish and Russian buyers through the platform averaged $3.8 per unit (logistics included), with an order of more than 5,000 units applying to a 5% commission rebate. Take the best-selling model Elf Bar BC5000 as an example. Its wholesale price across the border is as low as 3.2 US dollars per unit, 52% lower than the price of local distributors in the United States. More notably, some Southeast Asian sellers have used the RCEP tariff reduction policy to transit e-cigarettes produced in Malaysia through the Guangxi Free Trade Zone, reducing the total tax rate from 30% to 12%, cutting costs further.
The regional clearance channels in the European and American markets are suitable for medium and small wholesalers. In 2023, the US FDA compulsorily cleared non-PMTA certified disposable vape from the shelves, and 6.2 million pieces of inventory flowed into the secondary market at a clearing price of $1.5-$2 per piece, which was a 70% decrease from the original wholesale price. For instance, in August 2023, Los Angeles e-cigarette wholesaler Vapewholesale cleared mint-flavored inventories, offering a discount of $1.8 per cigarette for single orders over 20,000. In addition, industry expos such as Intervape in Germany offer limited-time buying promotions. Wholesalers signing up on the show website in 2024 can receive a quotation of $4 for the flagship model (normal channel price: $5.5).
For the demand of ultra-low costs, some buyers have turned to the duty-free zone in the Middle East. The e-cigarette warehousing service provider in the Jebel Ali Free Zone of Dubai has stabilized the wholesale price of popular models such as HQD Cuvie Plus at $3.6 per cigarette through the zero value-added tax policy, and supports 48-hour air logistics to Europe. The shipping cost is only 0.4 US dollars per item (7 days saved compared to sea transportation). According to Dubai Customs statistics, the total volume of disposable vape re-exported through this channel was 130 million in 2023, and the market share in the Gulf countries was 38%.
Finally, some wholesalers integrate the supply chain through social media to discover low-price sources. TikTok targeted advertisements for business accounts can also reduce the cost of purchasing by another 12%. For example, the wholesale price of the 2023 top-seller Lost Mary OS5000 through the influencer distribution channel is as little as $3.5 per unit, and it comes with a 30-day payment term. This combination of “direct sourcing from the origin + policy arbitrage + flow leverage” is reshaping the pricing mechanism of the worldwide disposable vape wholesale industry.