Members of the public had raised concerns the owner of the store was allegedly selling illegal vapes and tobacco to schoolchildren.
It prompted a visit from Dudley Council and police officials on Friday, when the stash of illegal items were found during a search.
Approximately £5,000 worth of cigarettes and hand rolling tobacco was found within a hidden compartment under the counter.
A further examination revealed more than 180 illegal disposable vaping pens, all containing dangerously high levels of nicotine.
Councillor Nicolas Barlow, cabinet member for health and adult social care, said: "This is an excellent result and I thank the member of the public who gave us the tip off.
"Their proactive action has resulted in illegal goods being seized and prevented them ending up in the hands of our young people.
"Shame on anyone who thinks is it acceptable to sell illegal goods but particularly on those selling to children.
"Thanks to the support of the police, we will continue our fight against illegal trading."
All illegal products were seized and the council will be pursuing further action against the operator of the business, which has not been named.
People can contact Dudley Trading Standards via an online reporting form or by calling 01384 814600.