Police on patrol discovered the device - a bottle with a flammable liquid - around 2:30 a.m. Wednesday in front of the American Royal Cigar store in the 100 block of Fayette Street.
There were also a backpack on the scene and spray-painted signs that referred to drug dealing.
"There was a bottle left behind containing fluid. It could be interpreted as being a Molotov cocktail, so the bomb squad was activated and they responded," said Sgt. Mike Conner of the Conshohocken police.
Before the bomb squad approached the suspicious items people from the apartments above the store were evacuated.
"We were asked to evacuate because of a suspicious-looking package out front," said Rick Ryan.
Police later said a backpack found there was empty but the bottle, which had a wick, contained a flammable liquid.
The owner of the American Royalty is La Valle Caesar Carter.
He told Action News that he had no idea why anyone would want to target his business by placing a potential explosive at his front step, or mention drugs.
The evacuated Rick Ryan was also surprised by what occurred.
"That's why I thought it was a hoax. It's Conshy, who would want to blow up Conshy?" Ryan said.
Police are still continuing to investigate this incident.