Selling CBD products online is probably the most common and profitable way of making inroads into the booming CBD market as a new seller. Even though CBD is legal, the selling of CBD oil is considered risky as it comes with complicated legal obstacles. That aside, the future of the CBD industry holds many opportunities to make a financial killing.The CBD oil market alone is projected to have a compound annual growth rate (CAGR) of 34.7% between 2020 – 2024, which would see it raking in a mammoth 1.3$ billion just in the US.
Quite exciting isn’t it?
To take advantage of this, it pays to read up on the existing Federal and State laws regulating the commerce of CBD products.Federal law allows the sale of CBD provided the CBD products you are selling contain less than 0.3% of tetrahydrocannabinol (THC) in accordance with the 2018 Farm Bill.The generally accepted CBD products to sell in states of the US would be the industrial hemp-produced CBD. These products have low THC levels, so you wouldn’t be flouting any state laws.
How to Sell CBD Online
- Register your business
Before you can start selling CBD, you have totake the necessary steps to set up your online CBD business. The first thing to do here is register your CBD business with the relevant authorities to get the necessary licenses. As a small enterprise, you would need a business license. If you intend reselling CBD products of CBD wholesaler companies, you would need to obtain a resale license.
- Find a reputable CBD supplier
Getting a CBD supplier that has a good reputation for manufacturing high-quality CBD products is very important. Your CBD supplier should be duly certified to sell CBD and also willing to share their Certificate of Analysis (COA) reports with you. The COA report would ensure you get quality assured CBD products from them always.
- Build an attractive, SEO website
To set your CBD business apart and maximize your exposure, invest in an aesthetically pleasing and user-friendly website. First off, you have to choose the right web platform. The platform you chose should adequately cover the scope of your business.Your website should also have a reliable payment gateway system, though this is tricky for CBD sellers. Some payment merchants, such as PayPal, do not allow payment for CBD products on their platform, as they classify them as high risk.
Additionally, you shouldfill your website with original, educative web content that is backed by a strong Search Engine Optimization(SEO) strategy. The SEO strategy is a tried and tested means of massively growing an online business, and can help you create powerful content that can educate and entertain your potential customers.
- Promoting your online CBD business
You can promote your CBD online business using various social media platforms. However, you might be limited in their use, as some social media platforms, such as Facebook, have placed restrictions on words like cannabis and THC. However, you can advertise your CBD products on sites like Ad Loop, Mantis and Traffic Roots. Also consider rolling out product promos and prized contests to generate web traffic from people who will eventually patronize you.
As you can see, there are a number of legal structures and marketing strategies you’ll need to create in order to succeed as an online CBD business. However, once you are able to do this, you’ll be able to start selling CBD online and generating profit in no time.