The digital age has created new industries that are fast-growing. One industry in particular that has made waves economically and socially as of recent is the CBD market.
According to BDS Analytics, the leading researchers of CBD, market sales of CBD in the U.S. will reach $20 billion by 2024, at an annual compound growth rate of 49%. This forecast considers sales made through pharmaceuticals, dispensaries, and general retail (cafés, grocery stores, smoke shops). However, it’s predicted that most of the sales will be generated through general retail stores.
What Is CBD?
Short for cannabidiol, CBD is an ingredient found in the cannabis plant (which has two species: hemp and marijuana). CBD is non-psychoactive, which means that it will not evoke the feeling of euphoria or being high, unlike another cannabinoid called THC, which is mostly found in marijuana. Legally, CBD can only contain 0.3% of THC.
What Are the Benefits of CBD?
This natural ingredient has been praised for its plentiful health benefits. CBD is used to relieve chronic pain, reduce stress and anxiety, alleviate cancer-related symptoms, improve skin conditions, and manage seizures among kids. Ongoing studies show that it can also manage neurological disorders, such as multiple sclerosis and epilepsy. The compound is also believed to improve heart health and help with autism, schizophrenia, and diabetes.
What Are the CBD Products Being Sold?
So many CBD-infused products are popping up everywhere, and these include the following:
- Skincare essentials, such as creams, oils, lotions, bath bombs, and lip balms
- CBD-infused food items, such as chocolates, gummies, and burgers
- CBD-infused drinks, like beer, water, tea, and coffee
- Daily vitamins and sleeping pills
- Vapes
- Tinctures
- CBD-infused workout gear
You can find a variety of premium-quality CBD products at Cheef Botanicals.
How to Sell the Most In-Demand CBD Product Online
1. Obtain a License
Like any other types of business, one must obtain a license before operating an online store. This is especially true when you’re planning to sell CBD products. Usually, if you’re just starting out, a limited liability company license will suffice. Additionally, there are also resale licenses. These vary by state, so it’s best to check with your local laws.
Yes, CBD was made legal in 2018, but CBD products are, still, subjected to the Federal Food, Drug, and Cosmetic Act (FD&C Act) regulations, especially with regard to proper labeling. So, ensure that you and your staff are up-to-date on the rules so as to not get in trouble with the law.
2. Choose a Reliable Provider
One of the most vital things you must do is find a certified, reliable provider of your CBD products. The goods should be certified in federal and state terms. When researching a specific provider, try to find out if the extraction method they use is pure (CO2 extraction is the best), and ask if they use pesticides, plastics, or other toxins in their growing methods (this is a no-no). Also, avoid suppliers that exaggerate medical claims on their websites.
Finally, suppliers of CBD products need to observe proper testing. Ask for reports and certificates demonstrating that they frequently get third-party testing done. This is a confirmation that no contaminants are present in their products.
3. Build Your Online Store
This step is entirely on you, the owner, regarding how you want to present your products. As a start, here are the basic steps to help you successfully build your online store:
- Choose a reliable website creator, as well as an enticing domain.
- Carefully decide on the business name.
- Establish the logo, color scheme, layout, and tone of your text.
- Organize your products by type, as this would make it easier for your customers to navigate through your website.
The important thing to remember is consistency and to continuously grow your content (e.g. blogs) to drive traffic to your website.
4. Advertise Your CBD Products!
CBD advertising isn’t currently permitted on major ad platforms, such as Facebook and Youtube. Having said that, here are your best options for advertising:
SEO
Search engine optimization is one of your best options. SEO has to do with using proper, strategic keywords to increase the visibility of your website. Whether you hire an expert or learn how to do it yourself, an effective SEO strategy helps your site be above others in the search results page. This increases traffic levels, which means generating more leads, then sales, and, eventually, more profit.
Social Media
Social media marketing is another effective strategy. Remember, paid ads are not possible! However, creating your own content (Instagram posts, infographics, tweets, or blog articles) is allowed.
Here are the important things that content creators should always keep in mind:
a) Consistency. An active Facebook or Instagram page will catch users’ attention, keeping them interested.
b) Hashtags. Choosing the right hashtags is crucial in getting your posts seen. Make sure you choose one that is popular or trending. The hashtags should also be relevant to your target audience and product.
Another important thing to do when it comes to advertising is establish influencer relations and take advantage of email marketing (once you have a designated list of who your website visitors are).
Once your business starts to pick up, you can start a network with a team of affiliate marketers. Numbers have shown that 15-30% of sales are generated by affiliate marketers and advertisers, since your company is continuously being promoted.
5. Pick a Credible Payment Provider
Finding a reliable payment provider can be tricky in this industry, as CBD is currently not approved by all payment processors. A high-risk payment processor is what you need if you plan on selling CBD products. Here are some options you can look into:
- USAePay
- Square
- PayKings
- PaymentCloud
- SMB Global
- Easy Pay Direct
6. Sell Through BigCommerce
BigCommerce is becoming a popular way to sell CBD products, since it already has payment processes integrated into it and it can reach a wider audience. Here, you can customize your own store for no additional fees. It also allows you to manage returns, which can then be featured on other websites.
Conclusion
Although CBD is still a controversial topic, it’s an industry that is gradually and surely getting a better reputation. It’s a growing market that can really bring in good revenue to anyone who decides to start selling CBD products. Remember these quick steps: obtain a license, find a reliable provider, build an online store, implement the best marketing strategies, and look for a credible payment provider. Hopefully, this article can help you succeed in the CBD industry.
