Do you want to sell CBD online? If yes, this article is just for you!
Medical cannabis is one of the hottest products on the US market today. The best yet is that we have just started to learn about its therapeutic features.
Don’t be surprised if, in the near future, people start using CBD for various symptoms and conditions such as pain, inflammation, muscle spasms, etc.
You can buy CBD items almost anywhere. Numerous prominent companies in the US are offering various products to their users.
Medical marijuana has become a major online hit, and companies are doing their best to start selling CBD as soon as possible.
The number of products increases every day, and you can see marijuana-infused edibles all over the place.
Unfortunately, there are still some significant issues that are preventing entrepreneurs from selling CBD on the internet.
You can’t simply create a site and start making money; various legal and marketing matters need to be addressed beforehand.
If you wish to sell CBD online, you will need to make all the necessary preparations.
So, what do you need to know? How can you reduce potential risks? Read this article to find out!
What is CBD cannabis?
Proactive entrepreneurs are often willing to start a new business while having limited knowledge of the market or the product. This can be really troublesome if you wish to sell CBD online.
As you well know, anything related to weed will have a hard time reaching the market. Although there are fewer legal barriers nowadays, some states still prevent cannabis sales.
Although your regular psychedelic marijuana is still a taboo, more and more states are willing to consider medical marijuana or CBD.
How does CBD differ from your regular cannabis?
CBD stands for cannabidiol, which is one of the two main active substances of the cannabis plant. The other one THC or psychedelic substance.
Cannabis consists of various cannabinoids, among other, cannabidiol. It is a substance that may improve your health by addressing multiple mental and physical symptoms.
Most people know about pain relief, but did you know that CBD marijuana may also help with depression, anxiety, PTSD, muscle spasms, insomnia?
There is a wide array of conditions that cannabis may treat, and we are just starting to scratch the surface.
Why did marijuana become so popular suddenly? Shouldn’t we be worried about THC and its impact on the brain?
The product known as “CBD marijuana” doesn’t have THC, which was previously the main issue. Now, you can use this plant for various medical conditions without having to worry about the psychedelic effect.
According to our current knowledge, and based on extensive studies, CBD marijuana doesn’t cause any side effects. You can use it without worrying; for a shorter or longer period of time.
However, there are still numerous countries and states that haven’t legalized the plant.
The expansion of the CBD market
The United States CBD market is literally booming right now.
More and more companies open their doors each day. A lot of them are web-based businesses that can ship their merchandise all across their home state.
The demand for these products is rather high, and at this point, there is no indication that it will stop any time soon. Some people are afraid of this; it seems that the market is quickly becoming saturated.
Indeed, this can cause some issues, given the limited CBD marketing opportunities (we will talk about this a bit later, so make sure to stick around!)
But, even though the competition seems scary, there is a lot of room to branch out and build your brand. Here are some things that you need to know about the US cannabis market.
1) The CBD market is worth billions of dollars
There is a good reason why everyone is rushing to the CBD industry: the potential profits are enormous!
According to some financial projections, this market will be worth around $20 billion in the next few years.
The best thing yet is that this item can be used for various chronic conditions and symptoms.
In other words, most customers will buy the product over and over again as long as you don’t make any significant changes to it.
2) The agricultural stimuli
But, there is another reason why this market is increasing so rapidly.
The secret lies in 2018 Farm Bills that make hemp production legal all over the US.
The hemp plant has much more CBD and is usually grown for CBD marijuana. As long as you monitor THC content, there shouldn’t be any trouble growing this plant
3) Legal improvements
The main reason why CBD marijuana is not used in every state is that we have limited studies to back medical claims.
However, as time goes by, and we gather more data, it’s becoming clearer that we can benefit from the plant in numerous ways.
Still, weed remains a controversial subject, partially due to our preconceived notions about the plant.
On a federal level, you need to make sure that every cannabis product has less than 0.3% THC. Only then can you grow it, resell it, and use it.
FDA keeps a close eye on cannabis companies, and there were a few cases where they completely shut down marijuana growers’ projects.
Marijuana laws vary from state to state. In some states, you can use pot in any form. In others, you can use only CBD marijuana, while some states prevent the use of cannabis in any shape or form.
There are also some variations when it comes to transport and possession. It is best to get acquainted with all these laws before you decide to sell CBD online.
How to sell CBD online?
Now that you got legal stuff out of the way, it is time to set up the stop.
Creating your own cannabis store isn’t that hard; all you need to do is follow a few simple rules. You will also need an actionable plan that will guide you throughout.
The marijuana entrepreneur will have to consider things such as product line, cannabis marketing, and e-commerce strategy.
1) Get the necessary licenses
If you wish to sell CBD and medical marijuana in the US, you will need to required licenses.
First, start with the simplest one: the business license. We recommend that you get an LLC.
It is the most common type for small businesses, which also includes web marijuana stores. You can learn more about it on your local government’s website.
If you wish to resell marijuana, you will need another license. They are also done on a state level, so you will have to be acquainted with your state’s rules.
Generally speaking, it shouldn’t be too hard. The process has become simplified through the years which will allow you to set up shop rather quickly
2) You will need the right supplier
Nowadays, there are a lot of weed growers in the US.
As the plant becomes more mainstream, people are starting to grow it themselves. Nevertheless, most cannabis entrepreneurs still purchase their weed from a supplier.
You will need to make sure that your CBD supplier is the real deal. First of all, we suggest that you buy cannabis from reputable stores. You can easily do research by simply browsing the web.
After that, you will need to see if the person has all the necessary certificates for marijuana. It is also good to buy from a supplier who has a vast product line. That way, if you wish to increase your assortment, you won’t have to hassle by contacting another cannabis store.
You should also establish the quality of a company’s marijuana. There are lots of laboratories that are testing cannabis so you shouldn’t have trouble finding an impartial tester
3) Create a powerful website
The website is a modern business card. Most people make the first contact with a cannabis company through their site.
First, you should start by finding the right domain name. This might sound easy, but you need to find a name that will resonate with your clients and still be able to rank in Google.
It is also imperative that you find the right provider. Although this might sound unimportant, it becomes crucial as your company begins to grow. Keep in mind that any issues with a hosting provider will lead to a loss of profits.
You will also need to find the right e-commerce platform. Having good e-commerce will also save you a lot of trouble down the line.
A good platform should be clean, responsive, and intuitive; you shouldn’t waste any time on rudimentary things.
When creating a website, you need to implement proper practices that will help you with marijuana SEO (search engine optimization). Otherwise, you will never be able to rank in Google and other search engines.
Lastly, make sure to find a reliable credit card processing, and to create a list of policies that a user can easily find
4) Create a good marketing strategy
Online marketing is the thing that makes or breaks a website. You are able to get away with almost anything else, but if you don’t have the ability to generate leads, you will quickly go out of business.
The cannabis business is probably one of the trickiest industries when it comes to advertising.
Even though some states allow the use of weed (both medically and recreationally), the federal law is still against the plant.
Also read: 10 Best Cannabis Business Social Networks
Even if you try to promote CBD cannabis, you can get in trouble. So much so that the main advertising platforms and services (such as Google Ads and Facebook Ads) prohibit any promotional activity that involves the plant. So, your best bet is to either try SEO or, to a smaller extent, SMM.
There are no limits when it comes to search engine optimization. If you hire a reputable cannabis marketing company, you can do wonders with your site.
Keep in mind that this industry is still not saturated, which gives you a lot of space to position your brand.
In fact, it is much harder to optimize a site in some more traditional industries than it is in the cannabis industry.
The other alternative is to start building your social media accounts slowly. But, keep in mind that this will be a rocky road as there are certain limitations.
Like with social media ads, you shouldn’t post anything on your social media accounts that is remotely promotional
5) Finalizing the orders
Lastly, you will have to find the right way to tie all of this together. If you cannot process the orders and ship the merchandise, you will fail at the last step of the way.
You will need a warehousing system for CBD cannabis. You will also need the right software and infrastructure that will allow you to store and manage marijuana inventory.
There are lots of things that you need to consider here, but it is much easier if you’re a reseller. All you need to do is to order from a supplier and send the product to the end-user.
It gets more difficult if you’re a grower. At one point, depending on how well you’re doing, you might have to consider leasing storage.
Fulfillment technology is the key as you will need software that works well with your e-commerce platform, payment, and other software
Still want to sell CBD online? Be prepared for these issues
Even if you managed to set up everything, you would have to deal with numerous daily challenges.
Although this industry is massive, it is still not that well regulated, which can cause problems for new entrepreneurs.
Here are some of the things that can be tricky down the road:
1) Getting a piece of the market
- Are you able to outrank competitors for some of the most popular CBD keywords?
- Can you create content that ranks in Google?
- Do you have a good SEO cannabis marketing team?
- Are your products competitive enough?
- What are your competitive advantages?
2) Managing regulations
Managing regulations can be really hard, especially in the US.
Not only do you have to consider the federal legislation, but also the state laws. In the last decade or so, these laws have changed quite often.
Although things are getting better for cannabis companies, that doesn’t mean they will remain the same. Entrepreneurs need to stay on top of things.
It is also important to create company policies that will reflect those laws.
3) Fulfilling orders
The last major challenge for cannabis companies is fulfilling orders.
It can be tough to implement a proper system. This is especially true for volatile or unregulated industries where things change every month.
In fact, based on the current state of affairs, there is a good chance you will change several suppliers during your company’s life cycle.
Selling CBD cannabis online can be really rewarding and tiresome at the same time.
Medical marijuana is definitely on the rise, and proactive entrepreneurs have already recognized this opportunity. If you want to compete in the market, you will need proper planning.
If you follow our definitive guide on “How to sell CBD online” and implement all the suggested processes, you will have a major head start.
Keep in mind that you will also need the support of a good cannabis marketing team. With them in your corner, your business will quickly flourish!