With the passage of recent cannabis and marijuana laws in the United States, CBD oil is becoming a huge market, one which is estimated to rise to approximately $2.1 billion by 2020. For eager entrepreneurs looking to capitalize on this expanding market, now is the time to dive into this industry.
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There are ample opportunities to make big bucks selling CBD oil products to consumers, online and offline, but before you jump in, here’s what you’ll have to understand about how to avoid controversy in your marketing and sales campaigns.
1. Promoting CBD Oil Online vs. Offline
There are mainly two ways to sell CBD oil and cannabis-based products. Businesses like CBD Giants market their products online, but if you are just breaking into the business, starting a brick and mortar shop may work better for you.
The principal benefit of selling through eCommerce is that it is cheaper. Launching a physical store has many more fixed and overhead costs associated than simply creating and maintaining a website on the internet. In addition, starting any business is risky. You could lose the money you invested in that venture if the company fails. Once the brand is well established many CBD retailers start off with an internet store and then open a retail store.
With a brick and mortar shop, the most important advantage is that your merchandise can be seen by clients in person and your customers can ask questions and expect a response immediately. This helps to put their minds at ease while they are going through the decision phase of the purchasing cycle. Also, you have the ability to stock a bigger selection of CBD oil products. For example, if you open a store, you’re in a position to market more specialized CBD oil goods, especially for pets. CBD oil products work as a part of a wellness industry that could expand your products’ reach.
Whether you choose to go through the internet or the retail path, you will need to look into payment processing solutions to accept credit card payments. Since the CBD and cannabis industry is considered high risk by payment processors, you’ll have to seek out processing solutions and a payment gateway to approve your CBD merchant account.
2. Make Sure it’s Legal
CBD oil is legal as long as it is derived from hemp. Each CBD oil product should contain less than 0.3% THC. If it derived any other way, you could fall foul of the law. Ensure your product comes from a supplier that is honest and that you trust.
Research if the merchandise you obtain from your supplier meets with the requirements for resale from the US or whichever country that you do business. Products should include a Certificate of Analysis (COA) to affirm the purity from an accredited lab, but you’re also able to ship them off to some third-party testing laboratory to double check. It’s sensible to do this for your own peace of mind if you are testing out new suppliers.
3. Stay Away from Medical Claims
Keep in mind that you are not allowed to invent medical claims about any merchandise you sell, even if news stories report the health benefits of CBD. The FDA does not currently support any health claims made by CBD oil suppliers. You need to make sure this message is clearly displayed on your website and in your store. Do your homework and make sure your information on the latest discoveries, uses, and regulations come from credible sources such as from the government or FDA.
4. Registration and Certification
Register your business and apply for all applicable licenses before you start promoting and selling CBD oil. You may do most of it through the internet. Next, open a merchant account to process payments, but be aware that you will probably need to find a high risk merchant accounts provider, not ones like PayPal or Stripe.
If you choose to market online, consider using a content management system like WordPress, as the drag and drop interface is intuitive for beginners. Have fun and be successful.