CBD has taken the wellness sector by storm over the last few years and is for sure a buzzword in USA business right now. The market is huge and ever-growing, with new supplements added regularly, and new customers learning of CBD every day. Want to get a piece of the CBD pie? Read on for some overview of how to set up your own CBD retail business!
What Is CBD?
Let’s address this first! If you don’t know already, you’re probably wondering what CBD even is! Well, that’s what we’re here for. CBD is short for Cannabidiol, one of the many extracts from the cannabis plant. In fact, CBD makes up about 40% of the extracts from an average cannabis plant. It is therefore a completely natural product, and legal in many places (more on that later). Cannabidiol and the other compounds within cannabis are usually extracted using a CO2 extraction method, making it safe for human consumption.
The CBD Market
Let’s discuss the market. The knowledgeable guys over at wholesale CBD Herb.co say that the CBD market could reach “$22bn in the next three years.” To put that into perspective, that’s roughly one-tenth of the size of the coffee industry. Now imagine how many coffee shops there are! CBD is just a rapidly growing market, with such a wide variety of products, it seems a no-brainer to get involved. Interested yet?!
Types of CBD Products
CBD now comes in a variety of products. The most common is oil because this is usually the form naturally recovered during most extraction methods. However, since it’s a boom in popularity, CBD manufacturers have created a huge range of CBD products now available to buy and sell, such as:
- Teas
- Vapes
- Lotions / Beauty Products
- Edibles / Foods.
Therefore, if you do decide to start a CBD business, you have a huge range of products to carefully select and retail.
What Does CBD Do?
CBD is often sold on the promise of relaxation, reduction of stress & anxiety, and as a sleep aid. Some also take it for help with PTSD and other medical conditions. It does not have psychoactive properties. So, though it is drawn from the cannabis family, it will not get you or your customers high! The other most common compound withdrawn from cannabis is THC, which does indeed have psychoactive properties when consumed by humans. This is a separate compound and would not be sold in any CBD products.
Purported Health Benefits
Doctors across the USA are starting to agree that evidence is mounting for the use of CBD in various conditions. However, they err on the side of caution when it comes to believing every single health benefit touted by CBD companies. There is strong evidence to suggest CBD is helpful in aiding sleep. There is also mounting evidence that anxiety and depression symptoms are somewhat alleviated by CBD products. There is a concern, however, that many of the topical treatments sold with cannabidiol in them may not work at all, as they have not been tested enough to prove either way.
So, Let’s Get Down To Business
1. Check The Local Laws
With a product like CBD, it’s always best to check the laws in your country or state before making any decisions. The federal government in the United States allows CBD products to be sold as long as the THC content does not cross the upper limit of 0.3%. If you are outside of the USA check with local lawmakers and look online for advice. In some places, hemp-extracted CBD is allowed but marijuana products are not, so make sure you scrutinize your local laws before starting.
2. Decide Which Products To Stock
As previously discussed, there is a vast and varied world of products to sell through your online CBD business. Market research says that CBD oils are still the most sold products in the market, but these things are constantly evolving and changing over time. Stock a variety, and keep your finger on the pulse with other popular CBD products in your area. People like taking CBD in all sorts of different ways. Consider vapes, teas, and edibles as extra stock to support oil sales. All these products come in different strengths, so ensure to sell all levels to interest first-time buyers and seasoned pros.
3. Make A Plan
Where would any good business be without a solid business plan? Online retail is an easier place to start than most, you may not need premises to start with, and you can talk directly with suppliers and customers online. Make sure you consider the outgoings of your online business and forecast your sales. Also, be sure to register your business properly with your government.
4. Find Your Suppliers
There are now many people manufacturing and supplying CBD products to the market. We recommend searching around for a pool of suppliers to later compare. Reach out to some of their other clients, and see if you can find customer reviews of their products. It is a lot easier to take some time to do this in the beginning, rather than finding out further down the line that you’re selling a second-rate product.
5. Build Your Webstore
Time to get technical. There are now hundreds of reputable online store services, which will charge a small subscription fee or a percentage of your sales. This is the easiest way to get started, as it requires no coding ability or design skills. If your company becomes more successful you may want to have a team build you a bespoke web store, but for now, stick with the tools out there. You can be set up in no time!
6. Create A Name For Yourself
Literally, choose a name! Think of a catchy and memorable name for your store. Think about your clients and what they may find interesting or fun. The choice is yours! After this, design a simple logo, flyers, and business cards. Or, again use an online service to help you do these things. Get your name out there as the best CBD supplier in town!
So there are the simple steps to follow when considering opening a CBD retail business online, along with a host of information on the product itself. Hopefully, you are now equipped with everything you need to get started. If you choose this is the business for you then best of luck!
