CBD is a huge market, one that is estimated to grow to around $1.5 billion by 2022. If you want a piece of this action, now is the time to get your foot in the door. There are plenty of opportunities to earn big bucks selling CBD oil products to consumers, online and offline, but before you jump in, here’s what you need to know.
Online vs. Offline
There are two ways to sell CBD oil and other hemp-based products. Companies like CBD Giants sell their products online, but if you want to build a local business, opening a retail unit might work better for you.
The main advantage of selling online is that it’s cheaper. Opening a retail unit costs significantly more money upfront than creating a website. Starting any business is a risk. If the business fails, you will lose the money you invested in that business. For this reason, many would-be CBD retailers start off with an online store and then open a retail store once the brand is well established.
The main advantage of opening a retail store is that customers can see your products and ask questions directly. This helps to put their mind at ease. Don’t forget also that you can stock CBD oil products as part of a wider range. For example, if you open a pet store, you can sell CBD oil products specifically for pets. CBD oil products also work well as part of a wider wellness group. In the end, though, only you can make this decision. Draw up a business plan and do the math.
Keep it Legal
CBD oil is legal in the US as long as it is derived from industrial hemp. All CBD oil products must contain less than 0.3% THC. Properly sourced CBD oil is fine, but ensure your products come from a reputable supplier, or you could fall foul of the law.
Always double-check whether products from your supplier meet the legal requirements for resale in the US. Products should come with a Certificate of Analysis (COA) to verify the purity, but you are free to send them off to a third-party testing lab to double check. If you are using a new supplier, it is wise to do this for your own peace of mind.
Don’t Make Medical Claims
Remember that you are not allowed to make dubious medical claims about any products you sell, even if anecdotal evidence suggests the product can do what it says on the box. The FDA does not support claims made by CBD oil supplies; make sure this message is clearly displayed on your website and in the store (if applicable).
Registration and Licensing
Register your business and apply for all applicable licenses before you start selling CBD oil. You can normally do most of this online. Next, open a merchant account to process payments, but be aware that you’ll most likely need to use a high-risk merchant account provider, due to the nature of the products.
Lastly, if you decide to sell online, consider using a content management system such as WordPress, as the drag & drop interface is very intuitive for beginners.
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