With cannabidiol added to anything from skincare and drinks, to pet food or ice cream, CBD is the hottest wellness product right now. With such a growing demand and so many business opportunities available, everyone wants a piece of this fast growing “pie”.
But although the CBD market is the new household star, many people are still finding this natural chemical compound confusing.
One of the most common mistakes a lot of the entrepreneurs wishing to get into the cannabinoid business are making, is to not have a basic knowledge about the products they are planning to sell. They don’t know much about CBD regulations, and they also don’t know how to explain what cannabidiol really is to their customers.
The CBD market is relatively new, and still waiting for FDA’s guidance regarding regulations, manufacturing practices and sales. This makes starting a new business in this industry a little more complicated. That’s why, if you are thinking of joining the CBD boom, you will first need to understand how this sector functions and what are the challenges you might encounter.
Keep reading to discover everything you need to know if you’re planning to start a CBD oil business.
What You Need To Know About CBD
CBD is one of the main chemical compounds found in the hemp and cannabis plants.
Both cannabis and hemp contain more than 100 substances, with CBD and THC being the major players.
THC is the psychoactive compound, responsible for the high sensation that many of the ones consuming cannabis usually experience.
CBD oil products are legal in most US states as long as they are sourced from industrial hemp, and their THC concentration is less than 0,3%. And here’s where the main difference between hemp derived CBD and cannabis derived CBD lies, making it a subject which is many times improperly explained to both retailers and consumers.
Cannabis plants contain more THC and less CBD, while the THC concentration in industrial hemp is usually below 0,3%, making its cultivation and harvesting federally illegal.
What You Need To Know Before Starting A CBD Business
Licenses And Regulations
Although you don’t need a license to sell cannabidiol products, if you are planning to buy from a CBD wholesale partner you will still need to apply for a resale license, as many wholesalers require you to have one.
Just make sure to discover what your state’s requirements are, as resale licenses may be handled differently under each state’s laws and jurisdictions.
Find A Certified Supplier
If you want your business to succeed in this competitive field, you will need to choose the right CBD supplier.
And this can be quite tricky!
Not all CBD products are created equal and that’s why selecting the right wholesaler should be carefully considered. When choosing a supplier, look at the quality of their products and make sure they are pure, clean and manufactured at the highest standards. Always ask about their harvesting and extraction methods, and make sure that there are no harsh chemicals used throughout the process.
Choosing the best practices of manufacturing will not only be beneficial for your business in the long run, but it is also safe for your clients. With so many dubious manufacturers on the market selling less than optimal products, you don’t want to harm your customers’ health.
Market Your Products
No matter if you are preparing to manufacture your own CBD products or you just want to resell them in your online shop, you need to think about differentiation. If your products don’t stand out among your competitors, it will be hard for you to build a solid customer base and increase your sale.
The last thing you want is your merchandise to blend with all the other CBD products available everywhere now, both online and in stores.
Among the most powerful strategies you could use in your marketing plan are:
- SEO Techniques
- Building an affiliate network
- Investing in content marketing
- Email marketing
- Working with influencers
- Starting a blog
Learn All There Is To Know About The CBD Market
Although CBD products are increasingly popular, their legality and usage is still all-confusing to customers.
As a retailer in this industry you should know everything about the products you are selling and learn how to explain the health benefits of CBD oil to your customers. Be prepared with answers for all their questions, as well as with usage guidelines. Many people are still confused about what CBD really is, and by wrongfully associating it with marijuana’s psychoactive effects, they can get turned off from using it altogether.