cbd ecommerce

How to Sell CBD Online (Top Tips to Set Up and Market Your CBD Brand)

The CBD industry has experienced unprecedented growth in the last few years. As the laws regarding the cannabis industry continue to change, more players are getting into this lucrative venture.

If you are like most cannabis entrepreneurs, you have thought about selling CBD products online. Luckily, you have come to this post.

Here we shall take you through the exact things you need to do to set a successful online CBD business and get your rightful share in this vast market. The CBD industry is a lucrative venture, and thus it is imperative to do in-depth research to ensure you get the most out of it.

Let’s get started:

Understanding CBD

In simple terms, CBD is cannabis without THC. Notably (just like THC), CBD is an active cannabis component and is among the cannabinoids found in the cannabis plant.

Unlike THC, CBD does not have psychoactive properties. On the contrary, CBD is known to reduce psychoactivity (which explains why it may assist with anxiety, insomnia, chronic pain, among other issues).

However, whether a CBD product is THC-free or not is dependent on the way the cannabidiol was extracted and from what type of plant (hemp or marijuana).

Hemp-Derived CBD:

  • Less than 0.3% THC content
  • No psychoactive effects
  • Not included in the narcotics list

Marijuana-Derived CBD:

  • More than 0.3% THC content
  • Has psychoactive potential
  • Classified as a schedule-1 drug in most states

The Growing CBD Market

It is no doubt that the CBD industry is growing at lightning speed. Key market projections reveal that:

Knowing the reason behind the growing CBD sales is imperative. To that end, here are key reasons why CBD products have gained increased popularity in the last few years:

  • The 2018 Farm Bill made CBD more accessible: No matter how good a product is, if consumers cannot access it anywhere, it cannot succeed. The 2018 Farm Bill removed hemp from the list of controlled substances, making it more accessible to consumers. 
  • The stigma of cannabis is fading: The Farm Bill passage, alongside the legalization of cannabis in different states, has significantly reduced the stigma of hemp and cannabis.
  • Variety of CBD products are available: Lovers of CBD products are always looking for new products to use. Whether it is for themselves or pets, there is a need to provide consumers with a range of products to choose from.

cbd marketing services

The Legality of Selling CBD Online

As CBD business continues to grow, many laws are being established to regulate this industry. As an entrepreneur, you need to stay updated with the latest state laws and what they mean for your online CBD business.

Is CBD Federally Legal?

Before the 2018 Farm Bill, the federal law, all forms of marijuana (including CBD) were considered illegal. The Farm Bill legalized hemp production across the US (making it easier for you to sell CBD products).

However, CBD sellers need to adhere to the various restrictions on how hemp is produced:

  • Cannabis plants must have less than 0.3% THC
  • The secretary of USDA determines whether a state can license and regulate cannabis
  • Besides, violating the Federal Food Drug and Cosmetic Act (FD&C Act) when marketing your cannabis products will put you at loggerheads with the FDA.
  • Since there is little research on CBD in consumer products, sellers should not use unproven medical claims when marketing their CBD products.

Ideally, CBD with less than 0.3% is legal in the United States. However, any hemp-derived products that do not comply with the 2018 Farm Bill regulation will be classified as Schedule 1 substances under federal law.

What About the Statewide CBD Regulations?

CBD laws and regulations vary from state to state:

  • Some states limit the types of CBD products that require licensing
  • Some do not allow the sale and consumption of CBD
  • Some only allow industrial hemp-produced CBD

CBD laws are always changing. As such, you need to stay in touch with the current state laws in your state when selling CBD online.

Licensing for Your Online CBD Business

You need a business license to sell CBD online. You also need a resale license if you get your product from wholesalers.

Get a cannabis cultivation license if you plan to grow your own CBD. Of course, this is handled at the state level, so be sure to learn your state’s requirements.

THC-vs-CBD

Finding the Best CBD products/Suppliers

As an online CBD seller, you need to provide your customers with quality CBD products. To achieve this, you need to connect with a reputable CBD wholesaler. Here are some things that you need to look at from a supplier:

  • Sourcing: Choose a supplier that sources their CBD from the US, Canada, or Europe as they enjoy many years of growing hemp.
  • Method of extraction: Avoid CBD extracted using harsh chemicals as they may find their way to the final product (CO2 extraction is a good method of CBD extraction).
  • Claims: Avoid CBD suppliers that market their products by making medical claims (must have the FDA’s disclaimer).
  • Certificate of Analysis: Check a lab test report to confirm the levels of THC, CBD, and other cannabinoids in the CBD product.

Best Ecommerce Platforms for Selling CBD Products

CBD based products come in different forms, including:

Selecting the best eCommerce platform to sell your CBD products can be daunting. For starters, it is imperative to know that most eCommerce platforms are not cannabis-friendly.

Secondly, choosing the best platform for your CBD products isn’t easy with the many online stores.

Lastly, you could experience CBD payment problems as most platforms use third-party payment options.

The two primary options for selling CBD products include:

  • Self-Hosted
  • SaaS

Self-Hosted Management System (CMS)

WordPress and WooCommerce are popular website tools for businesses out there.

WordPress hosts a huge number of websites available today. It is easier to set up (almost anyone can create a simple website using their software) and use.

Of course, it comes with pros and cons, but it can help you if you need a simple website.

WooCommerce is specifically designed for WordPress and is among the primary eCommerce platforms. It’s highly customizable and comes with many different options, making it a reliable platform when setting up your CBD eCommerce store.

WordPress has a straightforward interface, while WooCommerce has a range of customizable options, making this combination a preference for many big eCommerce stores out there.

However, you need to connect with web design experts to get the most out of your WordPress site. Web design experts will ensure that your website is optimized and powerful.

Things like site speed, SEO, design, and branding might seem small but play a key role when building a reputable online CBD store. 

Experts at AlchemyLeads understand the ins and outs of creating and running a robust CBD online store and will use their expertise to make your online CBD business a powerful force in the CBD industry.

SaaS

SaaS (Software as a Service) is another best eCommerce option for CBD businesses. Shopify and BigCommerce are the two best CBD-friendly SaaS platforms out there:

Shopify

shopify-store-setup-for-cbd-brands

Shopify is among the most powerful platforms for selling your CBD products. Shopify introduced the option to sell CBD (in places permitted by law) in 2017.

Shopify offers better and unique design options for your CBD website. Besides, it provides added security features and customization options than other platforms.

However, CBD sellers on Shopify need to use a third-party CBD payment option because Stripe (Shopify’s payment processor) does not permit CBD sales as of now.

You don’t have to worry, though, because Shopify ensures a safe and secure transaction.

BigCommerce

BigCommerce is a good alternative for any eCommerce business (not just CBD). Besides eCommerce, BigCommerce focuses on branding and marketing.

Whether you are an experienced or beginner looking to build a robust online CBD store, BigCommerce will come in handy. You can easily set up, customize, and optimize your eCommerce website as you want.

The only downside to using Shopify or BigCommerce is that you will need to pay a monthly fee and don’t own the website. If they decide to close one day, your online business will be in limbo.

Setting Up a Payment System for CBD Orders

CBD is illegal at the federal level, coupled with the CBD’s high risk, making it hard for CBD sellers to receive payments.

Even if you sell hemp-derived CBD, you will still need to find a payment processor that can handle high-risk transactions.

PayPal and Stripe (two leading online payment processors) do not permit the sale of CBD on their platforms. You need to find a high-risk payment gateway to receive payment when selling CBD products online.

Some of the best CBD payment processors include:

  • USAePay
  • NMI
  • PayKings
  • Easy Pay Direct
  • SMB Global
  • PayWize
  • iPayTotal
  • PaymentCloud
  • Centurion Payment Services

AlchemyLeads Can Help You Stand Out in the Competitive CBD Online Market

When marketing your CBD products online, it’s imperative to partner with a CBD digital marketing agency like AlchemyLeads to help you in the way.

The experts at AlchemyLeads understand the auctionable CBD marketing tips that will help your CBD brand stand out in the pool of online CBD stores.

Sourcing quality CBD products alongside a better CBD marketing strategy is a sure way to take your CBD brand to a whole new level.

CBD digital marketing experts at AlchemyLeads will help grow your business using these strategies:

Mistakes to Avoid When Selling CBD Online

Now that you know how to sell CBD online, you want to venture into it right away, right? Before that, it’s imperative to know the common mistakes that new online CBD sellers make that you must avoid:

  • Ignoring research
  • Making medical claims
  • Slacking on the legal side
  • Going above 0.3% THC

Grow Your Online CBD Business with AlchemyLeads

AlchemyLeads prides itself in marketing CBD brands and suppliers to reach a wider audience. Our web design and SEO experts understand everything that it takes to run a successful online business, and they will be happy to use their expertise to grow your online CBD store.

At AlchemyLeads, we don’t do guesswork – we have everything you need to make your CBD eCommerce business thrive and stand out from the rest.

Whether it is the designing, optimization, and marketing, AlchemyLeads is your ultimate solution.

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