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How to Sell CBD Online
Moltin has been acquired by Elastic Path! The CBD market is booming and the growth of eCommerce will only amplify it. Now is the time to build and launch an online CBD store. Learn how to build your website and get the top tips for boosting your CBD sales. CBD is a budding business. Actually, the cannabidiol CBD market is booming, but starting this post with a pun was unavoidable.
Source Brightfield Group. People of all ages, backgrounds, and lifestyles seem to be avid consumers and it feels like almost everyone has experimented with various forms of CBD for one reason or another. While eCommerce sales only accounted for This is especially true with the passing of the Farm Bill which federally legalized the production and sale of industrial hemp in the U.
This in turn gives consumers easier access to CBD, and as we know today, convenience in shopping is everything. Positive public perception surrounding weed in general is on the rise as well and legislators on both sides of the aisle are looking to support the full legalization of cannabis. Source: Pew research Group.
Companies even sell CBD pet products. An expanded customer base means more potential sales and opportunities for your CBD business, but it also means you need to find and define your ideal customer and product.
The first step however, is making sure your business is legal. Without getting into the weeds, the high-level differentiation between the two is that the compound CBD is typically extracted from the hemp plant, while tetrahydrocannabinol THC , is extracted from the cannabis plant.
CBD contains minimal to no traces to THC and is non-psychoactive, so it does not affect the brain the same way that THC does also, if you caught that last pun, I promise there are only one or two more. While federally legal, CBD is still highly regulated both nationally and at the state level.
The Farm Bill shifted oversight from the DEA to the Food and Drug Administration FDA , which means there is a whole array of testing that needs to be done and labeling regulations that have to be meticulously followed. For example, as of July , anyone living in the state of Virginia can only buy CBD if they have a prescription. Finding a CBD distributor whose products comply with FDA regulations is vital, and just like your customers would expect to trust you as a business, you need to know you can trust your source.
There are many components to a CBD business, and your distributor is just one piece of the puzzle. There are a number of pieces you need in place to actually start selling and making revenue. If you already own a CBD shop, you can skip ahead to part 2. There are a number in the market today, both U. Many wholesalers in the U. With the Farm Bill in place, I would expect the national options to be on the rise.
Ecommerce platforms come in many shapes and offer a myriad of capabilities and features. There is no one-size-fits-all solution.
If you find yourself short of a web developer and need a solution that provides front-end themes, store templates, and other UI components out-of-the-box, companies like Shopify and BigCommerce might be a good choice. Platforms like these will also include other business critical features like shopping carts, but often provide flexibility when it comes to customizing. If you want to provide a unique shopping experience tailored to your brand and consumer and have decided to go with a custom front-end, you will need an ecommerce solution that provides core services and features like shopping carts, checkout processes, and catalogue management.
Payment gateways and payment processors are no different, but there are a number that specialize in helping high-risk businesses, or CBD companies specifically, such as PaymentCloud , or Authorize. Make sure that whichever provider you choose, you can seamlessly integrate it with your full eCommerce platform or cart and checkout process.
Without the ability to accept credit cards and process payments, an online store is pointless. Different taxes may also apply to different goods and depending on the state, so your shopping cart will need to be able to access the right data, and apply it accordingly.
Earlier in this post, we talked a lot about the extensive market opportunity that CBD provides business owners and how the rise of ecommerce is geared up to support the continued growth of the industry. Unfortunately, with opportunity like this, comes great competition. Everyone, from your next-door neighbor to your local coffee shop, gas station, and even multi-national organizations are looking to take advantage of this increase in market demand. This starts with you providing a custom, customer-centric online experience.
In this case, your website will have to do that for you. This is a key reason you see brands vying for the attention and support of influencers, which, is a great tactic to explore. Focus on increasing website traffic with an SEO strategy and blog posts. Start a blog and publish regular, educational and informational content. The goal here is to establish yourself and your business as an industry leader, or at the very least, as a knowledgeable and trustworthy brand.
Blogs are also a powerful tool to connect to other 3rd party CBD companies or industry publications. Leverage industry publications. Speaking of publications, there are a number of marijuana and CBD magazines and sites with both print and digital editions, all of which offer advertising in one form or another and have facebook and twitter followers in the thousands.
Take a look at some of our favorites:. I know, I know. Seems basic, but drive site visitors and blog readers to subscribe or leave their email so you can continue to send them information. This is huge. Due to limitations surrounding online advertising, you may want to place a higher priority on making it to in-person events. You might even meet a law firm or eCommerce platform that specializes in CBD.
You only get the true flexibility you need from an eCommerce site that has an API-based architecture that decouples your front-end from your back-end. This will enable you to create an eCommerce site with fit-for-purpose components and provide only the features you actually need. You can learn more here, about why a headless approach to ecommerce is the best option for regulated or high-risk businesses.
Let us know if you want to learn more about how Moltin can help you launch and manage your CBD business. It is a big week for the commerce industry.
On Monday, we finally shared the news that Elastic Path, a fellow leader in the headless commerce space acquired Moltin. In becoming part of the Elastic As we talk about the most prominent ecommerce trends to watch and adopt in , the same idea remains constant behind each innovation -- customers are seeking unique and personalized experiences As unbelievable as it may seem, the end of the year is upon us again.
Stay on top of industry trends with the latest blogs and articles from our eCommerce experts. Why Moltin? Choose the path that's right for you. Why you should look to start an online CBD Store 1. ECommerce in general is growing as well While eCommerce sales only accounted for Source: Pew research Group 4.
The bottom line is, consumers want CBD. The demand is there. The perceived health benefits of CBD, combined with the lack of psychoactive compounds, decreased negative public perception, and the array of products available is making CBD more appealing to a broader base of customers.
While proliferating among all age groups, one study found that CBD consumers are on average, about 40 years of age , have a higher-degree of education, and are more likely than non-consumers to be employed full time. A quick overview: CBD vs. THC Without getting into the weeds, the high-level differentiation between the two is that the compound CBD is typically extracted from the hemp plant, while tetrahydrocannabinol THC , is extracted from the cannabis plant.
This is a two-way street. As a business owner however, you need to ensure that your online CBD store is built to handle the varying regulations. Do not make health claims. The FDA has issued warning letters against making health claims. Some states have legalized medical marijuana and the grip on CBD is loosening, so the opportunities for researching cannabis and running studies to understand marijuana and CBD benefits are expanding.
Finally, your products have to be labeled correctly. Your label has to say CBD among other things. This is essential for you to not only ensure your FDA compliant, but for shipping carriers to acknowledge and mail your products. Certificate of Analysis COA. Make this mandatory and make sure you know how to read a COA report. Manufacturing facilities that meet these standards will be given a certificate, which is a good indicator for you that their practices conform to FDA and individual state guidelines.
Option 1: Pre-Built Templates If you find yourself short of a web developer and need a solution that provides front-end themes, store templates, and other UI components out-of-the-box, companies like Shopify and BigCommerce might be a good choice.
Option 2: Custom stores If you want to provide a unique shopping experience tailored to your brand and consumer and have decided to go with a custom front-end, you will need an ecommerce solution that provides core services and features like shopping carts, checkout processes, and catalogue management.
A note on cannabis-focused cryptocurrency You can accept payment types outside of the typical credit card payment. Accepting and processing cryptocurrency payments gives you a broader array of payment pathways you can give your customers, many of whom may be trading cryptocurrencies. From household names like BitCoin, to industry specific options like HempCoin , there are a number you can look at.
There is some concern that cryptocurrency as a whole will fail soon and that this link between industries will flop by association. Banking and payment processing.
We just walked through a short overview of why these are important, but finding a payment processor and merchant account for your company is probably one of the most frustrating parts of bringing your CBD business plan to life.
If you sell other goods and have decided to expand your product catalogue to include CBD, you already have these systems and providers in place. This means you may need more than one, and your back-end website logic will have to treat CBD products differently. This will add a lot of complexity to your site architecture and will require a higher-degree of customization in the back-end.
Tip for reducing risk: Build a website that decouples your front-end, or what the customer sees, from the back-end and take a component-based approach to building your eCommerce experience.
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In order to take advantage of this global movement, you need to know how to properly and legally market and sell your CBD products online. After all, competition is fierce, and with an increasing number of people choosing cannabis as a treatment for widespread illnesses, ailments and medical conditions, staying ahead of your competitors is key.
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How to (Successfully) Sell CBD Online: A 2020 Seller’s Guide
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COVID-19 Update
Moltin has been acquired by Elastic Path! The CBD market is booming and the growth of eCommerce will only amplify it. Now is the time to build and launch an online CBD store. Learn how to build your website and get the top tips for boosting your CBD sales. CBD is a budding business. Actually, the cannabidiol CBD market is booming, but starting this post with a pun was unavoidable. Source Brightfield Group. People of all ages, backgrounds, and lifestyles seem to be avid consumers and it feels like almost everyone has experimented with various forms of CBD for one reason or another. While eCommerce sales only accounted for This is especially true with the passing of the Farm Bill which federally legalized the production and sale of industrial hemp in the U. This in turn gives consumers easier access to CBD, and as we know today, convenience in shopping is everything. Positive public perception surrounding weed in general is on the rise as well and legislators on both sides of the aisle are looking to support the full legalization of cannabis. Source: Pew research Group. Companies even sell CBD pet products.
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