Did you know that 14% of Americans say they regularly use CBD products? There’s no denying that the CBD boom represents a lucrative opportunity for many sellers.
However, many merchants are hesitant to start selling CBD because they don’t know how to get started.
That’s why we made this CBD sales guide. In it, we’ll go over everything you need to know about selling CBD, whether it’s at a brick-and-mortar establishment or an online store. Let’s get started!
Is It Legal to Sell CBD?
Many people are often confused by the legal status of CBD. This is understandable since federal laws often clash with state laws. The good news is that at a federal level CBD is completely legal.
This is thanks to the Hemp Farming Act of 2018. This law states that all hemp-derived products are legal as long as they contain less than .03% of THC.
THC is the chemical compound found in cannabis that produces a euphoric high feeling. That means that CBD, which doesn’t get you high, is completely legal federally.
The bad news is that states still have the final say as to whether CBD is allowed.
As of the time of this writing, there are only three states that outlaw CBD. They include South Dakota, Idaho, and Nebraska. So, as long as you don’t live or sell to these areas, then it should be perfectly legal to sell.
Get the Proper Licenses
The first thing you should do before you sell CBD is secure the proper licenses. Start by registering and getting a business license. If you have a small business, then it makes sense to start an LLC.
That way, you limit that amount of liability if it fails. You should go to your state government website to find out how to register for a business license. Typically it costs around $100 so be prepared to pay that.
In some cases, you will also need a resale license. This isn’t the case if you’re manufacturing your own CBD to sell. But, if you’re purchasing from a wholesaler to resell, then you will need this type of license.
Different states have different resale licenses and permits. So, make sure to research what you need if you fall into this category.
Find a Good Supplier
Unless you have a CBD manufacturing operation (which can be quite costly), you will usually be buying your CBD products from someone else. You want to make sure that you vet any potential supplier before you buy from them.
After all, you don’t want your customers to get sick or hurt. Or else you could be facing legal trouble. So, ask about their products and get them tested by a third-party lab service.
That way, you know that they’re high quality and don’t contain any hidden ingredients. In some cases, hemp farms might test their products themselves. However, it’s still a good idea to get it tested yourself.
They should also be certified to sell both at a state level and a federal level.
Create Your Website and Merchant Account
We’re assuming that you plan on selling through an online CBD business. If you fall in this category, then you will need a functioning website.
If you plan on selling CBD products at your brick-and-mortar establishment, then this isn’t necessary. However, it’s still a good idea if you want to increase sales.
If you want to go the affordable route, then you can use a free website builder that offers eCommerce features. However, we recommend that you put some time, money, and effort into the site if you’re serious about sales.
That means purchasing a domain name and hiring a qualified website designer to build it for you. Regardless of which route you go, you will need a reliable payment processing system.
This is the main problem with CBD. Since it’s a high-risk industry only a limited number of merchants will accept it. Many popular sites, like PayPal, don’t accept payments from CBD products.
So, you will need to start a CBD Merchant Account with someone that accepts them. Make sure to find one that offers competitive processing rates. Merchants charge more processing for CBD since it’s considered high-risk.
Market Your CBD Products
Now that you have your licenses, CBD products, and websites, you’re ready to start selling, right? Well not quite. The problem is that there are a lot of CBD merchants out there that you need to stand apart from.
And, don’t think that you can take the traditional marketing route. Many popular methods of social media and video advertising don’t always allow you to market CBD products. In our opinion, your best bet is SEO marketing.
This is when you optimize your website and blog with keywords your potential audience is searching for. That way, it puts people interested in CBD directly in touch with your website.
It’s also a good idea to run promotions for new customers. Sales are a great way to attract an initial customer base. Then, when they see how good your products are they’ll keep buying from you.
Fulfill the Orders
You might be able to sell CBD products out of your home for a little bit. But, if you want to survive and grow, you will need both a warehouse and inventory management system.
You should also make sure that you get good customer service employees. Missing, stolen, or damaged online orders are bound to happen.
So, you want to make sure your customers are treated with respect and ultimately have their order’s fulfilled.
Appreciate Learning About CBD Sales? Keep Reading
We hope this article helped you learn more about getting started with CBD sales. As you can see, there are a lot of things you need to consider before you are selling this cannabinoid.
However, as long as you follow the advice in this article, then you can offer customers a safe, quality product that’s completely legal. Did you learn something from this article?
If the answer is yes, then keep exploring our site to find content that’s just like it.