The legalization of CBD products has opened up a big opportunity for entrepreneurs. It is estimated that CBD market will grow to about $ 2.5 billion by the year 2022. A big chunk of this market is likely to be CBD oil.
When it comes to buying CBD oil, most consumers prefer buying it online as it offers them huge benefits as compared to buying it from a local store. This is a big opportunity for an entrepreneur like you and this article will help you learn everything you want to know about opening and running an online CBD oil store.
Running an Online CBD Oil Store
First and foremost, you should know that selling CBD oil is legal as it contains less than 0.3% THC. THC is the component that is responsible for the high. Since the CBD oil does not contain adequate amount of THC, it is not going to make someone high.
Also, people who use CBD oil and have to undergo tests, have nothing to worry about as it’s not likely to show up on drug tests. Also, consumption of CBD oil has only minor side effects though taking it in higher than recommended quantities may result in stomach discomfort or drowsiness.
Finding a Supplier
The first thing you need to do is find a reputable supplier from whom you are going to buy products to retail online. You need to do some research in order to make sure that you are selling a high quality product to your customers.
One of the first things you need to look at is the source of the CBD oil. Keep in mind that the purity of CBD oil depends a lot on where it is grown. Also, farming practices matter a lot when it comes to the effectiveness of CBD products derived from the crop. So, make sure you find a source who gets their product from US or Europe.
Another important thing is the extraction method. As you are aware, there are several extraction methods available to get CBD oil. You should make sure that no harsh chemicals are used during the extraction process. In fact, CO2 extraction method is widely regarded as the best extraction method as it is safe and clean.
The wholesaler should offer you a Certificate of Analysis report. This report will tell you the levels of THC, CBD as well as other compounds in the product. You can refer to this report to assure your customers that the product you’re selling is pure and does not contain any impurities. A third-party test can always be done to confirm the potency and purity of the product being sold.
When it comes to making certain claims regarding the effectiveness of CBD oil, it is important that you buy the oil only from a source who does not make any health claims that haven’t been proved and are not supported by the FDA. They should carry the FDA’s disclaimer on their website.
As far as the price is concerned, it is important to shop around. However, it does not mean that you should choose the wholesaler who quotes the lowest price. If the price quoted by the wholesaler is much lower than the average price you expect to pay, it is likely that you are buying low quality CBD oil as it does not come cheap. So, stay away from suppliers offering to supply CBD oil at an unbelievably low price.
Some wholesalers not only supply CBD oil but also offer a variety of services including drop shipping as well as private labeling. You can use these services to cut down on overheads and run a more profitable business.
Opening a Store
Before you even think of setting up an online store to sell CBD oil, it is important for you to register your business. It will make you look professional and will also offer you protection from liabilities as setting up a business entity separates your personal and business liabilities.
Setting up a business also allows you to apply for loans, hire employees, find investors and other such things. You can easily find information on how to set up a business in your state with the help of your favorite search engine.
Most experienced wholesalers require their buyers to have a resale license. So, acquire a resale license before setting up a store.
Setting Up a Website
You will need to build a website in order to sell CBD oil online. There are a number of options available to you as there are dozens of platforms to choose from.
As far as choosing a website building platform is concerned, it depends on your business requirements and how you plan to build your business. Make sure the platform you choose allows you to sell CBD oil products. You also have the option of choosing a completely free platform such as WordPress and hire the services of a web designer to build a unique looking online store.
One of the biggest challenges faced by retailers selling CBD products online is that they find it difficult to find the right merchant processor such as http://thesoutherninstitute.com. You should know that selling CBD oil online is considered a high-risk business which means you will have to pay higher fees and charges. Also, not every merchant processor will allow you to open an account with them.
Thankfully, there are certain merchant processors that specialize in dealing with high-risk businesses such as those selling CBD products online. You will need to do some research in order to find the right partner for your business. You can also ask the wholesaler to recommend the right merchant processor for your store.
Marketing Your CBD Oil Store
When it comes to marketing your online store, you need to be smart with marketing. First and foremost, it is important that you never make any marketing claims, especially health claims that are not approved by FDA. You could get in big legal trouble.
You also need to keep in mind that search engines such as Google as well as many social media platforms do not allow you to advertise. So, you will be dependent on organic traffic. Some websites allow you to advertise your store through display ads but you will need to find such websites on your own.
Keep in mind that none of your competitors are also allowed to advertise which means there is a level playing field. The best way to get traffic to your online store is through search engine optimization, content marketing and social media.
While pricing is a big differentiator for customers, you should pay special attention to customer service. Make sure that you deal with every inquiry and every complaint, as quickly as possible in order to build your brand.
Overall, these are some of the things you need to keep in mind if you want to open an online store selling CBD oil products. So, double-check your health claims regarding the effectiveness of CBD products and keep the above mentioned tips in mind in order to build a successful online business selling CBD oil products.