The CBD oil market is expected to hit $22 billion by 2022. If you want to cash in on this growing industry, read on to learn about CBD business opportunities and how to sell CBD Oil in your existing business.
What is CBD Oil?
Cannabidiol or CBD is one of 60+ compounds found in the Cannabis Plant. CBD oil contains less than 0.03% TCH. TCH is delta-9 tetrahydrocannabinol and is the chemical in marijuana that gives you that “high”.
Changes to the Federal Farm Bill has restrictions on the sale of cannabis and these changes are contributing to the boom in this industry.
How to Sell CBD Oil
There are many avenues to sell CBD oil but keep in mind at the core, a CBD oil business is a business just like any other. Like many other industries there are industry-specific requirements, read on to learn more.
How to Get Started Selling CBD Oil
Do you have a shop already? Will your shop be online or brick and mortar? There are different regulations governing each so make this decision early. Read on to learn more about selling in the cannabis industry.
Step 1: Create Your Company and Register It
Some might put this later in the process but for the CBD oil business you must have your legal entity set up and Federal Employer Identification Number (FEIN) BEFORE you apply for the permits and licenses needed in this industry.
If you are just exploring being a CBD Oil reseller, skip this part until you have completed your business plan.
Step 2: Create a Budget and Business Plan
If you do not have an online or retail shop already, you will need to start with a business plan. A quick google search will provide you with a template to get started.
If you have an existing business, pull out your business plan and be sure to edit it with CBD oil specific information.
Unique Aspects of Online CBD Shops
Online marketplaces like Amazon are everywhere. For the small business owner, opening an online market place is beneficial because 14.% percent of all consumer sales are online and that number is increasing. Online storefronts are also quicker and usually cheaper to create.
For the cannabis industry, not all online stores are willing or able to process CBD Oil Sales. Here are a few examples:
Shopify – Shopify is an online platform that allows you to easily create an online/e-commerce website. They handle all the back end processing so you don’t have to learn how to create a website while you are launching a new business.
Shopify will allow you to sell CBD products, however, their processor which is backed by Stripe will not. Your solution here is to use a different processor that comes at a higher price.
Cratejoy- Cratejoy is an online platform for companies that sell subscription boxes. It is a unique type of online shop and already has many CBD Oil Based Boxes. They too require a more expensive payment processor.
For the Online Shop, start with the payment processor and find the best one for your business, then back into the right e-commerce platform. Below is a list of several that process for CBD oil business.
- Leap, and
- Banc Certified Merchant Services, which is one of the largest.
Unique Aspects of Retail CBD Stores
First, verify that it is legal to set up a retail storefront in your area to sell CBD Oil. You should also determine if the location of your CBD Oil store supports its presence.
If you are passionate about CBD and want to change the world, we applaud you. But if the community you are building your retail store is adamantly against the industry, you are fighting an uphill battle.
Retail stores will also need sales processors, but you should start with what are the state requirements and restrictions.
Step 3: Determine the Licenses You Need
Are you only selling CBD oil or are you planning on selling tobacco products, too? Tobacco products require specific tobacco sales to permit from your city or state. Requirements also vary state to state so be sure to do your research.
Cannabis retailers have additional requirements that are often more stringent than traditional tobacco products. You can find the requirements for prospective cannabis retailers from your state’s department of commerce.
Keep in mind if you are selling both tobacco and cannabis, you will need to meet the requirement for both.
If you have questions about your state or federal regulations surrounding CBD Oil Regulation, contact an attorney who specializes in the cannabis business.
Step 4: Determine Your Educational Strategy?
There is a lot of misinformation and misunderstanding surrounding cannabis and CBD oil. What is CBD? How does it differ from Marijuana? Is Hemp included or not included in the current banned and allowed practices?
As a CBD Oil company, you need to understand the details of this unique industry. It is also in your best interest to stay up to date as the industry continues to evolve and change.
Now as a seller you need to translate this information into a format that your employees fully understand. So your employees can convey this information to the customer.
In this industry, the questions will come. Make sure you can turn the curious shopper into a loyal customer.
Step 5: Where to Find Your CBD Oil Needs?
You need to find a reliable CBD Oil manufacturer for your CBD needs. Some companies only provide the raw materials, seeds to grow the cannabis plant, biomass to extract the oil, or the crude oil its self.
Ready to Get Started?
If you are looking for CBD Oil, contact us. We only deal with farmers, extractors, and manufacturers and provide them with High CBD Genetics, High CBD Biomass, CBD Isolate, Distillate, and Crude Oil.