CBD products can now be purchased in-person and online, in specialized boutiques, at natural health food stores, convenience stores, all over the US, and even internationally.
However, in spite of its ubiquitous presence, its growing popularity, and die-hard fans, it is still a largely misunderstood product.
What Is CBD?
Cannabidiol, or CBD, is considered a “cousin” to the delta-8-tetrahydrocannabinol (THC). Both compounds are in the Cannabis plant. It also contains as many as 100 additional variations of cannabinoids.
As opposed to marijuana, CBD is derived from industrial hemp, “an MJ plant variety” that has to contain less than 0.3% of THC on a “dry weight basis”. It also must be cultivated under a USDA-approved license. All this is to say that this will not produce a “high feeling”.
What The CBD Industry Looks Like
Since 2016, consumer interest in CBD products has skyrocketed. This could be due to its many research studies reporting various health benefits and the overall interest in the cannabis plant.
EAZE, a San Francisco-based cannabis delivery platform, named 2018 as the “breakout year” for CBD. This is because the number of CBD customers doubled from 2.6% to 4.8% with Baby Boomers leading the way in use.
Consumer Review also conducted a survey that found that more than 25% of people in the US have tried CBD at least one time in the last two years.
By the year 2025, the US retail market for CBD products is expected to reach $16 billion. This is well about the $2 billion mark back in 2018.
How You Can Start An Online CBD Business
In spite of the positive numbers and statistics, CBD is still coming under massive scrutiny from the US government as they enforce more stringent regulations on manufacturers for the “purity” of their hemp products.
There are ways to launch your CBD online business. Here are a few ways to start your CBD enterprise:
- Know Your Legal Obligations
Even though the Farm Bill of 2018 legalized industrial hemp and hemp extract in 2018, doesn’t mean that “regulatory considerations” no longer exist within the industrial hemp industry.
The FDA is still developing regulations. For example, the marketing of CBD as having health benefits is prohibited. It also forbids foods infused with CBD and beverages.
It is best to take the necessary precautions and follow their rules to be on the safe side. It is also critical that businesses remain abreast of new developments from the FDA and their regulations.
- Get Creative With Marketing And Selling
Today, with any new online business that you launch, you can sell your products on Amazon, Alibaba, eBay, or through paid ads via social media. Unfortunately, none of these avenues is an option for CBD products.
By setting up your own e-Commerce store and marketing your products by using an organic search strategy, you can stay within the safe confines and avoid being shut down. Consider implementing customer loyalty programs and avoid paid advertising. Like anything else, do your due diligence and research your local and state laws.
- Gain Competitive Advantage
In order to make a significant mark in your industry, you must develop a high-quality product that will weather the storms of scrutiny from both consumers and regulators.
Seek to provide “third-party lab testing results” to authenticate the quality of your product. Also, to further instill confidence in consumers about the quality of the product, consider seeking certifications like USDA organic, Good Manufacturing Practices, and FDA facility registrations.
The CBD Industry Is Lucrative, But Proceed With Caution
There is no question that the opportunity for growth within the CBD industry is unprecedented. In order to set your CBD online business up for success, follow the rules but get creative with your marketing strategies. It’s important to differentiate yourself from the rest.