CBD has become increasingly popular over the last few years, and not just among people who are “in the know” about health supplements or alternative medicine, as it is now a mainstream product that can be found in caffeinated beverages, beauty products, and balms. CBD has become a household name and can now be found in some form or another in almost any health store imaginable. Due to it’s increase in popularity, which has seen the industry grow to a worth that exceeds $23 billion, you may have considered starting your own CBD business but are not sure where you should start. If this is the case, here are a few tips.
What is CBD?
CBD is an abbreviation of the substance cannabidiol, which is found in the cannabis plant. Of course, this plant is illegal in many parts of the world due to its intoxicating effects, but CBD products are typically legal to sell, purchase, and use, especially within the United States. See, CBD is just one of many compounds that is found in cannabis and hemp and does not have any intoxicating or dangerous properties. Instead, the intoxicating component of the cannabis plant is THC, and this is the main chemical that leaves people who smoke or eat the substance feeling ‘high’. For CBD products to be legal, they need to contain no more than 0.3% THC, and there are many testing bodies that enforce this and make sure that the CBD on the market is safe. If you’re looking to start a CBD business, you need to be aware of this and work hard to ensure that the products you’re selling are legal and are free from THC.
Why is CBD a Lucrative Industry?
If CBD is already so prevalent and can be found at so many health stores, why is starting a CBD business a good idea? To put it simply, the quality of the CBD products available over the counter at most health stores is not that great. On top of this, these stores often charge an extortionate amount for these products. Many consumers who haven’t done their research will pay high prices for a CBD oil or spray at these stores without realizing that the CBD content is so low as to be almost unnoticeable—a pretty expensive placebo!
Many customers have noticed this, and therefore the demand for higher-quality CBD from specialized stores is high and seems unlikely to decrease.
How to Stock CBD
Although CBD is a lucrative industry, there is still competition in the market. If you want to start a successful CBD business, you will need to source high-quality products; though some CBD businesses produce their own products, this is not an essential step. Producing your own CBD requires you to obtain a license to legally grow cannabis plants, which can range from inconvenient to almost impossible depending on where you live.
An alternative to this is to stock products from other suppliers. You may even consider using the drop-shipping model, which enables you to sell and trade products without having to hold them in stock at all physically!
However, the drop-shipping model only works if you want to run a purely online store. There are also advantages to opening a traditional physical store that stocks CBD products, particularly if there isn’t already one in the area. If you are interested in opening a physical store, comparing business utility costs on sites like utilitybidder.co.uk can help you to reduce your expenses.
Whether you are running a purely online store or a physical store, it is important to stock various products to widen your customer base. Different forms of CBD, from oils to capsules to gummies to vape liquid, are all worth stocking, as well as different strains (e.g., Sativa, Indica, or hybrid).
How to Market Your CBD Business
Marketing is one of the most important factors in business success, regardless of the industry. Digital marketing (e.g., pay-per-click ads, social media pages, and posts, and email mailing lists) is the most effective, convenient, and inexpensive form of marketing these days. When it comes to CBD, sending free samples in exchange for positive reviews from health bloggers and influencers can go a long way.