CBD drop shipping, or "dropshipping," is a business model. It makes it easy for retailers to sell CBD products online without housing tons of inventory at your store or home. CBD drop shipping, or "dropshipping," is a business model. It makes it easy for retailers to sell CBD products online without housing tons of inventory at their stores or home. Of course, one of the key things that you will need to do to set up your business is to find a CBD supplier like Laurelcrest. But what else is involved?
Want to learn more about CBD dropshipping and how to boost the sales of your business?
Read on below for five easy ways to facilitate CBD dropshipping.
Entering the CBD Market: Why It's a Smart Business Move
Successful business owners know that they should go where the market goes. If you're interested in starting your own business, an excellent first step is to check where consumers are currently spending their money, and what direction the trends are going.
One clear trend we see now? CBD.
CBD has quickly become an explosive industry over the past few years. Where there was once trepidation about entering into a market for a product with mixed reviews, there is now a powerhouse industry. The product line has benefits for people wanting to use hemp-derived products.
When the FDA legalized hemp-derived CBD with the 2018 Farm Bill, the industry transformed overnight. Nowadays, the CBD market is full of competitive players who are confident in the benefits and profitability of this product.
If you're serious about entering this business, you'll need to consider how you'll run your online CBD business to stay competitive. Here, we'll discuss drop shipping, which has ranked as one of the best approaches in 3 Ways to Start an Online CBD Business.
What Is Dropshipping?
Dropshipping is a method of retail fulfillment in which a store doesn't hold inventory of their products. Instead, they mediate between the supplier and the customer. They facilitate the shipping and selection process to get the product shipped directly from the CBD manufacturer to the consumer.
The main difference between standard retail models and the dropshipping model is that the merchant does not have inventory or stock at hand. Instead, they rely on a third party to fulfill the actual orders. The merchant takes more of a marketing and sales position, while the third-party manufacturer and shipper is the producer.
5 Steps to Starting Your CBD Dropshipping Online
Do you want to get started dropshipping CBD online? You have to consider all factors, from the legal side to the shipping and marketing. Follow these five simple steps to get selling online:
Step 1: Obtain Licenses
In the US, dropshipping comes along with its own set of rules and regulations. You'll first want to get a proper business license and follow up on any local licenses, such as a county or city license.
As long as you follow these carefully, you'll be good to go. Additionally, watch out for the following regulations:
FedEx, UPS, DHL
FedEx, DHL, and UPS have rules for online sellers in the cannabidiol industry who want to ship their products. These regulations state that the product must be hemp-derived and contain less than the standard 0.3% THC per federal laws.
USPS
In March of 2019, USPS released new guidelines for sending hemp-derived CBD products through their mail service. The new rules require a signed certification statement for each shipment. This statement serves as documentation that you have legal authorization to ship your products.
Additional Company Requirements
Along with the requirements and red tape that shipping carriers put in place, there also may be rules from the companies involved in your sales process.
For example, the Canadian-based platform Shopify launched a new selling platform designed to specifically help US CBD merchants sell their products online or in-store as permitted.
PayPal also sets some red tape that CBD merchants must consider. UK residents can legally purchase CBD products like CBD edibles wholesale through PayPal, but the US still imposes restrictions on UK PayPal. By PayPal's standards, CBD is a narcotic in the UK, making it a risky purchase for vendors there.
Amazon and eBay have both banned the sale of CBD on their platforms. Payment processor Stripe has given many CBD businesses the go-ahead to access their card processing services.
Just last year, Facebook lifted its ban on certain CBD products, allowing advertisements on the platform. As of now, retailers can only advertise topical products, but it's still progress.
Step 2: Find a Supplier
As a retailer, you need a reliable and affordable supplier - that comes with finding a wholesaler. The right partnership can be lucrative for both you and the producer. Look for one of the top CBD oil distributors on the market today to source your products.
Amazon and eBay have both banned the sale of CBD on their platforms. Payment processor Stripe has given many CBD businesses the go-ahead to access their card processing services.
Just last year, Facebook lifted its ban on certain CBD products, allowing advertisements on the platform. As of now, retailers can only advertise topical products, but it's still progress.
Step 2: Find a Supplier
As a retailer, you need a reliable and affordable supplier - that comes with finding a wholesaler. The right partnership can be lucrative for both you and the producer. Look for one of the top CBD oil distributors on the market today to source your products.
There's an array of CBD products that retailers can sell via the dropshipping model. To get started with your business, you'll want to find a supplier for the types of CBD products you plan to sell. You can find suppliers for the following:
Topicals
Topicals are creams, gels, sprays, lotions, and even bath bombs. These are useful for soothing everyday aches and pains.
Users apply topical products directly on the skin. This localized application works quickly to provide support for areas on the body that need relief.
Edibles
Edibles are widely available in the market today. However, they face scrutiny from the FDA and other cannabis-focused organizations. The trouble comes when you consider that children might mistake edibles like gummies, candies, and cookies, as ordinary snacks.
There's also controversy about the manufacturing of such items. Many brands will make unsubstantiated claims. Since they aren't subject to FDA regulations, these products will go unchecked. It's crucial to be discerning and ask for third-party testing when considering CBD edibles to sell online.
Sublingual
Sublingual CBD can be tinctures or strips that a person places beneath the tongue. Putting a few drops or a small strip of CBD under the tongue lets it absorb quickly into the body through the bloodstream.
Capsules
CBD capsules can be a quick and convenient way to get your dose.
There is some argument among industry experts regarding the bioavailability of these capsules. Some say capsules are more convenient and faster-acting than sublingual methods or edibles. Others say that the body will not absorb the CBD as well this way.
Even still, capsules are popular because of their familiarity to consumers.
Step 3: Build the Website
Next, you'll want to build your eCommerce website, keeping a few things in mind. These aspects of your site will help to attract visitors and convert them into customers:
SEO
Focusing on search engine optimization (SEO) is one of the best ways to boost your CBD retail sales. SEO is an organic method to build traffic by meeting your audience where they already are: Google.
To use SEO to your advantage, pay attention to keywords, meta tags, and optimized content throughout your site. Using tools like Google Keyword Finder can help you identify what your target audience is searching for online and how you can bring them to your site.
By injecting those popular search terms into your blog posts, product pages, and more, you'll increase your chances of earning a top spot in the search results.
When the first five organic search results account for nearly 70% of all clicks on a search engine results page (SERP), it pays to invest in SEO.
Content Marketing
If you want to achieve search engine optimization successfully, you'll need to focus on content marketing. The content itself is what you'll optimize to earn your spot on the SERP.
For your content to do its job, you'll need to create a strong content marketing strategy. Since advertising for CBD products is extremely limited in the US, you'll need to rely on content to do most of the heavy lifting.
For starters, create a content plan that incorporates educational information about CBD. Create pages that address who can benefit from using it, how it works, and why they might want to use it. Be sure that anything you're saying doesn't overstep your legal limits.
Organize this information throughout your site – in your blog posts, on your product pages, and perhaps in an FAQ section.
Step 4: Market Yourself
Since regulations exist on how you can advertise and market your CBD products, you'll want to carefully promote your CBD dropshipping business. Luckily, there are still many easy ways you can legally facilitate CBD drop shipping by marketing yourself.
Create Affiliates
Affiliate marketing uses a team of affiliates to do most of the marketing and spread awareness about your product and business. Affiliate programs work by offering all affiliated members a portion of the sales that they generate. The more they sell, the more they earn for you and themselves.
Using affiliates can take some of the weight of marketing off of you so that you can focus on the more technical aspects of your dropshipping business. They'll handle social media awareness and network growth. That way, you can worry about getting items fulfilled and transported from the manufacturer to your customer.
Get Influenced
In a world heavily reliant on social media, influencer marketing has risen to the top. Social media users are more likely to buy something that they see used by someone they relate to or recommended by someone they trust.
A great way to facilitate your CBD dropshipping business is by including influencer marketing strategy into your overall marketing plan. Partnering with suitable influencers, you can get your product in front of the right kind of audience without being too pushy or sales-y. Just ensure you're complying with FTC guidelines about disclosing paid advertisements.
Turn to Email
When in doubt, email marketing is still a reliable and effective way to reach a list of interested subscribers that could potentially turn into customers. Email is a safer and more productive path of advertising for CBD. It lets you skirt the many regulations on traditional and social advertising.
A great way to activate your email list is to offer sign-up rewards, exclusive coupons, and discounts. You may see that this kind of marketing aids in customer retention as well.
Step 5: Fulfill the Orders
Finally, you'll fulfill the orders for all of your customers. This part is the easiest for a drop shipper since you don't have to pack and ship the products personally.
Topicals
Topicals are creams, gels, sprays, lotions, and even bath bombs. These are useful for soothing everyday aches and pains.
Users apply topical products directly on the skin. This localized application works quickly to provide support for areas on the body that need relief.
Edibles
Edibles are widely available in the market today. However, they face scrutiny from the FDA and other cannabis-focused organizations. The trouble comes when you consider that children might mistake edibles like gummies, candies, and cookies, as ordinary snacks.
There's also controversy about the manufacturing of such items. Many brands will make unsubstantiated claims. Since they aren't subject to FDA regulations, these products will go unchecked. It's crucial to be discerning and ask for third-party testing when considering CBD edibles to sell online.
Sublingual
Sublingual CBD can be tinctures or strips that a person places beneath the tongue. Putting a few drops or a small strip of CBD under the tongue lets it absorb quickly into the body through the bloodstream.
Capsules
CBD capsules can be a quick and convenient way to get your dose.
There is some argument among industry experts regarding the bioavailability of these capsules. Some say capsules are more convenient and faster-acting than sublingual methods or edibles. Others say that the body will not absorb the CBD as well this way.
Even still, capsules are popular because of their familiarity to consumers.
Step 3: Build the Website
Next, you'll want to build your eCommerce website, keeping a few things in mind. These aspects of your site will help to attract visitors and convert them into customers:
SEO
Focusing on search engine optimization (SEO) is one of the best ways to boost your CBD retail sales. SEO is an organic method to build traffic by meeting your audience where they already are: Google.
To use SEO to your advantage, pay attention to keywords, meta tags, and optimized content throughout your site. Using tools like Google Keyword Finder can help you identify what your target audience is searching for online and how you can bring them to your site.
By injecting those popular search terms into your blog posts, product pages, and more, you'll increase your chances of earning a top spot in the search results.
When the first five organic search results account for nearly 70% of all clicks on a search engine results page (SERP), it pays to invest in SEO.
Content Marketing
If you want to achieve search engine optimization successfully, you'll need to focus on content marketing. The content itself is what you'll optimize to earn your spot on the SERP.
For your content to do its job, you'll need to create a strong content marketing strategy. Since advertising for CBD products is extremely limited in the US, you'll need to rely on content to do most of the heavy lifting.
For starters, create a content plan that incorporates educational information about CBD. Create pages that address who can benefit from using it, how it works, and why they might want to use it. Be sure that anything you're saying doesn't overstep your legal limits.
Organize this information throughout your site – in your blog posts, on your product pages, and perhaps in an FAQ section.
Step 4: Market Yourself
Since regulations exist on how you can advertise and market your CBD products, you'll want to carefully promote your CBD dropshipping business. Luckily, there are still many easy ways you can legally facilitate CBD drop shipping by marketing yourself.
Create Affiliates
Affiliate marketing uses a team of affiliates to do most of the marketing and spread awareness about your product and business. Affiliate programs work by offering all affiliated members a portion of the sales that they generate. The more they sell, the more they earn for you and themselves.
Using affiliates can take some of the weight of marketing off of you so that you can focus on the more technical aspects of your dropshipping business. They'll handle social media awareness and network growth. That way, you can worry about getting items fulfilled and transported from the manufacturer to your customer.
Get Influenced
In a world heavily reliant on social media, influencer marketing has risen to the top. Social media users are more likely to buy something that they see used by someone they relate to or recommended by someone they trust.
A great way to facilitate your CBD dropshipping business is by including influencer marketing strategy into your overall marketing plan. Partnering with suitable influencers, you can get your product in front of the right kind of audience without being too pushy or sales-y. Just ensure you're complying with FTC guidelines about disclosing paid advertisements.
Turn to Email
When in doubt, email marketing is still a reliable and effective way to reach a list of interested subscribers that could potentially turn into customers. Email is a safer and more productive path of advertising for CBD. It lets you skirt the many regulations on traditional and social advertising.
A great way to activate your email list is to offer sign-up rewards, exclusive coupons, and discounts. You may see that this kind of marketing aids in customer retention as well.
Step 5: Fulfill the Orders
Finally, you'll fulfill the orders for all of your customers. This part is the easiest for a drop shipper since you don't have to pack and ship the products personally.
Instead, you'll collect all of the order information. From there, you can pass it along to the manufacturer, who will then pack the orders and ship them directly to the customer's door.
Dropshipping makes CBD sales online so much easier. If you've wanted to get in the ring for a while but were nervous, now's your chance. Take the pressure of order fulfillment off of you, and leave it to the people who do it best.
Conclusion
CBD has taken the US by storm, with about 64 million Americans admitting to using it at least once over the past two years. As CBD becomes more socially acceptable, we will only see this trend continuing.
Now is a great time to get into the CBD dropshipping industry. While there may be some extra red tape around advertising and marketing, you can facilitate your business using methods that are legal, safe, and lucrative.
Dropshipping makes CBD sales online so much easier. If you've wanted to get in the ring for a while but were nervous, now's your chance. Take the pressure of order fulfillment off of you, and leave it to the people who do it best.
Conclusion
CBD has taken the US by storm, with about 64 million Americans admitting to using it at least once over the past two years. As CBD becomes more socially acceptable, we will only see this trend continuing.
Now is a great time to get into the CBD dropshipping industry. While there may be some extra red tape around advertising and marketing, you can facilitate your business using methods that are legal, safe, and lucrative.
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