The decision to start your own online business can be rewarding, on a personal level as well as for your financial status. However, the process of starting a new business is easier said than done as you are bound to encounter several obstacles in your way. Things get even more complicated though when you decide to delve into the online CBD business. It can be challenging as the perception people have about CBD itself is an issue, not to even mention the legal complexities surrounding CBD.
However, if you start up on the right foot, you could have a very chance of getting yourself a good slice out of this multi-billion-dollar pie. The legalized CBD industry is expected to be worth well over $22 billion by the year 2022. That’s quite an incentive for the business-minded individuals amongst us to join the CBD industry. As such, you definitely stand to gain a lot from the booming CBD business. But, before you think of starting an online CBD business, you should be aware of a few things.
Things To Consider Before Starting an Online CBD Business
- Understand the legal status of CBD
I’m sure you know the legal complexities surrounding the sale of CBD products, which could make selling across states a risky venture. Though CBD is legal in most states in the US, the hazy nature of this law is something you have to tread with caution.
Be sure the CBD products you intend on selling online are made from industrial hemp, which is generally accepted across all states because it complies with legislation that stipulates that CBD products must have less than 0.3% THC (tetrahydrocannabinol) levels. Be conversant with existing CBD laws of each state before thinking of carrying out any interstate online transactions.
- Payment processors
When it comes to having your customers pay for the CBD products, they want to buy from you, you may experience challenges getting a payment processing platform to do it for you. This is because most of the popular payment processors like PayPal and Stripe do not accept CBD payments. This is as a result of the risks associated with CBD.
To solve this challenge, you will have to find a payment processor that specializes in CBD merchant accounts and other forms of payments that are cannabis-friendly.
- Marketing challenges
I know you are thinking that marketing your CBD products online would be a piece of cake, with the many social media channels available today. However, most of the social media giants you know like Facebook, Google, and even Amazon have restrictions placed on advertising products related to cannabis on their platforms.
In some cases, advertising CBD products flaunts the terms and conditions of making use of their platforms. So, what do you do? Focus on Search Engine Optimization (SEO). Build a good website, fill it with quality content, and build up a strong SEO ranking. When done correctly, you won’t have to worry about reaching out to clients, they’ll come to you. You can also engage in the safe terrain of email marketing, which is still a very effective way of generating sales.
Overall, starting a CBD business is very challenging, but can be rewarding if you can source the right products and market them correctly. You’ll also want to stay abreast of any rules and regulations that crop up. If you can meet these challenges though, you’ll be well on your way to making a healthy profit all while selling products that you can personally enjoy.