How to Get Started Selling CBD
Due to the recent research and personal testimonials surrounding CBD, the market for CBD oil has expanded substantially.
According to The Hemp Business Journal, the CBD market is estimated to grow to a $2.5 billion market in consumer sales by 2022.
$1.3 billion of those sales will come from hemp-based CBD sources.
If you want to be a part of a fast-growing industry and help people at the same time, try CBD!
As members of the community we provide more than just health relief.
We give back through charity fundraisers, membership in community groups, and the local Chamber of Commerce.
We proudly entwine ourselves in the lives of our neighbors and their passions.
SERVING OUR NEIGHBORS
- We make it easy for the customer
- Customer service is critical to our success
- We stand behind our products with 3rd Party quality testing
- Serve our customers
- Expand our business profitably
PLANNING FOR THE FUTURE
- We encourage leadership principles and personal growth
- We help people reach their goals
- TV, Radio, Print, Billboards
- Universities, Hospitals, Clinics, Dispensaries
Benefits of Selling CBD Online
There are many benefits of running an online business that are not exclusive to selling CBD. In comparison to a retail storefront, an online store saves money in set-up and operational costs. After an initial a start-up fee, you have access to a broad audience. Customers who may not have found your retail business have access to your store and you can target your preferred audience (more on that later).
By becoming an online CBD oil distributor, you can cater to those who prefer to purchase CBD oil from the comfort of their own home. If CBD oil is not accepted near your place of residence or if you do not think CBD oil will sell well in your area, you still have access to other customers nationwide who are seeking CBD products.
Benefits of Selling CBD in a Retail Space
In a retail space, you have direct contact with your customers. This is beneficial when selling a natural supplement such as hemp oil, as the product often prompts many questions. In a retail space, the customer can see the product in person and have access to immediate service. Your customers are likely to require your attention and will appreciate the interaction a retail space can provide.
In a retail space, you can build customer loyalty with a knowledgeable staff and quality products. A retail space is a great opportunity to introduce the community to CBD or cater to a location where CBD is not yet available. With a retail store, you can reach the audience that prefers shopping in person. CBD products also make a great addition to a store focused on natural wellness.
How to Sell CBD Online
Register Your Business. To become an online CBD oil distributor, you must find a supplier and set up an eCommerce store. First and foremost, however, you will need to register your business. Having a registered business name is professional and limits your personal and tax liabilities. This step also provides you with the opportunity to hire employees, apply for loans, and find investors. Information for state or federal business registration can be found online.
Apply for a resale license. Many wholesalers will require a resale license to proceed with a partnership. To apply for distribution with US Hemp Wholesale, we require a resale license or EIN.
Choose a website building platform. To begin the process of creating a website, you must first choose which website platform you would like to build your website on. Different platforms have different functionalities and the one you choose will be dependent on your business’ needs. Keep note: there are website platforms that do not allow the sale of CBD. You will need to do your research to find which platform will suit your business and allow the sale of CBD.
Currently, our wholesale partners are having success with several website platforms, though our top recommendation WordPress with WooCommerce.
Find a merchant processor. Securing a merchant processor allows you to charge your customers for products. Though selling CBD oil is legal in all fifty states, banks and merchant processors consider our business “high-risk” and getting approved for a merchant account will likely be difficult. We expect this to continue until the banking and financial industries are able to adjust and catch up to the new laws around CBD products.
How to Sell CBD in a Retail Store
YOUR ESTIMATED INITIAL INVESTMENT
- Real Estate/Rent and Deposit – Most landlords require First and Last months rent and a deposit before renting. This will range based on location, size, market and individual landlord. We can help negotiate TI (Tenant Allowance) and free rent during the lease negotiations. We also have realtors that can help navigate this process.
- Construction – Some spaces are “white-boxed” with no offi ces, stockrooms, or even bathrooms. This construction can sometimes be negotiated to be part of the lease with TI. However, you may have to hire a contractor to build out walls, rooms, electrical or even plumbing.
- Leasehold Improvements – This is the beautification of the space including paint, trim, flooring, lights, etc. Some of this can be negotiated in TI or done during construction.
- Furniture, Fixtures, Equipment – This will be the items in your store. Including, but not limited to, retail displays, cases, chairs, desks, tables, camera system, Point of Sale Register, cash drawer, decorations, etc.
- Signage – This is signage on the building, signs, or windows to your location. Vinyl on the windows, lighted or unlighted signage on the building or even pole or pylon signs.
- Opening Inventory – We typically recommend $7500 worth of product. A full store will look better, sell better and you will not have to say no to a customer when they ask for a specific item.
- Utility deposits, business licenses – Some utilities will require a deposit, similar to a cell phone company. Depending on personal credit, you may have to pay a fee to get electric, gas or water. Also, you will need to fi nd out what licenses you are required to have to do business in your location. You may need State, County, and/or City permits for retail and/or occupancy of a space. If you do construction, you may also need permits. You should check for retail sales, sales tax, occupancy, e-cigarette, consumable material, and employer licenses.
- Additional Funds – All businesses need money or they will suffer. Make sure you have funds to cover monthly expenses during your store setup and for a while after. We recommend you have at least 3 months’ worth of expenses available in case it takes a while for your store to become cash fl ow positive.
EXPECTED SALES REVENUE
Typically stores with proper advertising and marketing, proper location with decent customer demographics, will produce $20,000 - 30,000 in sales monthly within a 90 day from opening window.
These results are typical based on all stores that have opened. We have stores that are doing $20,000 monthly to $80,000 monthly. These include all stores currently open (2 weeks old to over 1-year-old).
We will help with marketing strategies, social media presence, SEO, Google Business pages, etc. We have models that have worked under the extreme rules that CBD companies are limited by.
We will provide online training for you as well as you can share it with your staff. These will come in the form of videos and presentations done by us and our staff. We also recommend you to join our social media groups to speak with others in our business or other stores and users of the products.
We have videos explaining products, uses, dosages, etc.
Training can also be done in person in one of our approved stores. You and your staff can shadow us and see the day to day activities and interactions with the customers. It is your responsibility to cover any and all travel expenses for this opportunity.
We are here to help you succeed. We will make sure that you get all of the info for the products that you need in order to sell properly and provide an excellent customer experience. We have created marketing materials like posters, brochures, banners, signs, and window artwork that we will make available to our Retail Partners.
We can assist with your initial business setup, make sure you have the correct licenses, help you locate and furnish a space. All you have to do is ask!
We also have built amazing relationships with our vendors including, but not limited to, Point of Sale, Credit Card Merchants, Insurance, Realtors, Radio, Digital Marketing, Sign Companies, Payroll, Lawyers and Banking.
Marketing your Online CBD Business
Currently, our distributors have found that Google does not allow paid advertising for CBD products. Even when derived from industrial hemp, CBD oil is considered a product of marijuana, which is listed under Google’s list of dangerous products or services.
In addition to content writing, social media is another method for garnering organic traffic. While you cannot use paid social advertising, you can build a strong social following to market to.
A paid form of advertising that is viable in the CBD market is display ads. Displaying ads on high-traffic sites can build your website traffic and generate new customers. Keep in mind only certain sites will allow CBD ads, so you’ll need to research this as well.
Search Engine Optimization
Again, since you cannot take advantage of many forms of paid advertising, your main marketing strategy will revolve around search engine optimization. This will have an impact on the quality and quantity of your website’s organic traffic. This is so important that we’ve mentioned it twice. Keep in mind, SEO can be challenging because it takes time to see the results. Work done today may not be recognized for six months or more. Keep at it!
In this industry, in particular, you are likely to encounter many questions. It is best to be well-prepared by educating yourself on all things surrounding CBD. While, again, you cannot make claims to prevent or diagnose disease, you can lead your customer to the right place to find the information they need.