Start Selling CBD Online

Advantages of selling CBD online

Despite all the regulatory tussles, you can still manage to gain a whole lot of benefits by running your CBD shop online. Firstly, having an eCommerce website will give you the more than adequate push to drive your brand forward. For this, continue to read ahead and discover how to sell CBD online?

Aside from this, let’s explore the other merits of establishing your brand on the web:

• SEO your Brand – People are actively searching for CBD products. Which is why you must start interacting with those relevant searches and find a way to educate your qualified audience.
  
  Publish relevant content for your potential customers. Use the power of SEO and rank higher for popular search terms on Google and Bing; which’ll help you to generate qualified leads. This helps to Boost Growth, increase sales, generate awareness and build trust, drive traffic to your site.
  
  Most effective way to gain customers and bypass competition. Use Google Keyword planner and map high-volume words to derive your site content. Optimize your CBD eCommerce to this and enhance your CTR, conversions and lower bounce rates. Track along the KPI’s and better your visibility.
  
  
• Email Marketing – Strategic emails dispatched from time to time will yield the best results. A marketing tactic used by most players in the CBD industry to lure prospects. Advertise all your inventory in one shot. People visit their inbox daily, which is why this reach is even more competent.
  
  A good way to keep your customers informed and interested in your SKU’s via newsletters. An email campaign also helps you hand out personalized recommendations/offers; customized to their shopping habits. As per Statista, 49% of consumers would love promotional emails from their favorite brands.
  
  New products, deals, product reviews, rewards, seasonal offer announcements can all be made through mails to drive CBD curious customers to your website. Besides, the fact that around 60% of emails are opened on mobile devices, which helps to connect with your audience on the go.
  
  
• Affiliate Marketing – Word of mouth from a reliable source works wonders for any brand, and the same goes with CBD as well. Use influencers where possible to drive your brand name forward. This helps to up the engagement as well from outside users, who were otherwise unfamiliar with your brand. 
  
  Get others to promote the brand for you and turn it into an affiliate program. Run incentives for every lead acquired by them, which can then be redeemed on your store. They talk and create a buzz around your brand. In the long run, it helps to reduce the spend on marketing. 
  
  Create awareness and gain the edge in this competitive market; besides, helping to create a long-term sales funnel. The trust factor with your influencer means they are likely to jump the bandwagon and lap up your ideas and products - a new-age way to penetrate new territories and gain buyers.

• Customer Service – Being online means you’ll be able to address customer grievances with ease and speed. Issues and queries are natural when the CBD business is still in its nascent stages. As such, it is vital that you place someone (even an AI bot) to engage and respond to issues.

Picking the right platform and the right people is vital when starting your CBD ecommerce store.Don’t Wait!!! Contact NOW!

• Instagram – Most CBD brands look to place themselves on Instagram to further their brand value. Realizing that a good number of customers are here, means you can take advantage of the same and connect with them. Establish some social media presence and gather all the leads you want.

• Testimonials – A major advantage of running a CBD eCommerce store is it lets your customers leave valuable reviews, which will then serve as a reference point for the next buyer. Showcase this positive feedback to help future customers to get over any indecisive moments.

• Automation – Instead of manually processing back-end tasks, shift all the heavy load to software’s that will simplify your work. Use CRM/ERP/CPQ and other applications to ease the workload. A move that helps to streamline all the manual work

In the IoT age don’t rely on legacy systems, pick up advanced tools to streamline all the processes. Even use cloud-based eCommerce systems to help speed-up fulfillment and give your customers accurate and timely information about their orders.

What are the Key Challenges?

Due to the complicated legalities and unequal state regulations inherent with CBD related products, all products sold online are considered high-risk.

The CBD industry has its unique regulatory procedures, which make it difficult to hit the ground running. Without clearing these legal hurdles, companies cannot possibly succeed in this market. The FDA details specific guidelines/rules; which will serve as the base for many such aspiring companies.

For the time being, you’ll need to know about some struggles before undertaking a CBD mission:

• Payment – Your regular payment processors (PayPal, Stripe, Square) won’t run in this sector. They are not willing to risk it with such a complicated business. As such, you end up with limited payment gateways. Zodaka/PayKings/goEmerchant are allowing such CBD transactions.
  
  Users sign-up by connecting their bank accounts to their system, then the payment goes from the user’s to the merchant’s bank account. A streamlined transfer process like no other. In the absence of a regular payment brand for this high-risk sector; there are still quite a few options for collecting money.
  
  Charging a fair rate for their services, with no chargebacks and maintaining a highly secure encryption channel. Grow your business, ease your payment methods, protect your store & sustain your revenue stream with these reliable substitutes. Losing payment means losing business.
  
  However, there are certain payment processors that charge a hefty cut of the transaction, due to which startups are hit bad. The bigger brands can still manage somehow. Choose wisely!!!

• Platforms - Not all platforms will let you trade in Cannabis derivatives. Big brands like Wix, SquareSpace, BigCommerce are preventing many store owners who use their service to sell any CBD related products. Your Store will be Shutdown. Plain and simple. No second chances.
  
  Thus, you need to do a proper analysis; before arriving at a suitable platform/hosting company and setting up your first CBD online store. An open-source WooCommerce, being a little lenient on their CBD laws, means so you can opt for them. With the freedom to host wherever you want.
  
  Once deemed high risk by the banks; the payment gateways will become unsupportive, and Shopify will close your shop. The federal risk factor makes it easier for most mainstream platforms to bring down your store. They will not burn their reputation for some “plant based medicinal product” venture.
  
  Which means you’ll have to select the one; that streamlines your business activities, offers the lowest processing fees. Brings dependable shipping/payment options, SEO functions, tech support & does not run the risk of closing your business in the future. Do a thorough analysis before committing.

• Advertisement Limitation - Due to the legality constraints, you cannot sell CBD through traditional means. Google Ads will not allow any CBD content and so wont Facebook. Most likely it will be taken down as soon as the campaign goes live. In such a scenario you won't see any PPC ads.
  
  Such limitations mean, your company cannot gain any visitors from these sources. A major drawback of this industry is how it restricts your SEO work to more of less your own website. Facebook prohibits any CBD centric product, which will cut your social media side as well.
  
  A large chunk of your consumer base that resides on these social portals won’t be able to access your inventory. Leading to you looking for other ways to market your products.

• Shipping Challenges - The growing uncertainty in the CBD industry is causing many providers to look the other way. The complex nature of the CBD laws and due to not gaining a widespread acceptance, many Logistics brands are shying away from accepting this item.
  
  Being Farm Bill compliant is the first criteria for you. Besides, other requirements include; holding a valid license from the Department of Agriculture, following specific shipping rules & having a Certificate of Analysis to prove the extent of THC (<0.3%) in your product. No one wants a trafficking offence.
  
  DHL and FedEx currently have this on their banned substance list, but Eurosender, USPS and UPS don’t have any objections so far. Getting caught up in “Misuse of Drugs” is the last thing any brand wants. Making Shipping a problem to navigate for anyone looking to get into the CBD sector. Most 3rd Party Logistics are too distrustful of the CBD business.

• Other challenges – Banking is another concern, as most of them are hesitant to do business fearing risks and defaults. The fluctuating landscape keeps them off. Then the Insurance companies don't want a piece of this and are likely to quote higher rates and refuse affordable prices. Investment and finding Capital is a major hurdle for all CBD brands. Most CBD businesses risk abrupt closures.
  
  Banks & insurance companies are aloof of the ongoing changes in the CBD sector. Due to which they are more than willing to cut ties with CBD companies. As such, these CBD companies may end up losing essential professional services.
  
  A new bill, the SAFE Banking Act could provide federal security for institutions that serve authorized CBD businesses and improve their access to financial services. If this becomes law, it could revolutionize the CBD industry.

FAQ

Disclaimer: The statements made regarding these products have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research. These products are not intended to diagnose, treat, cure or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from health care practitioners. Please consult your health care professional about potential interactions or other possible complications before using any product. The Federal Food, Drug and Cosmetic Act requires this notice.