In this article, we will look at CBD, selling online, business and more.
What Is CBD?
CBD or Cannabidiol is a small part of Cannabis. Cannabis contains various cannabinoids. Cannabidiol is one of them. According to its users and researchers, the ingredient helps with many symptoms, including pain, inflammation, anxiety and even seizures.
What helped CBD gain popularity is the fact that it doesn’t have THC, (tetrahydrocannabinol). THC is the thing in hemp that causes psychological effects: euphoria, increase in appetite, short term memory loss, paranoia and more.
Many governments around the globe fought to keep THC illegal, whereas CBD is a natural medicine without any psychological effects. So it’s more accepted and legalised.
The CBD Marketing Is Growing Increasingly Popular
The market is booming. One of the most commonly recommended things, that said about going into business, is to “Go where the market is”. It’s worth billions and the industry is predicted to be worth about 16 billion pounds by 2024. As a comparison, ice cream is worth about 1 billion pounds in 2018.
Is CBD in the UK legal?
There is a lot of confusion about the legality of CBD Oil but it is a fact that it’s 100 percent legal in the UK. It’s no longer a controlled substance and there are no restrictions on the way it’s used.
However, THC is illegal (under the Misuse of Drugs Act 1971) and any CBD product being sold in the UK, must be from hemp plants, with 0.2% trace amounts of THC content or less and under 1mg THC per dose.
Companies selling CBD in the UK, can’t make claims about medical benefits. According to the MHRA (Medicines and Healthcare Products Regulatory Agency), FSA (Food Standards Agency) and the Home Office, you are allowed to advertise CBD but as a food supplement.
In addition, CBD can’t contain any medical marijuana products or medical cannabis oil. According to the FSA’s regulations, all UK-based brands in the CBD industry should have a valid novel foods application and is authorised.
You Are Probably Wondering, How Do You Start Selling CBD Oil From Home As A Side Income?
Once you have sorted your legal allowances, you can now begin with setting up a shop. Here is a simple step by step plan, where you start refining your product, marketing and fulfilment strategies to grow your business.
- Obtain licenses- in order to sell CBD, you will need a couple of licenses. One of which is for business, normally for small businesses and also research your preference at your local government website. Registration costs about 90 pounds in most cases. Might want a resale license if you’re going to purchase products from wholesalers.
- Find a certified supplier- you will want a reputable supplier that will sell you high-quality stuff like tinctures, oils and more; and is also certified to sell. It is important to note that, they would also need to receive regular tests performed by third parties, to test the quality is assured. Many CBD companies will have their own hemp farms.
Once The Paperwork Is Finalised, What Are The Next Steps For Selling CBD Oil Whilst Working From Home?
- Create your website- Firstly, get a domain name or a web address. One popular platform is GoDaddy.com and also CBD is not approved by all payment processors like PayPal so you will need to find a company that does.
- Market your CBD products- popular methods like Facebook Ads, Youtube and others have banned these products so it’s more difficult to market. There are two good options though, SEO (Search Engine Optimisation e.g google) and a blog. Once you start getting visitors organically through SEO, you can start an email list and offer discounts. When visitors give their email in exchange for freebies, they are permitted to grow this into a trusting relationship and inform them of more promotions.
- Fulfil and ship customers orders- you will need to create a system for warehousing and managing the inventory. First, it can be at your home but once the business starts growing, you will want to switch to a fulfilment centre by either signing a warehouse lease or outsourcing. Make sure the tech syncs well with your eCommerce platform, payment processor and others.
What Are The Challenges Of Selling CBD Online?
Here are a few things to consider to help you break through the market and set your business for success.
- Standing out, think about your competitors and think which keywords are they ranking for. Can you do better? What sort of products do they provide and how can you be unique? What can you do that’s different from your competition that your customers will love? Think about the whole customer experience to see where you can be different, whether it’s selling different products, providing custom packaging or offering free 2-day shipping.
- Managing regulations- stay updated and make a list of any regulations, rules and restrictions, and create company policies around them. When selling CBD is more widely accepted, you may be able to sell internationally to other countries.
- Fulfilling orders- with no support or system it can become really difficult to fulfil your orders especially as demand picks up. When you need extra help, you need to create a solution to ensure you’re able to deliver the products to your customers in time.
Here Are The Fulfillment Options
Here are three common options, but you don’t need all this if you are an independent distributor of CTFO.
- In-house fulfilment- many CBD brands complete the orders themselves. They keep inventory at home and run to the post office or use a local warehouse. This is best when getting started.
- Dropshipping- when a manufacturer handles the shipping orders and products. All you do is the marketing and this may be fine for some products, but difficult for CBD oil as you would have less control over the quality, product selection and speed of shipment.
- Third-Party Logistics solutions- is good as you don’t have to purchase land or hire a team to pack but you need control over selecting a manufacturer. The 3PL are in the middle, helping you store your inventory and quickly get the products shipped.
So after reading all this, you’ll be ready more than ever, to start creating a CBD online business and working from home!