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cbd oil business opportunities

Cbd oil business opportunities

In the last few years, CBD oil has grown from a niche alternative treatment to a multimillion-dollar market. The growth rate suggests that by 2022 the CBD market will expand to over $2.5 billion. As more people discover the benefits of CBD, the medical community and legislators alike are taking notice. CBD is used on a daily basis by millions of people, and because of the credibility given to it by doctors, researchers, and lawmakers who support it, more people are trying CBD for the first time every day.

Whether you use CBD yourself or you’re just interested in the industry, now is a fantastic time to enter the market and open your own online CBD store. Shift4Shop has everything you need to handle this unique industry and tap into the huge opportunities offered by the CBD market. You’ll have access to the most powerful eCommerce tools available for starting your store, reaching your customers, and getting the brand recognition that leads to a successful business.

Sell CBD Online

Understanding CBD and CBD Products

There is a lot of confusion around CBD products due to its relationship with marijuana, so let’s go over the facts. CBD is short for cannabidiol, a compound found in all cannabis plants. What makes CBD oils different is that they do not contain THC (tetrahydrocannabinol) which is the compound responsible for the “high” associated with marijuana. CBD itself is completely non-psychoactive, meaning it does not affect the brain like THC does. Instead, CBD provides several positive health effects that have been thoroughly documented, although the FDA has not yet evaluated these claims.

Misunderstandings about CBD have led to legal problems for various companies in some states, but fortunately the difficult times have passed as CBD is now understood and valued throughout the US. Today, it is legal to sell CBD nationwide as long as it remains within the minimum THC limit of 0.3%, which is a negligible amount that does not affect the brain. If you want to sell CBD online, you can start your business without issues as long as you follow a few simple rules (like getting any required licensing and not making direct medical claims on your website).

People take CBD for a variety of reasons including severe or painful conditions and anxiety relief. Everyone who uses CBD also has their own preferred method of taking it, which can be anything from vaping it to swallowing a pill. As a CBD seller, it’s important for you to understand the types of CBD products available and how they are used, as well as which types of customers the different products appeal to.

how to sell CBD

CBD Tinctures

A tincture is a concentrated extract made by soaking herbs in very strong alcohol for long periods of time, or in the case of CBD tinctures, by combining natural hemp oil with alcohol or another solvent. Tinctures are administered by placing a few drops of the liquid under the tongue. Only a small amount is needed for a dose because they are so highly concentrated. This method of administering CBD appeals to people who want the fastest way to take CBD and feel its effects quickly.

CBD Edibles

Edibles are all types of food containing CBD, and can include gummies or chews, hard candies, chocolate, cookies, and even beverages. Edibles are popular among customers who like to take their CBD in the form of a tasty treat. Since edibles are food products, they’re subject to additional regulations that vary by state. These include food safety regulations as well as packaging requirements like childproof containers.

CBD Isolates

An isolate is a pure substance that has been extracted from its source and refined into a powder. CBD isolate has been processed to remove all the other natural plant substances such as chlorophyll and wax and leave only pure CBD behind. Isolates are colorless and flavorless and can be used in a similar way to tinctures, or can be added as an ingredient to infuse CBD into a variety of foods and beverages. Isolates are popular with customers who like to mix their own CBD products at home.

CBD Capsules

CBD capsules are just like any other gelatin capsule or softgel: a fast, convenient way to administer a dose of its ingredients. Capsules are quicker to use than tinctures and isolates, and are often favored by customers who want to avoid edibles or just want to take CBD in a familiar way. Many people are used to taking multivitamins or medications in capsule form, so capsules are often a natural starting point for customers new to CBD.

CBD Vaporizers and Vape Concentrates

Inhalation is a popular method for CBD delivery because, much like with tinctures, the CBD is absorbed directly into the bloodstream and so provides immediate effects. CBD concentrates can be vaped similarly to nicotine e-liquids, so vape supply stores often expand into CBD or vice versa (learn more about selling vape online). Traditional smoking methods like water pipes are also popular, but some CBD retailers find these products troublesome due to drug paraphernalia laws (regardless of their use with legal CBD) and the difficulty of shipping complicated glass items.

CBD Topical Formulations

A CBD topical formulation is a cream, salve, lotion, gel, or other preparation made to be rubbed into the skin. These products can be applied directly to inflamed or painful areas similar to other pain relief ointments. They also provide an alternative for customers who don’t like to take CBD orally. These treatments can also include other ingredients like menthol to provide a cooling sensation. CBD can also be used in massage oils.

CBD Patches

Patches are another method for absorbing CBD through the skin. Similar to nicotine patches and various types of pain relief patches, CBD patches gradually release their ingredients into the body over the course of the day. Customers prefer CBD patches when they need to maintain a low, consistent dosage throughout many hours, or just for the convenience of patches over other methods. Patches are also useful when a person won’t have access to other CBD products during the day or won’t have a chance to take them.

CBD for Pets

CBD has been shown to have similar effects on animals as it has on humans, so it’s popular with people who have pets that suffer from pain or anxiety — even if the customer doesn’t use any CBD themselves. Since animals can have much more sensitive systems than humans, CBD oils for pets should be specially formulated to ensure their safety. CBD for pets can also come in flavors like fish and bacon to make it more appealing to cats and dogs.

Summary of CBD Products and Accessories You Can Sell:

  • CBD tinctures
  • CBD vaporizers and concentrates
  • CBD edibles
  • CBD topical formulations
  • CBD isolates
  • CBD patches
  • CBD capsules
  • CBD for pets

This list is a summary of hundreds of individual products which can all be sold quite successfully through an online CBD store. Customers will also need to restock their CBD products, including their preferred concentrates and delivery methods which could include numerous types of vaping accessories. If you build your CBD eCommerce website with advanced software like Shift4Shop, you can make the reordering process much easier for your customers by implementing a subscription service for needed products. You can also offer product bundles, like edible variety packs, CBD vape starter sets, and more.

CBD Products You can sell online

How to Choose a CBD Supplier

Choosing a CBD supplier is a very important decision that will affect the quality of your products, the satisfaction of your customers, and the reputation of your brand. Because of the famous health benefits of CBD, “fake” CBD oils are found in stores everywhere. These oils are considered not to be true CBD because they’re derived from hemp seeds, which contain very little CBD, rather than from the stalks and leaves of the plant where the most CBD is found. It’s crucial for your business that you choose a manufacturer that makes genuine CBD that will have the health effects your customers want — this way, you can immediately differentiate your business from the brands that provide no benefit and only seek to cash in on a trend.

When evaluating a CBD supplier, find out as much as you can about their manufacturing process. Remember that you want to sell CBD oil products derived from industrial hemp with a THC content of less than 0.3%, processed from the plant itself and not the seeds. Here are some other considerations to keep in mind when looking at suppliers.

How to Choose a CBD Supplier

Medical Claims

CBD retailers are not allowed to make medical claims on their websites, and neither are suppliers. Even though research has shown many potential benefits and most people who use CBD report positive effects from it, the FDA hasn’t yet evaluated these statements. CBD suppliers, including both wholesalers and consumer-level retailers, are required to display the FDA’s disclaimer on their website. If you’re looking at a supplier who makes medical claims about their CBD products, be aware that these statements have no FDA backing. Don’t choose a supplier based on medical claims — and if the supplier has particularly bold claims on their website (e.g. “cures cancer,”) you may wish to avoid that supplier entirely, as breaking this rule means the supplier may be breaking others as well.


As a business owner, you should always look for ways to lower your costs as long as you don’t compromise on the quality of your merchandise. CBD suppliers’ pricing can vary greatly, and sometimes this is reflected in the quality of the product. For example, higher-priced CBD products are often more pure and potent — but this isn’t always the case. Make sure you learn as much as possible about the supplier so you can learn whether the quality of their products justifies the pricing. Likewise, stay away from suppliers who sell at abnormally cheap prices. These rock-bottom prices are almost always a sign of cutting corners and producing an inferior product.

Hemp Sourcing

Europe and the United States both have long histories of hemp farming due to the quality of products made from hemp, such as rope and textiles, even before CBD was understood. Today, the US and Europe are home to some of the best hemp farmers in the world, although not all European countries that grow hemp do so for CBD extraction. Other countries throughout the world also grow hemp for various uses that may not permit usage for CBD. Hemp farming was also banned in the US for over 50 years and is still illegal in some states. It is important that your CBD supplier obtains hemp from a reputable farm that produces high-quality crops such as those found in the US and Europe. If your supplier grows their own hemp, investigate to ensure they’re following industry best practices.

Extraction Method and CoA

There are a variety of processes that are used to extract CBD from industrial hemp, and the process used has an effect on the quality of the product. The best of these processes is CO2 extraction because it results in CBD oils that are free of contaminants, unlike other methods that can leave chemicals behind in the oil. Choose a manufacturer that uses CO2 extraction if at all possible. You should also be able to access a CoA (certificate of analysis) from the supplier that lists the exact levels of CBD, THC, and any other substances in the product. Different suppliers’ CoAs might look different, but always check for results from pesticide testing, microbiological testing (for mold and bacteria), and residual solvents testing (to identify any remaining chemicals from the extraction process). If the CoA isn’t posted on the supplier’s website, always request a copy before purchasing inventory.

Extra Services

Some CBD suppliers offer additional services like dropshipping and private labeling. While the quality of the product should come first, it’s also very helpful to know if a supplier can provide these services. If you’re planning on dropshipping your CBD products, this option is crucial to your business model. In addition, private labeling allows you to sell fully branded products with your own business name and logo, which helps you become established in the industry and start earning the trust of your customers.

High-Quality CBD Wholesalers

Whether you plan to stock inventory or sell by dropshipping, the quality of your supply chain makes all the difference. It’s also vital to choose a supplier that’s right for your business and can get your products to you in a timely fashion. Since the CBD industry is growing, it’s becoming easier to find good suppliers that will work well with you.

Looking to start an online CBD store? Our website builder can help you start your online CBD business and start selling CBD products online

How to Start a CBD Oil Business

While CBD oil is still relatively new to the mainstream, it is already becoming a household name, thanks to its health benefits.

A recent market research by BDS Analytics and ArcView projects that the United States’ CBD sales will surpass $20 billion by 2024. On another report, the annual growth rate of hemp-derived CBD products is forecasted at 55%.

Considering such CBD market analytics, aspiring entrepreneurs have an ample chance for making some green in the industry.

It’s also especially important to use a trustworthy provider like that carries the top CBD brands to ensure repeat business.

But how do you go about setting up a CBD business? This piece has everything you need to know, including information about legal compliance, challenges within the industry, and the average return on investment.

What is CBD?

Cannabidiol (CBD) is one ofthe over one hundred compounds (cannabinoids) found in the best hemp oil and cannabis plants. Unlike the famous cannabinoid known as tetrahydrocannabinol (THC), CBD does not have psychoactive effects. Instead, it is touted for its exceptional therapeutic and health benefits that have been proven through research.

CBD products are created through several steps. This starts with the cultivation and harvesting of the raw materials (hemp or cannabis). From there, CBD oil is extracted using an array of methods, including supercritical CBD extraction, steam distillation, or solvent extraction.

After extraction, CBD oil is sold as a concentrate or used to infuse a range of products. Some of the most prevalent CBD products in the market today are sublingual CBD oil tinctures, topicals, infused edibles, gels, creams, vapes, and pet treats.

Hemp CBD

Although CBD oil can be extracted from either hemp or cannabis, there is a crucial difference between oil extracted from the two plants: THC.

While CBD oil derived from cannabis is illegal at the federal level, hemp-derived CBD is legal. Industrial hemp contains less than 0.3 % THC and is considered legal to cultivate, harvest, and process under the federal law. On the other hand, cannabis contains over 0.3% THC and at times higher levels, which makes it illegal.

Cannabis and hemp are closely related. Actually, industrial hemp is Cannabis sativa L. The name difference is mostly a legal definition function that sets the THC content threshold. Hemp flowerscontain no THC, unlike those of cannabis. You can check this hemp oil vs CBD oil comparison guide for other details you must know and should understand.

How to Start a CBD Oil Business

As is the case with any other investment, starting a cannabis business will require much hard work and effort on your part. However, you will pay a higher price complying with the legal aspects of the business and need to brace yourself for the uncertainty of the industry’s shifting regulatory landscape.

Below are the steps you need to follow when starting a CBD oil business.

  1. Identify Your Niche

The hemp industry is broad and has tons of business opportunities. Determining your areas of interest would go a long way towards planning, legal compliance, and business execution.

One of the most rewarding fields in the industry is cultivation, which, according to a report by the University of Kentucky’s Department of Agricultural Economics, generates an average profit of $604 per acre. The Hemp Business Journal reports that when planted for CBD extraction, farmers can get more than $2,500 hemp farming profit per acre.

Other rewarding CBD oil business opportunities include:

  • Hemp extraction
  • Processing
  • Online and physical store retailing
  • Delivery
  • Marketing and consultancy
  • Opening a hemp seed bank
  • CBD events planning
  • Hemp business funding
  • Industry employment bureau
  • And more!
  1. Legal Considerations

The success of your business will, to a large extent, depend on how familiar you are with hemp laws.The most crucial law to understand is that the federal government deems CBD products legal only when they are produced from hemp with no more than 0.3% THC.

The other issue is marketing.

Although CBD has plenty of health benefits, you will need FDA approval on your products for you to claim that they can prevent, treat, cure, or diagnose a disease. Only one CBD drug (Epidiolex) is FDA approved and making such claims on your products could lead you to trouble with the FDA.

Read all federal and state regulations before starting up a CBD business. Afterthis, you can get incorporation and business licenses, as well as employer and tax identification numbers.

To maneuver through this process more easily and have your contracts well drafted, it would be best to hire an attorney, especially if you are putting in a substantial amount of investment capital.

  1. Create a Business Execution Plan

Before investing or as you wait for license approval, come up with a comprehensive business plan to guide you throughout all your operations. Key factors to include are:

  • The products and services you will be selling.Thesecould include health and wellness, personal care, beauty, or pet care products.
  • Financing methods: Identify how much you need and make a plan on ways to raise resources for financing your startup.
  • Marketing plan: Come up with ideal marketing strategies to drive awareness and sales of your new product or service.
  • Sales forecasts: Review your expectations and research to come up with a realistic sales benchmark and a plan on what you will need to do to stay on track and meet this goal.
  1. Find the Right Supplier

If you are interested in processing, distributing, or reselling CBD oil, you will need to have someone to supply you with the raw materials or finished products. The same applies to cultivation and extraction, among other fields. Reputable hemp is available from Europe and America.

Factors to consider when looking for a hemp supplier include current good manufacturing practice and a Certificate of Analysis.

Make sure that you create your own brand, and sell from your own company. Build trust and credibility with your clients and work as hard as you can to get return business. This can be difficult as even trusted brands have a hard time in this niche, for example, CBD on amazon is fake.

  1. Build Your Brand, Market and Sell

Before and after you get everything ready, focus on creating a pool of customers you can rely on. This will require you to run aggressive marketing campaigns, optimize your website, and create a strong media presence.

Since most platforms do not allow CBD advertising, you will need to be creative to get results. Marketing CBD products through customer loyalty programs and organic search strategy is more engaging and safer than paid advertising.

Challenges Facing the CBD Business

Anyone looking to start a CBD business should familiarize themselves with the following challenges that are rampant in the industry:

  1. Banking

With hemp’s fluctuating regulatory landscape, accessing reliable banking services when running a CBD oil business can be complicated. Most banks are hesitant to accommodate cannabis and CBD companies as they fear a huge risk of burdensome oversight.

  1. Insurance

CBD oil entrepreneurs find it challenging to find affordable insurance. Despite the legalization of hemp, insurance prices remain heightened for such investors.

  1. Payment Processing

Many payment processors present unreasonably high charges and other challenges to CBD oil businesses. Some like Visa have cut off CBD businesses, leaving entrepreneurs with limited options like Discover and MasterCard.

  1. Capital Access

Lenders, including banks, are reluctant to finance CBD companies as they view the industry as too risky due to the lack of clear regulatory requirements.

Final Verdict

If you approach it correctly, CBD oil is a big business opportunity. All that you need to do to set up your business for success in the industry is combine creativity and due diligence.

How to Start a CBD Oil Business While CBD oil is still relatively new to the mainstream, it is already becoming a household name, thanks to its health benefits. A recent market research by BDS