How to Sell CBD Online: Everything You Need to Know
In recent years, CBD products have grown into a multimillion dollar global industry. Medical professionals and health enthusiasts have been advocating for the use of CBD for years. Now, government policies are starting to catch up.
This is the right time for entrepreneurs to join and seize CBD business opportunities. Before you jump in with creating your eCommerce website, there are a few things you should know.
Though hemp and hemp-derived CBD is now federally legal in the U.S., it wasn’t until recently. This is because CBD is extracted from hemp, a classification of cannabis—a plant that’s still outlawed on a federal level. It’s important to note that hemp-derived CBD still hasn’t been legalized in several states.
The dynamic legal status of CBD products means merchants may find themselves struggling to operate. Many popular service providers, such as eCommerce platforms and payment processors, still don’t support CBD businesses.
Wix supports U.S.-based merchants (from relevant states) who want to sell hemp and hemp-derived CBD products online. Set up your CBD online store on Wix's all-in-one eComm platform. Choose a CBD template you like and customize, then connect to a provider that processes payments for CBD merchants.
Before you start selling hemp and hemp-derived CBD products from your site, you should learn what CBD is and how it can be sold online. We also recommend consulting with an attorney before selling these products on Wix.
What is CBD?
CBD, or cannabidiol, is a compound found in hemp or cannabis. Contrary to THC, CBD is a non-psychoactive material and doesn’t get you high.
When discussing CBD, the word “hemp” often comes up. So, what exactly is hemp? Hemp is a species of the cannabis plant from which CBD is extracted. Unlike cannabis, hemp has a low level of THC (the compound that causes a high). For distinction purposes, CBD products are often described as “hemp-based” or “hemp-derived”.
Another question that often comes up is the difference between full-spectrum CBD and CBD isolates.
Cannabidiol is only one of many cannabinoids found in cannabis, or hemp. These are different compounds found in the plant. Different cannabinoids have different effects and health benefits, most of which are still being studied.
CBD isolates are created by isolating the CBD compound from the rest of the cannabinoids found in the plant, meaning you get 100% pure hemp-derived CBD.
Full-spectrum CBD, on the other hand, refers to products containing the full range of cannabinoids. This type of CBD product is often regarded as healthier than CBD isolates. Some products are labeled as broad-spectrum. Like full-spectrum, these contain additional cannabinoids, except the THC is completely removed.
How to Sell CBD Online
Follow these 6 steps to start your business:
01. Select your hemp and hemp-derived CBD products
Choosing the right products to sell is the first step in opening your online CBD business.
Here are the most popular hemp-derived CBD products you can sell online:
CBD oils
CBD oils and tinctures are the most popular hemp-derived products sold on the market. CBD oil is an extract created by soaking hemp in a solvent, such as alcohol. The extract is much more concentrated and potent compared to the raw plant. CBD oils are popularly marketed as natural, organic products used for skincare, massage therapy sessions and more.
CBD candles
Hemp-derived CBD candles are another popular CBD product you could sell. Some CBD candles are infused with CBD, essential oils and fragrances and used for aromatherapy. CBD massage candles, on the other hand, are melted down to an oil and used as a skincare product.
CBD isolates
Oils and powders can also be made from isolated CBD, which does not contain additional cannabinoids like its full-range counterpart. Isolates also contain no flavor or smell, which is why they’re often used as an additive in food and beverages, allowing customers to create their own homemade hemp and hemp-derived CBD products.
CBD skin products
Topicals are another range of popular CBD-infused products. These include hemp and hemp-based creams, lotions, gels, oils and other forms of skin products. Topicals are applied directly onto the skin, which absorbs the CBD. These products may help with pain relief and can reduce inflammation.
Vape concentrates
Vaporizers are an extremely popular way to consume CBD. By inhaling, the CBD reaches the bloodstream much quicker than with other methods. Hemp-derived CBD concentrates are used in vaporizers just like other e-liquids and are commonly found in vape supply stores.
Capsules
CBD capsules, like any other capsule or pill, are a fast and simple way to take a predetermined dose. Though this method takes longer for CBD to reach the bloodstream, it’s very popular with newcomers.
Patches
Similar to nicotine patches, CBD patches are placed on the skin, which slowly absorbs the compound. Patches release CBD in small doses over several hours, allowing the consumer to get a small yet steady dose.
02. Find the right CBD suppliers
First and foremost, make sure the suppliers you wish to work with carry high quality hemp and hemp-derived CBD products. This is the most important part of setting up your new online business. Selling low quality CBD products can be dangerous, will affect customer satisfaction and damage your reputation.
Remember, there are fake CBD products sold on the market. To ensure you avoid selling these counterfeit products, get as much information as possible from your suppliers.
To find the right suppliers for your online CBD business:
Make sure your suppliers don’t make medical claims about their CBD products. When it comes to selling CBD—making any unsubstantiated medical claim is illegal. This is true for both wholesale suppliers and retail merchants. Making unsubstantiated medical claims can result in your business being shut down by the authorities and facing legal charges.
Avoid abnormally cheap wholesale products. Cheap products are usually an indicator of low quality. These products are often fake or don’t comply with regulations. In any case, avoid buying and selling cheap products, as they’ll ultimately hurt your customers, your business and your reputation.
Enquire about hemp sourcing. Reputable wholesalers will know their products’ hemp source. Before you start working with a supplier, ask about the hemp source and conduct your own research.
Try to sell hemp and hemp-derived CBD products that carry proper certification and are of a known source and quality.
Ask about the extraction method. As CBD oil is processed, they involve an extraction method. The best extraction methods are chemical-free, so the risk of finding unwanted chemicals in the products is close to none.
Ask your supplier for a certificate of analysis (COA). A COA will prove that the products have been tested and approved. Don’t trust it blindly, though—examine the COA in depth. Ensure the products are free of pesticides and chemicals, as well as microbiological matter like mold and bacteria.
Never deal in hemp and hemp-derived CBD products that don’t carry a proper COA.
Consider additional services, like CBD dropshipping. A good supplier provides more than just a great quality product, and can sometimes even handle delivery and fulfillment for you.
Additionally, some suppliers give you the option of creating white label products. These are products that aren’t branded, so you can add your brand to the packaging, like your logo or custom text.
With Modalyst, you can source relevant hemp and hemp-derived products from a curated CBD catalog and sell them on Wix. Get hassle-free inventory management, shipping and fulfillment—while controlling everything from your Wix dashboard.
Modalyst also lets you create your own custom packaging and private labels. Design your own stickers and get all orders sent with product labels, hang tags and packaging featuring your brand. Modalyst will even send you professional, high-quality images of your branded products so you can add them to your eCommerce website.
03. Comply with legal requirements
As CBD is newly legal and extracted from a plant that’s considered illegal, there are some requirements you must learn about in detail to comply with federal, state and local laws.
Many companies and service providers have strict requirements of CBD businesses. These include banks, insurance companies and regulatory bodies, such as the FDA or state business licensors. To ensure your online CBD business is operating legally, you must comply with all necessary regulations.
Some federal laws regarding the sale of hemp and hemp-derived CBD oils and products include information confirming that your product is actually derived from hemp, providing proper packaging and labeling and ensuring transparent company terms.
Local regulations change from state to state, so you’ll need to enquire locally about these requirements. To sell CBD on Wix, please review our requirements.
04. Create your online store
Unlike many online platforms and payment providers, Wix recognizes the rising need for CBD businesses. You can create your own professional online CBD store with our advanced eCommerce platform, complete with payment providers that support your business.
Successful online stores that attract new customers and encourage purchases are usually eye-catching and engaging. It’s not just about the product—your customers want a great customer experience. Designing a creative, advanced storefront that's on brand will attract and retain your customers, and ultimately help boost your sales.
To get started, pick a template designed specifically for CBD merchants or explore 500+ templates by Wix. You can choose a professional template that’s ready to go or fully customize the design of your CBD website to your liking.
When it comes to making sales, another important aspect is having professional product pages. If potential customers have trouble navigating, understanding or trusting your product pages, chances are they'll leave your site.
Effective product pages include beautiful, clear layouts that fit your products and brand. Each page should include high-resolution product images and a detailed description with the product ingredients, laid out clearly.
Efficient management of your store is critical for your online business’ success. This includes setting up shipping, incorporating sales tax and adding your store policies. To ensure you hit all the right marks, follow this comprehensive online store checklist.
05. Connect a payment provider
You've created your online store successfully, but to get paid online, you need to connect to a payment provider that supports merchants selling hemp and hemp-derived CBD products. This is a critical step, as many providers don't process CBD-related transactions, due to CBD being widely considered a high-risk business idea.
When creating your online CBD store, make sure to apply to a provider that supports CBD. Onboarding processes and additional requirements may vary for each payment provider, so it’s best to get a head start.
Wix offers several payment providers that support CBD merchants, like Square and Pinwheel, with more integrations coming soon. Currently, you cannot use Wix Payments as a payment provider for selling CBD.
06. Market and grow your online CBD business
The last step in building your online CBD retail business is marketing. For your business to grow, you need to make sure shoppers recognize it and can easily find your store online.
Before you create a marketing strategy, research your target audience. These are the potential customers who are likely to interact with your brand and purchase your hemp-derived CBD products. Any marketing efforts you make should be aimed towards this market.
The first place to start is SEO optimization. SEO affects your ranking on search engines like Google, and can directly determine how much traffic you get on your site. If you’re running a new and relatively unknown business, SEO optimization is a must.
Due to strict regulations surrounding CBD, platforms like Google and Facebook don’t currently allow paid advertisements for the majority of hemp and hemp-derived CBD products. This makes your organic SEO efforts even more important.
Another surefire marketing tool is creating a blog. With your own blog, you can write fresh and engaging content that CBD enthusiasts will love to read, and more importantly—share! A blog lets you put up material that wouldn’t otherwise fit in a meticulously crafted storefront. Discuss trending topics and relevant information on new products, or the industry as a whole.
After you’ve established your SEO and blog, you should turn to email marketing. Collecting emails from potential and existing customers can be achieved in various ways. Coming up with special offers that require submitting an email is a common example.
Once you’ve built up your mailing list, start sending out newsletters and other promotional content to make sure you remain on your customers’ radar. Emails are also a great way to announce sales, changes in policy, offer coupons and anything else you may want to communicate to your customer base.
Ready to go? Create an online store and start selling CBD now.
Geraldine Feehily
Marketing Writer, Wix eCommerce
Geraldine is a marketing writer for Wix eCommerce. She uses her broad experience in journalism, publishing, public relations and marketing to create compelling content and loves hearing user success stories.
