Cannabis has become a hot topic of conversation in recent years. More and more people have realized its health benefits, increasing interest in the product. Many are now considering starting their own CBD eCommerce businesses to capitalize on this surge. Since the world is becoming increasingly digital, it’s no surprise that people do most retail and product sales online. However, it can be challenging to know how to sell cannabis online.
Most major banks and payment processors consider CBD a high-risk industry, which may prevent you from being approved for a merchant account if you’re selling it online directly. It may also prohibit you from advertising your products on many marketing platforms. Therefore, overcoming these obstacles will require creativity. So, here’s how you can take your cannabis business on the eCommerce portal.
Choose Your CBD Niche and Products
Be clear about what you want to sell when launching your CBD business on an eCommerce portal. Whether it’s trendy or classic, it’s up to you. Analyze the overall market conditions. You can identify the general market niches first. For instance:
- CBD-infused foods and drinks
- CBD pet products
- CBD-based cosmetics
Once you’ve selected a niche, decide which types of products you’ll offer. Depending on cannabis consumption, the products like these from the best online dispensary Canada include sprays, pills, tinctures, capsules, topicals, and CBD edibles. Again, it’s up to you – all you have to do is think about your potential client’s needs when making your choice.
Develop a Comprehensive Business Plan
A well-thought-out plan is the foundation of every successful business. Managing your CBD business is no different, and it’s crucial to prepare in case you encounter any surprises. Here are examples of how to develop a comprehensive plan for your cannabis eCommerce business:
- Perform a Market Analysis: You can analyze the CBD market to learn about your industry’s size, competitors, and other factors affecting the market. Eventually, you’ll make informed decisions about your pricing, positioning, and go-to-market strategy.
- Brand Name and Product Range: Defining your brand name and strategy defines your business. So, you should know your core values and how you can differentiate yourself from your competitors. It would be best to describe your product range briefly, focusing on the quality and competitive parameters so you lead your potential customers to understand the value of your product.
Build Up Your Site
It would help if you created your cannabis ecommerce portal using the best ecommerce platform of your choice to get your operations started. Users prefer aesthetically pleasing websites that are easy to use. Therefore, it would help create a customized design rather than a blank canvas, with a simple website theme that pre-maps the final store design.
If you want your cannabis ecommerce store design to be successful, you must present essential product information prominently. Your customers will be interested in the product specifications like dosage and strength, origin, extraction method, and benefits. The CBD market is relatively new. Therefore, you can expect more first-time buyers. Be aware of the navigation. Ensure you design your website to accommodate these new customers to ensure a seamless check-out process.
eCommerce platforms that support cannabis
If you already own a website with a shopping cart, you can easily integrate your eCommerce services to sell CBD. Examples of ecommerce platforms that support cannabis include:
Understand the Laws and Regulations Around CBD
Following the enactment of the 2018 Farm Bill, cannabis became federally legal for medical use in 2018. Since then, 13 states have legalized it for recreational purposes. Most states, however, still prohibit CBD and THC. You need to understand these regulations if you want to take your cannabis business on an ecommerce portal.
For example, federal law requires that CBD products contain less than 0.3% THC to sell online. It’s one reason it’s challenging to sell CBD online. Even though further research is required, scientists do their due diligence to substantiate the claim that cannabis is preventative and remedial.
Choose the Right Payment Processor
Despite cannabis’s legal status, payment processors like PayPal avoid its transactions because they are high risk. To cope with this issue, you need to find a payment processor with experience dealing with cannabis businesses and who can support cannabis transactions and payments.
Why does it matter to your cannabis business? For one, you could be more susceptible to chargebacks and fraud. Therefore, ensure that your business follows all CBD regulations and rules by working with a payment processor that will take the associated risks.
Market Your Business
Create content that educates interested consumers about cannabis and ensures no misinformation. It is essential to know this because many people still misunderstand it because of unsubstantiated medical claims and misinformation online.
You could also leverage your SEO. The goal is not just to publish content but also to publish well-researched content that will help you dominate search engine results. Here, educating your customers is essential. Take advantage of social media as well. Advertising on social media platforms can be tricky because of its sensitive nature, but partnering with influencers can create real growth for your business.
The demand for cannabis products has led to a surge in its use. Therefore, more businesses are integrating ecommerce portals to maximize their return potential. This post presents steps you can take to move your business to an ecommerce portal.