How much can u sell cbd oil for

How to Sell CBD Online 2022 | 7 Simple Steps

It seems that CBD (cannabidiol) is suddenly everywhere you look. Health stores, high streets, pharmacies, and even coffee shops are all excitedly stocking their shelves with CBD products. It’s a craze that’s quickly gathered momentum, and is set to keep growing over the coming years.

It’s been forecast that the CBD market in the US alone will exceed a whopping $20 billion by 2024 – so if you’re looking for an opportunity in a growing market, you’re in the right place to get in on this CBD revolution.

But selling CBD comes with its own unique set of challenges – especially if you’re selling online.

To help you set up your budding CBD business for success, we’ve put together this extensive guide to walk you through the tips and trip-ups that every CBD seller should know. We’ll ask important questions like “What is CBD?” and “Is it legal?” before walking you through the seven steps to setting up your own CBD online store:

How to Sell CBD Online – 7 Simple Steps

We’ll also give you an insider tip on the most common CBD mistakes to avoid, and offer advice from experts who’ve been through it all themselves.

If you’re ready to become part of a global, lucrative, and sometimes controversial movement, then read on and get ready to start your own CBD online business!

Now seems like a good time to point out that this article is primarily aimed at US sellers.

CBD laws in other regions may differ from the information given in this guide, so double check your local legislation before launching your business.

We’re not lawyers here at Website Builder Expert – we’re more into techy stuff – so please always seek legal advice to check your CBD business is all above board. Happy CBD selling!

What Is CBD?

Let’s start with the basics, because there’s a lot of confusion and misunderstanding around what CBD actually is. CBD, or cannabidiol, is one of the main ingredients of cannabis – but don’t let that put you off.

CBD isn’t psychoactive – that means it’s not responsible for any of the “high” symptoms associated with cannabis (like paranoia or euphoria). The ingredient of cannabis that causes those symptoms is called THC.

You can get CBD from both hemp and marijuana plants. This guide will focus on hemp-derived CBD, because it contains much less THC – around 0.3%, which is the legal limit allowed when selling CBD products (we’ll cover the legal side of selling CBD next).

Why Do People Use CBD?

So, why is CBD so popular? Well, people believe it has medical benefits without the negative side effects that come with THC. These benefits include helping to:

  • Relieve pain
  • Reduce inflammation
  • Relieve anxiety and depression
  • Ease migraines and nausea
  • Decrease seizures

Did you know? A drug containing CBD, called Epidiolex, was approved by the FDA (Food and Drug Administration) in 2018. This drug is used to treat rare forms of epilepsy, and was the first (and so far only) prescription drug to contain CBD.

There are plenty of different CBD products available. The main types include:

  • CBD tinctures – place a couple of drops under the tongue.
  • Edible CBD products – such as CBD infused chocolate, or adding it to coffee!
  • CBD creams – applied directly to the skin to help with inflammation or arthritis.
  • CBD capsules – tablets are a fast and familiar way of taking CBD.
  • CBD isolates – “purified” CBD that has been turned into a powder.
  • CBD vaporizers – vaping delivers quick results, and is a popular method of taking CBD.
  • CBD patches – similar to nicotine patches, this gradually releases CBD into the body.
  • CBD for pets – our four-legged friends can benefit from CBD, too!

That’s quite a list, and it’s barely scratched the surface of all the ways CBD can be taken. Nasal sprays, lollipops, and CBD oil-infused candles are just three examples of how you can get creative within these product categories.

Okay, so CBD won’t get you high, and there’s a wide range of product types to choose from. But is anyone actually reaching into their pockets to buy CBD products? What if this is just a passing craze?

Unfortunately, we can’t see into the future, but all signs and statistics are pointing towards CBD becoming a booming industry. The Farm Bill, passed in December 2018, has been largely responsible for the surge in CBD sales.

The bill allows farmers to legally grow hemp, opening the door for the CBD market to boom…

…and boom it did!

For starters, the US CBD market saw a growth of 562% from 2018 to 2019, and it doesn’t seem to be tiring after such an explosive sprint off the starting blocks.

As many as 14% of Americans say they use CBD. Treating pain was the biggest reason given, with anxiety the second most common cause for turning to CBD products.

Is CBD Legal?

A lot of the confusion around CBD is to do with the legalities of selling, buying, and using it. So we’ve picked out the key things you should know about the legal side of selling CBD online.

The first thing to make clear is that, yes, CBD is federally legal in the USA, as long as it meets certain requirements.

It is federally legal to sell hemp-derived CBD in the US, as long as it only contains up to 0.3% THC. If your CBD product contains more than 0.3% THC, it is legally defined as marijuana – not something you want to be selling!

Despite this, you do need to be careful – or at least mindful – about how you approach selling CBD online.

For one, different states have different rules and restrictions around CBD, and don’t always match up with the federal law. Because of this, you must always check your local legislation to make sure you’re not breaking any rules.

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For example, some states require CBD to have 0% THC rather than 0.3%, and in a few states any CBD is still illegal.

Aside from always checking your state’s laws, there are two main things to know:

1. You can’t make medical claims about CBD

We know, this seems designed specifically to trip up CBD sellers. While the main reason most people use CBD is for its medical benefits, you can’t make grand medical claims when selling CBD products.

This is because CBD hasn’t been officially researched or approved by the FDA – until more is known about the effects of CBD, you simply can’t make claims about its medical benefits.

For example, you shouldn’t advertise on your website that your products can help prevent or cure serious illnesses like cancer or Alzheimer’s. Be careful about what you’re promising your customers, and always ask yourself what evidence you have to back up these claims.

Top Tip! Evidence should be scientific, rather than anecdotal – e.g. “my great aunt Gladys took CBD and it magically cured her overnight”. The internet is full of stories like these, and unsurprisingly, they won’t protect your business from FDA warnings.

Like many other natural drugs, CBD can interfere with other medications, which is why it’s especially important to be careful with your marketing. In short, you can sell CBD, but you can’t start promising to treat people with it.

2. US sellers should avoid CBD edibles

While CBD edibles are legal in other countries like the UK, and are a familiar sight on US shelves, they’re actually illegal under US law. The FDA has banned adding CBD to food and drink under the Federal Food, Drug, and Cosmetic Act.

Until that changes – if it ever does – it’s best to avoid selling CBD edibles if you’re based in the US. Some companies market their CBD products as “dietary supplements” – do not do this. (You’ll get in trouble).

Instead, pick a CBD product that doesn’t involve food, drink, or diet, and sell safe in the knowledge that your business is totally above board.

How much can u sell cbd oil for

Over the last few years, cannabidiol (CBD) oil has grown from a niche alternative treatment to a multimillion-dollar market. And 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.

While there is momentum growing in terms of FDA approval and lessening of restrictions on selling CBD products, it can still be a very difficult vertical for businesses to navigate. This is largely due to the lack of federal legislation on the topic in the United States. In particular, eCommerce businesses wanting to sell CBD-related products must adhere to the specific and widely varying laws in each of the 50 states. This guide will help you understand and be better equipped to thrive in this fast-growing industry.

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.

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.

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 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 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.

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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.

Summary of CBD Products and Accessories You Can Sell:

  • CBD tinctures
  • CBD topical formulations
  • CBD isolates
  • CBD vaporizers and concentrates

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.

Choosing 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 well-known 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 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 if you want to sell CBD oil products, those products must be 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

Medical Claims

CBD retailers are not allowed to make medical claims on their websites, and neither are suppliers. Even though research shows potential benefits, the Food and Drug Administration (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 likely want to avoid that supplier entirely, as breaking this rule means the supplier may be breaking others as well.

Pricing

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.

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.

Understanding the Legality of CBD

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.

Federal Regulations

The Agriculture Improvement Act of 2018 (commonly known as the 2018 Farm Bill) legalized hemp on the federal level by removing hemp and its derivatives from the federal list of controlled substances. This legalized CBD so long as it derives from “hemp,” which is defined as the plant Cannabis sativa L. and any part of that plant, but only if it contains no more than a 0.3% concentration of delta-9-tetrahydrocannabinol (THC), which is the psychoactive component of cannabis.

Any plant that contains a higher than 0.3% concentration of delta-9-THC is classified as marijuana and remains a federally controlled substance and illegal on a federal level. And because it is still illegal, any CBD derived from such marijuana is also rendered illegal. The FDA has determined that CBD constitutes a drug or drug ingredient because a form of CBD is the active ingredient in an FDA-approved prescription drug (the drug EPIDIOLEX, for the treatment of certain seizures). Because of this, the FDA has taken the position that it is not lawful to add CBD to food, dietary supplements, or pet foods, even if the CBD comes from legal hemp. The same is true for other forms of delta-9-THC, since there are two drugs approved for therapeutic uses that contain a synthetic version of this substance.

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Accordingly, products containing cannabinoids cannot currently be legally sold as dietary supplements nor can they be added to FDA-approved ingredients and sold legally. The FDA regularly issues warning letters to CBD sellers advising that the FDA considers this the sale of unapproved new drugs in violation of the Federal Food, Drug, and Cosmetic (FD&C) Act. In addition, the FDA considers any claims that CBD can be used to treat medical conditions or for other therapeutic uses as the sale of misbranded or mislabeled drugs also in violation of the FD&C Act. Misleading labels and unsubstantiated claims on products may also be deemed deceptive trade practices in violation of consumer protection laws.

State Regulations

On a state level, there is a vast range of laws, regulations, and treatments of both hemp-derived CBD and marijuana-derived CBD. Caution is warranted because state laws are not always equivalent and do not necessarily allow the same conduct. State laws concerning hemp-based CBD may permit or prohibit one or more of growing, selling, and/or using. States may also treat sales of CBD products differently, whether they are for medical or recreational purposes and whether or not they can be incorporated into foods, dietary supplements, and/or topical lotions.

Many states follow federal guidelines on these issues but many do not. When selling CBD products, it is important to show that the specific CBD products you are selling are lawful within the state in which it operates. Keep in mind that several states also require retail licenses and/or registrations for merchants to sell already-processed CBD products, including Louisiana and New York.

Marketing Guidelines

The FDA has advised that whether a CBD or other hemp-related product may be marketed and sold depends, among other things, on the intended use of the product and how it is labeled and marketed. In particular, ingredients that are derived from parts of the cannabis plant that do not contain THC or CBD might be able to be marketed as dietary supplements and may not require the same type of lab certification. In any case, all products marketed as dietary supplements must comply with all applicable laws and regulations governing dietary supplement products.

In no instance may CBD products be marketed using unsubstantiated claims that the product can prevent, diagnose, mitigate, treat, or cure any diseases, and should NOT contain any misleading claims or statements lacking substantial scientific support.

Any marketing of CBD across state lines (which includes most eCommerce merchants) will implicate federal regulations in addition to the laws and regulations governing each state involved in the transaction. CBD sold within a state will be governed primarily by that state’s laws, although some federal regulation may still be a factor.

Selling CBD Through
Shift4Shop

Some eCommerce providers won’t allow you to sell CBD, but with Shift4Shop this is not a problem! In fact, Shift4Shop has more built-in features to help a CBD business than any other shopping cart software.

Here are some of the reasons Shift4Shop is the best eCommerce platform for an online CBD store:

Support for High-Risk Payment Providers

While CBD is legal to sell, it’s considered a high-risk industry by payment processors and many providers won’t work for sales of these products. Shift4Shop, however, provides a seamless payment experience for Shift4Shop customers.

Easy Tax Setup

CBD is subject to taxes that vary from state to state, including sales tax and sometimes a state-specific cannabis-related tax. Shift4Shop makes it simple to automatically charge the correct tax rates — no matter where your customers are located.

Full Suite of Powerful SEO Tools

Many of the most familiar online advertising methods aren’t available for CBD sellers — for example, Google and Facebook will not run CBD ads. Therefore, a strong search engine optimization (SEO) strategy is crucial. Shift4Shop has the best built-in SEO features in the industry, all geared toward helping your website get listed fast and start gaining rank immediately.

Built-In Blog and Content Pages

Since SEO is so important for CBD sellers, you need a way to fill your website with high-quality content that will rank well in searches. With Shift4Shop, you can instantly add a blog to your site for posting the latest CBD news, studies, homemade edible recipes, product updates, and anything else you see fit. You can also create unlimited extra pages to provide vital information like your store policies, product purity guarantees, general CBD educational information and FAQs, and much more.

General Compliance

Here is a quick checklist for you to help make sure you are approved to sell through Shift4Shop:

Post all ingredients, product descriptions, and labels in your shop in order for Underwriting to review and ensure that the products are FDA compliant.

Activate Shift4Shop age verification tool

Complete the CBD Compliance Statement Form and agree to the terms posted on shift4shop.com.

Provide a copy of your hemp handler license or special hemp processor license based on the state’s requirements for the sale of hemp-derived CBD products and/or state, tribal, or federal licensing information during the submission of your store (listed under the compliance statement).

Certify your products with a third-party laboratory for all of the listed products for sale in your store and post the results from the laboratory for consumer review and underwriting purposes.

Several states require retail licenses and/or registrations for merchants to sell already-processed CBD products, including New York and Louisiana.

CBD Labeling

Merchants must label CBD products in conformance with applicable regulations and in a manner that mitigates risk of regulatory agency enforcement actions. As each state may have its own laws that govern labeling (and sometimes these laws can conflict with one another), there is no one-size-fits-all approach. If a particular state is a relevant jurisdiction, its laws should be more thoroughly examined. Below is a summary of general guidelines that pertain to federal labeling requirements. Generally, labels should include: