As more states decriminalize the use of marijuana and make it legal to consume cannabis products, the demand is increasing. Cannabidiols, also known as CBD, is growing in popularity and can be found in most major retailers. CBD-infused products are appearing everywhere, from human to pet products, and are becoming a viable e-commerce offering. Find out what it takes to sell CBD online and how to set up an ecommerce business from home.
What is CBD?
CBD, short for cannabidiol, is a non-psychoactive cannabidiol used in natural products. CBD can be extracted from hemp or marijuana plants, and the oil is infused into tinctures, edibles, oils, balms, and lotions. CBD acts as a natural medicine that helps alleviate pain, anxiety, paranoia, epilepsy, and cancer-related ailments. The fact that this oil is free of the psychoactive ingredient THC, which is found in marijuana, has led to legalization and wide-spread acceptance of its use.
Legality of selling CBD
Since CBD is a product derived from the cannabis family, there are rules surrounding the legality of its sale and use. At the federal level, CBD is legalized. State laws, however, can change at any time to regulate the use of the oil. Products are required to contain less than 0.3 percent THC; occasionally the FDA will call out unapproved products that make false or inaccurate health claims.
Statewide laws can vary. Some states allow for marijuana-derived CBD while others only allow for industrial hemp-derived CBD. Generally speaking, hemp-produced CBD contains lower levels of THC and is legal across the nation. At this time, only hemp-based CBD products can be sold online.
Products containing hemp-derived CBD, such as food, supplements, devices, or cosmetics, are subject to the Federal Food, Drug, and Cosmetic Act and must be labeled and marketed accordingly. Before going into business, perform thorough research on state laws and understand all the dos and don’ts of online selling.
California marijuana lawyers are constantly following changes and updates to the legality of marijuana and cannabis products. The legal team at McAllister Garfield is a full-service law firm paving the way for legal strategies and services for the marijuana industry. They represent marijuana companies nationwide and ancillary businesses such as lenders, investors, social media companies, consultants, vendors, and packaging companies. McAllister Garfield has been at the forefront of marijuana and cannabis law since 2009.
How to sell CBD oil online
Before selling any CBD products online, one must obtain a business license and a resale license if working with wholesalers. Resale licenses and permits are handled at the state level, so be sure to learn what the state requirements are in order to determine if a resale license is necessary. Find a reputable supplier that is state or federally certified to sell high quality CBD products.
Create a brand and website with an applicable domain name. Finding reliable credit card processing may be tricky, as CBD is not approved by all payment processors. Shop companies that can handle such payments and take the time to compare credit card fees.
A fully accountable ecommerce accountant can efficiently manage cash flow, inventory, and payroll, all while providing strategic financial solutions to help an online business thrive. The experts at Fully Accountable offer tailored ecommerce solutions to increase a brand’s bottom line through daily bookkeeping, account reconciliation, monthly forecasting and budgeting, and cash flow management support.
Come up with a clever marketing strategy to stand out from the crowd. Use methods like SEO, blogging, keyword research, and engaging content that relates to consumers and their unique needs.
Establish a system for storing and managing CBD inventory. Make sure that fulfillment technology is in sync with the ecommerce platform, payment processor, and other applicable software. This ensures timely fulfillment and shipment of orders to customers.