You’ve likely seen just how many brands are selling CBD products nowadays, many of them start-ups. If you have an entrepreneurial brain, you’ve probably been thinking about how to get involved with this market yourself. While the CBD market has been around for a few years, the industry is in a constant state of development and innovation, so it’s certainly not too late to carve out a profitable niche.
But just how do you go about doing that? We’ll talk about what CBD products to sell, how to make your company unique, and how to build customer loyalty in this post.
But first, what is CBD?
Short for cannabidiol, CBD is a constituent of hemp and cannabis plant with significant therapeutic potential, and no intoxicating properties. CBD is one of many cannabinoids found in these plants, but it acts on the body – and crucially the endocannabinoid system (ECS) – without producing the psychoactive effects that its cannabis cousin tetrahydrocannabinol (THC) does.
After the federal government legalized hemp-based products in 2014, companies have been selling an assortment of CBD-infused products, and they have become extremely popular in the natural health and wellness scene. Some of these products have been accused of being a bit gimmicky, but many are finding the more serious products – such as tincture oils, e-liquids and creams – to be very therapeutic.
What type of CBD should I sell?
There are a couple of ways for your brand to make a name for itself in the competitive CBD market. If going for a regular product, then it’s essential to focus on quality. The FDA isn’t regulating CBD products at present, so it’s paramount that you can assure potential customers your CBD is the real deal by getting whatever you sell tested by a third-party laboratory.
You could take a standard CBD oil and give it a unique twist. There are many supplements that are thought to pair well with CBD – perhaps you could strike lucky with a novel combination? Or perhaps you know something that would go great with CBD. All kinds of CBD-infused products have been popping up lately. But if you do go down this route, make sure your product has a genuine benefit over other types of CBD, and isn’t just CBD-infused for the sake of it.
If you don’t have an idea, but are keen to start selling CBD anyway, then buying CBD wholesale is the way to go. Many online CBD vendors have wholesale options for businesses, with products available at a greatly reduced price when making a bulk purchase. Take advantage of cheap wholesale prices, as this is the best way of getting lots of stock, while keeping initial costs low.
Which CBD products are underrated?
Finding a niche that is primed for major growth is clearly the best tactic for making money selling CBD products. That’s why you may get better results from avoiding CBD oil and e-liquids, since these have been around a while, and looking at emerging markets.
For instance, the male skincare industry is set for big growth in the coming years, and CBD has a number of benefits for the skin. Sure, many companies are already selling CBD topical products, but how many of these are targeted specifically at men? For any new company, it is often more rewarding to go for a very narrow market at first, and really reach out to a specific demographic. If that works out, it then becomes easier to expand in the long run.
Building customer loyalty
With so many brands to choose from, there is nothing stopping CBD users hopping from one company to another to find the best deals. This is where you have to be savvy, and work to get a new customer to stick with you.
If selling online, perhaps enclose a coupon with the customer’s first purchase so they can get a great deal if they buy with you again. Or perhaps offer a subscription service, and market the product at a slightly reduced price. It’s worth going the extra mile to get a new buyer to stick with you, as this ensures a steady stream of profit. If you’re constantly having to seek out new customers to break even, this is more laborious, and there’s no guarantee that you’ll keep finding them.
There are lots of opportunities in the CBD scene, and analysts expect the entire market to keep growing well into the 2020s. If you’re looking to start a business, selling CBD could prove to be very lucrative.