Are you looking to enter the lucrative online CBD business? With CBD sales set to approach the $1.8 billion mark in 2022, it seems like a no-brainer to jump on the bandwagon and make a profit in this lucrative field. Before you take that leap, however, it is in your best interests to learn the details of how to flourish in this highly competitive niche.

More about CBD.

Cannabidiol or CBD is a non-psychoactive extract of the marijuana or hemp plant. When it comes from the latter, it contains no THC, the substance that can make users high.

Thanks to the passage of the 2018 Farm Bill, hemp-derived CBD products are legal in all states. There is currently a robust market for these supplements, drinks, and medications. People are using them to relieve chronic pain, recover from surgical procedures, and contend with mental health conditions. CBD products come in numerous forms, including edibles, pills, tinctures, ointments, oils, balms, and vapes.

Tips for running a successful CBD business.

There is a huge array of CBD products available in a variety of forms. Moreover, customers are already demonstrating a growing acceptance of and desire to purchase CBD. But just what do you need to do to optimize the chances of your CBD-related ecommerce success?

First, you must find a payments provider specially designed for CBD. This is because credit card processing for CBD businesses cannot be conducted on conventional sites like PayPal and Shopify. Even though hemp-derived CBD goods are legal in all states, businesses that sell them still fall into the “high-risk” category. As a result, you must sign up for a high-risk account with a merchant services provider who is experienced with specialty markets. 

Don’t fall into the trap that many merchants have already experienced. You may initially be accepted for a merchant account, and months of accepting customer payments might go by without a hitch. However, in the end, the company will learn that you are selling CBD items and will immediately close the account, leaving you with no way to run your ecommerce store while potentially causing serious damage to your brand and credibility.

After you find a payment provider, your next job is to market your website. One of the best and most affordable ways to accomplish this is through search engine optimization (SEO). This strategy involves learning what specific words your customers will use to search for the products you are selling and then incorporating them into your website and marketing campaigns.

Taking advantage of social media, blogs, and guest postings are all great ways to get these targeted keywords to the consumers who are looking for CBD products. Because voice search technology in the form of personal speakers like SIRI and Alexa is becoming ever more popular, remember to put some of your keyword phrases in the form of commonly asked questions. An example would be, “Does CBD help with depression?”

Once you have come up with effective keywords, your next task is to develop strong content for your website. Of course, text and pictures related to your CBD products provide interested customers with a rich source of information that helps them to determine if they should make the purchase. However, that isn’t all that robust content accomplishes. The more relevant information that is indexed on search engines like Google, the easier your website will be to find, and the bigger the potential customer pool will be.

Your website should not be the only place for this rich information. Make it one of your highest priorities to also set up social media pages and blogs. The easier it is for people to get to your site, the better your chances of increasing profits. Make it a goal to produce anywhere from 10 to 20 pieces of content for your new CBD business each day.

Content doesn’t just need to be in text form. People love video testimonials and product demonstrations. Sites like YouTube offer no-cost accounts, which can mean free advertising and the potential for even more customers.

Keep in mind that you don’t need to be in a vacuum when it comes to selling. Recruiting online influencers to help you market your products can build your credibility, drive traffic to your website, introduce your business to people who are already engaged, and markedly amplify your social media follower counts. Never underestimate the power of celebrities, even of the micro online variety.

Once you attract those precious customers, you can’t just leave them languishing. One of the most effective and affordable ways to keep your current customers engaged and to incentivize purchases is via email marketing. Once they’ve given you permission, develop campaigns that provide valuable information and compelling deals without making extravagant claims or appearing spammy.

Finally, you can pay other retailers or influencers a small commission, generally about 15%, to sell your CBD products. Just sign up as an advertiser on an affiliate platform. List your product fee, advertiser rate, and commission. Then, approve the affiliates you want to connect with. These companies will then be responsible for doing all the marketing and meeting the legal requirements necessary to sell CBD products on your behalf.

Get started with your CBD business today.

As you can see, getting your CBD products to the customers who want them is more complicated than it appears on the surface. However, partnering with the right high-risk payment processor – one with established connections to US-based banks – can give you the ecommerce platform and superlative customer care you deserve. Couple that with an effective marketing campaign and the drive to succeed, and your fledgling CBD store has every chance at sustained success.