In recent years, the CBD industry has exploded. As more and more people learn about the potential health benefits of CBD, they are eager to try it for themselves. This has created a massive demand for CBD products, which has created opportunities for entrepreneurs to start their businesses by dropshipping CBD products.
But is there still money to be made in dropshipping CBD? And if so, what do the best dropshippers do to succeed? The team at Oliver’s Harvest shared their experience about all things dropshipping so you can succeed.
Let’s take a look.
What you need to know before starting a CBD dropshipping business
The CBD industry is still in its early stages, meaning there is much opportunity for growth. However, this also means the industry is highly competitive and constantly evolving. To be successful in dropshipping CBD products, you need to keep up with the latest trends and developments in the industry.
Here are some things you should know before getting started:
- CBD is short for cannabidiol, a compound found in the cannabis plant.
- While CBD, the most popular hemp extract, Delta 8, Delta 9, THCO, and others, have exploded and are taking over the industry! More details are below.
- CBD is non-psychoactive, which means it will not get you high.
- CBD is believed to have various health benefits, including reducing anxiety, improving sleep, and reducing pain (but you have to be careful about how you market CBD…more on this later).
- The CBD industry is expected to be worth $29 billion by 2025.
Now that you know a little more about the CBD industry let’s look at whether dropshipping CBD products are still a viable business opportunity.
Is there Still Money to Be Made in Dropshipping CBD?
Yes! There is still a lot of money to be made in dropshipping CBD products. The key is finding a niche market and differentiating yourself from the competition.
Here are some tips for finding a profitable niche:
- Find a niche market that is underserved or undersaturated.
- Look for markets that have high growth potential.
- Identify customer pain points and address them with your products.
- Consider a market you are a member of or customer of.
Let’s talk about the last point…
Consider a Market That You are a Member of or are a Customer
One of the best ways to start could be to consider the different groups you are a member of or frequently visit. For example:
- Do you regularly visit Facebook groups, Twitter, and Reddit? Which topics are you regularly engaged with?
- Do you visit any online forums? If you do, other people with similar interests could likely benefit from CBD products.
- Do you belong to any professional organizations? There may be potential partnership opportunities with an established organization.
You can reduce your learning curve and hit the ground running by targeting a market you are already familiar with. When you start, you don’t need to worry about 10,000 customers; focus on getting the first one, then the first ten customers.
With those first few customers, understand everything you can about their lifestyle: what they like, what they don’t like, and how they use your products. This feedback will help you constantly improve your offering and ensure that you are always adding value for your customers.
Now that we’ve discussed finding a niche market let’s look at how to differentiate yourself from the competition.
Differentiate yourself from the Competition
Once you have found a niche market, you need to differentiate yourself from the competition. There are a few ways to do this:
- Use the insights learned from your first few customers. What do they love or hate about the industry and competitors?
- Offer superior customer service.
- Carry products that are unique or hard to find. Delta 8, Delta 9, and other cannabinoids extracted from hemp are quickly trending in the industry.
- Provide informative content that educates your customers about CBD. Social media is a perfect medium for this. Engage with groups you already belong to and provide value. Don’t worry about asking for the sale yet; educate excitingly and consistently, and sales will come.
By offering a unique product or superior customer service, you will be able to stand out from the competition and succeed in dropshipping CBD products.
What do the Best Dropshippers do to Succeed?
There is no one-size-fits-all answer to this question, as the best dropshippers do whatever it takes to succeed. However, here are some tips that the best dropshippers use to grow:
Understand your Product
The best way to succeed in any business is to understand your product well. This is especially true in the CBD industry because there is a lot of misinformation about CBD. To succeed in drop shipping CBD, you need to understand precisely what it is and how it works.
This means researching and reading up on the latest scientific studies about CBD. It also means staying up-to-date on the latest industry news so that you can anticipate changes and adapt accordingly. The better informed you are about your product, the better you will be at selling it. Several Reddit and LinkedIn groups regularly share valuable hemp knowledge. Project CBD is an excellent website to learn about CBD research studies and findings.
Should you sell Delta 8 and Delta 9 products?
There is a lot of confusion in the industry about Delta 8 and Delta 9 THC. Delta 8 is an isomer of CBD found in minimal concentrations in hemp. Delta 9 THC is the psychoactive component of cannabis that gets you “high.”
The 2018 Farm Bill legalized hemp-derived CBD with less than 0.3% Delta 9 THC. Products with Delta 8 and Delta 9 extracted from hemp meet these criteria and can be sold in most states. This is a reason to have a trustworthy supplier with valid third-party lab results to ensure you sell legal products.
Selecting a Trustworthy Supplier
Another critical key to success in dropshipping is working with a trustworthy supplier. This is crucial because your supplier will be responsible for manufacturing and shipping your products. If they are not reliable, they will reflect poorly on your business.
To find a trustworthy supplier, look for one that is transparent about its manufacturing process and uses GMP-certified facilities. You should also ensure that they conduct third-party lab testing on all their products and make the results available to customers.
Investing in Quality marketing
Finally, one of the most important things you can do to be successful in drop shipping CBD is to invest in quality marketing. With such a saturated market, it’s crucial that you find ways to stand out from the crowd.
One way to do this is to invest in targeted online advertising. While you cannot use Google Ads or Facebook Ads, you can find third-party ad platforms that allow CBD advertising. If you run an eCommerce store, one of the best ways to advertise is through influencer marketing. Find social media influencers passionate about health and wellness and see if they would be interested in promoting your products to their followers.
Yes, entrepreneurs still have plenty of opportunities to succeed in drop shipping CBD products. The key is to have a good understanding of your product, work with a trustworthy supplier, and invest in quality marketing. By following these tips, you’ll be well on your way to building a successful dropshipping business!
If you have additional questions, the team at Oliver’s Harvest can help you figure out how to get your CBD dropshipping program up and running quickly.
How much does it cost to start a CBD dropshipping business?
The cost of starting a CBD dropshipping business will vary depending on the products you choose to sell and the marketing expenses you incur. However, you can expect to spend between $250 and $2,000 to get your business up and running.
What are the shipping costs for CBD products?
The shipping costs for CBD products will vary depending on the weight and size of the products you sell. For example, to ship a 1-ounce bottle of CBD oil, manufacturers charge you the product price plus shipping, plus an additional $5 to $9 to ship. Oliver’s Harvest charges only $5 per shipment to your customer.
Do I need a license to sell CBD products?
You may need a license to sell CBD products depending on the state you are located in and the regulations that apply to your business. For example, some states require all companies that sell CBD products to obtain a special license.
What are the legal restrictions on CBD?
Entrepreneurs need to be aware of several legal restrictions on CBD before starting a business. For example, the 2018 Farm Bill legalized hemp-derived CBD products with less than 0.3% THC, but some states have laws and regulations regarding CBD. Make sure to research the legal restrictions in your state before starting your business.
What are some common problems with dropshipping CBD products?
Some common problems with dropshipping CBD products include working with an unreliable supplier, not understanding your product, and investing in poor-quality marketing. Make sure to research and avoid these common mistakes to set your business up for success.