Dropshipping for cbd oil

Sell CBD Online: A Complete Guide to Dropshipping CBD

More than 25% of adults in the US have tried CBD, while one out of seven say they use CBD products every day.

While 40% of consumers are in their 20s, CBD is popular among people of all ages. Fifteen percent of people 60 or older enjoy it, too.

If you’re contemplating selling CBD online, now is the time to take advantage of this global movement.

Analysts expect the global CBD market to reach $20 billion in sales by 2024. That’s an impressive compound annual growth rate (CAGR) of 30.7%

Selling CBD online presents a few obstacles you must overcome before launching your business. From the legalities that surround the industry to payment processor risk assessments, you must do your research to stand-out in the CBD market.

What Is CBD?

CBD stands for cannabidiol, a naturally-occurring compound that is found in the cannabis plant. It is only one of over one hundred phytocannabinoids that supply the cannabis plant with its robust therapeutic profile.

Cannabidiol acts on cannabinoid receptors in the human brain to alter neurotransmitter releases and reportedly helps address a wide range of health claims—from ridding a simple headache to chronic pain.

CBD is non-psychotropic, unlike tetrahydrocannabinol (THC), which is the primary mind-altering substance found in cannabis.

The cannabinoid from hemp and marijuana plants is extracted to produce products such as oils, tinctures, and topicals. Now, manufacturers are adding CBD to coffee, tea, bottled water, beer, cosmetics, and more. This recent shift is largely due to changes imposed by the 2018 Farm Bill.

The Farm Bill allows each state to decide whether to legalize the sale of products made with CBD derived from hemp within its borders. It also changes the definition of marijuana in the Controlled Substances Act. Now, the definition doesn’t include CBB derived from hemp, so it has been removed from the DEA’s list of controlled substances.

Thanks to the Farm Bill, US Farmers can legally grow industrial hemp , which means product availability will only continue to increase.

Is It Legal to Sell CBD Online?

Whether you can launch an online CBD business depends on your state of residency. You must also consider the products you intend to sell and whether you want to start selling CBD extracted from the marijuana or hemp plant. You can only sell CBD products derived from hemp online.

While the 2018 Farm Bill opened up the sale of CBD, it didn’t alter the FDA’s authority to regulate products. While many states removed hemp from their controlled substances acts, some still prohibit the sale and consumption of cannabidiol.

Even in states where CBD is legal, some limit the sale of certain types of CBD products or require sellers to have an appropriate license.

Three states have restrictions on all forms of cannabis. In Idaho and Nebraska, hemp-sourced CBD for any use is illegal. South Dakota is one of the most strict states in America regarding cannabis use—CBD remains illegal and remains on the state’s list of high-risk, controlled substances.

If you’re selling CBD products online, you must ensure that you have the right systems in place to comply with state laws surrounding CBD fully. Consider implementing product-based shipping restrictions to help you stay within safe shipping zones.

How to Start Selling CBD Products Online

While selling CBD products with less than 0.3% THC is legal in the US and the EU, it’s prohibited in Canada and Australia.

Dropshipping allows you to sell CBD products without handling any of the inventory. Your CBD supplier maintains, packs, and then ships products to your customers.

This fulfillment model is especially attractive for entrepreneurs who are looking for minimal startup and overhead costs. Another benefit to dropshipping is that you’re not responsible for maintaining the precise temperature for food and hemp products.

Your CBD supplier will ship products directly to your buyers, and you pocket the difference between the wholesale price and the amount you sold it for—money in the bank for every sale.

Dropshipping relieves you of handling the more technical and logistical aspects of fulfillment. In turn, you get to spend your time developing a marketing strategy for your new business, fine-tuning your social media accounts, and attracting niche customers to your website.

1. Select Popular Products from Reliable CBD Suppliers

Today, you can find CBD in just about anything. Some of the most popular products on the market include tinctures, topicals, infused edibles, and even novelty products such as bath bombs.

  • Edibles: Edibles make up some of the most popular CBD products and include candies, baked goods, gummies, cooking oils, and other foods. These products face increased scrutiny from the FDA, but more and more products continue to enter the market.
  • Topicals: Many people seek relief from chronic pain using topicals, including creams, gels, and sprays. You can place these products directly on your skin to address a specific area of the body.
  • Vape Concentrates: There are also CBD oils and waxes that are made exclusively for vape machines. These products are compatible with specially designed devices that vaporize the CBD for the consumer to inhale.
  • Sublingual Tinctures: Sublingual tinctures come in small brown bottles with a dropper inside. You place the CBD-containing drops under your tongue, which allows the oil to permeate your bloodstream.
  • CBD Capsules: Those looking for a convenient and quick way to enjoy CBD buy it in capsule form. They’re easier to ingest than isolates and tinctures and ideal for buyers who aren’t interested in edibles or prefer to take CBD in a more familiar form.

Not only is it essential to select the right products, but you must do your research to select a trustworthy supplier to source from.

When considering suppliers, ask them questions about their growing standards, extraction methods, certification, and testing.

Growing Standards and Extraction Methods

Consumers are increasingly concerned about how the products they use and consume affect the environment, which means you should be, too.

One of the first things you should scope out about any supplier is to ensure they’re maintaining clean and sustainable growing conditions.

Hemp is known for having a positive impact on the environment, as it can soak up contaminants in soils, sediments, sludges, surface water, and groundwater. If CBD is not extracted properly, it can contain these harmful substances.

The way a grower extracts CBD from the hemp plant will also affect the quality of the final product. While petroleum-based extraction is the most common (and cheapest) method, it utilizes harsh chemicals such as propane and butane, which can negatively affect the product. For this reason, the most favorable extraction method is CO2 extraction.

Testing and Certification

To provide the best products, your supplier should have strict testing procedures in place—this includes sending their products to third-party testing facilities. Through these tests, the supplier will obtain an analysis of the potency of their product, as well as confirm that the product is free of contaminants.

As part of your research, look for suppliers on the US Hemp Authority ’s list of certified companies. You’re more likely to gain customers’ trust by picking a CBD supplier with an official certification.

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2. Obtain Proper Business Documentation

Before you start selling CBD online, you’ll need to go through the process of becoming a legitimate retailer by obtaining a resale certificate and Tax ID.

A resale certificate allows resellers to purchase goods from a vendor without paying sales tax. The reseller (you) sells the product to the end-user (your customer) and collects sales tax.

The requirements for resale certificates vary by state , and if you’re planning on reselling merchandise in multiple states, you must obtain a certificate in each state you’re selling in. This may sound like a lot, but you will discover that some resale certificates cover multiple states, and some states don’t require one at all.

To apply for a resale certificate, be ready to present the following information:

  • Your name, address, phone number
  • Your Employer Identification Number (EIN)
  • Description of your business
  • Description of the items you intend to sell

You will provide your signature to verify that you’re purchasing the items in good faith and will resell the items you’re purchasing.

If you don’t have an EIN yet, you’ll need to apply for one of those, too. This is also called a Federal Tax Identification Number, which is used to identify a business entity. As a general rule, all businesses need an EIN.

You can apply for an EIN in several ways, including submitting an application online.

3. Partner With a CBD-Approved Payment Processor

Next, you’ll need to find a reliable credit card payment processor. This can be tricky for sellers of CBD products, as the payment gateway landscape is littered with grey areas surrounding “high-risk” items. Many payment processors won’t take on customers selling these products.

At this time, the sale of CBD products is not approved by all payment processors, so you’ll need to find a company that approves high-risk merchant accounts.

Be aware that credit card fees associated with CBD payment processing can vary by merchant depending on a processor’s risk assessment.

When choosing a payment provider, guarantee that it can seamlessly integrate with your preferred ecommerce platform and checkout method. Flxpoint, for example, offers a payment processor integration with Square Payments , allowing users to save credit cards on file to accept payment for wholesale and dropship orders.

4. Set Up Your Online Store

Finally, it’s time to set up your ecommerce platform.

Take the time to do some research before deciding which platform to use. You’ll need to ensure that the platform allows you to select your preferred payment gateway. Plus, check service and community policies to ensure you advertise and sell your products within the platform’s boundaries.

Start Your Online CBD Business Today

Sure, there are a few bureaucratic hoops to jump through before you can sell CBD online.

However, if you do your research, you can get ahead of the curve by solidifying your business plans, working with high-quality, verified CBD suppliers, and partnering with a CBD-approved payment processor.

If you’re interested in sourcing CBD from trusted suppliers, contact our team today to get started.

CBD Dropshipping: Everything you need to know!

Dropshipping is a brand new modern online business model, in which you are only required to pay a small amount of initial investment. In another way, this business type doesn’t ask you to own a specific force of physical inventory, and you can totally sell goods via your website or any way that you like.

At the same time, CBD is currently legal in Europe and the United States, and you might see like you can see it everywhere all at once. You can see the coffee shops in the United States sell CBD lattes, some spas that provide CBD facials, and even lotions with CBD or hemp oils are being made and produced by beauty companies. Dropshipping CBD products is really simple in its process, which is also a cost-effective way..

If you are looking for an online business chance, I will give you’ve come across CBD dropshipping right in the recommended list. However, how does CBD dropshipping work? What are the actual benefits? or is this profitable enough for you to practicalize for your entrepreneurial dream? So, before we get any further in implementing a CBD dropshipping business, let’s start with our CBD Dropshipping Everything you need to know article today to make sure you thoroughly understand it before starting this appealing business!

What is CBD dropshipping?

Hold on, first things first. Do you know what CBD is? CBD stands for cannabidiol, which is the second most prevalent of the active ingredients of cannabis (marijuana). According to the US National Library of Medicine, CBD is understood as a chemical compound from the Cannabis Sativa plant, which is also known as marijuana or help.

CBD is a naturally occurring substance used in goods like oils and edibles to impart a feeling of relaxation and calm. One of its cousins is delta-9-tetrahydrocannabinol (THC), which is in contrast with CBD because the major of this ingredient is in marijuana; meanwhile, CBD is not psychoactive. Some studies point out that CBD has powerful anti-anxiety, anti-inflammatory, anti-convulsant, and pain-relieving properties.

Dropshipping is not so strange in today’s world, as 33 percent of online stores choose this method as a fulfillment model. Dropshipping is known as a kind of retail fulfillment method, which doesn’t have to get a store for stocking products, and you buy goods from a third-party supplier instead.

Subsequently, the products will be directly delivered to the consumer. In this method, the seller will not have to handle or touch the product in a direct way. Dropshipping is so beneficial for entrepreneurs because the owners don’t have to follow the traditional retail model by opening a brick-and-mortar store to stock products; meanwhile, the suppliers are those who take charge of storing goods in warehouse space.

So, what is the merchant is the main responsibility in this form? They are responsible for getting customers, then processing orders. This means you will become a middleman, and you will get the share of the profit by marking up the items that you sell. Sounds so simple, right? That’s why you can easily join in and build a long-lasting business in the long term right from your laptop.

At present, dropshipping CBD in the United States and Europe is legal, and it still keeps the simple process. Also, there are many CBD combined products that you can see in the market, from CBD infused beauty products to CBD infused coffee. CBD oil tinctures, CBD edibles such as capsules or soft gels, and CBD topicals such as creams and gels would be the most popular items.

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How does CBD dropshipping work?

There is a CBD company named Doc Patels that has pointed out that drop shippers should follow the information given in the order, after that, we will find the product, package, and complete the order. More detailedly, Doc Patels also marked the process of how a CBD dropshipping order work:

  1. There is a customer who visits your website online and decides to buy an item.
  2. You will be notified about the purchase.
  3. Then, you receive the order’s information and forward it to your dropshipping partner.
  4. The dropshipping partner will collect the order to packaging it.
  5. Finally, your customer will get the package shipped on your behalf.
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In some ways, CBD dropshipping does benefit your business when you don’t even have to buy anything upfront and enable your business to have an opportunity to provide a large number of different products and see what will work for your business model best.

Is CBD dropshipping profitable to do?

As I have mentioned, using drop-shipping CBD is getting more and more popular over the years. There have been so many people who can make actual money by selling CBD, and it is recognized to have the profit potential. Here are 3 main reasons for making CBD dropshipping profitable to help you find out why dropshipping CBD may be right for your business model.

CBD industry is growing fast

There are leading expert cannabis researchers who have made a BDS Analytics and Arcview Market Research project on the sales of CBD products in the U.S.

They predict the sales of CBD goods will exceed $20 billion by 2024, and the market size is increasing year by year. Meanwhile, the profit potential is unlimited.

Additionally, it is reasonable to afford the process of extracting CBD from the hemp plant for two reasons. Hemp is remarkably less expensive than cannabis, and hemp also contains more CBD than cannabis, making the extraction process inexpensive.

CBD is effective and Customers may repurchase

An item can be repurchased from one to many deals with many customers. Your customer can consistently use to experience the benefits of CBD, which can effectively contribute to your business profit. In addition to that, CBD has a powerful capability in healing ADD, ADHD, back pain, epilepsy, insomnia, migraines, panic disorders, and many more. That’s why almost anyone and even pets can utilize CBD, and when they repurchase, your profit will go huge!

Dropshipping CBD is cost-effective

Of course, this is a cost-effective method when you can completely reduce or eliminate the fee for paying warehousing costs and tracking shipment costs. If you partner with a CBD dropshipping company, you can make use of their existing business arrangements with warehousing as well as the packaging on your behalf.

Is CBD dropshipping legal?

First of all, CBD is a controlled substance under United Nations drug control conventions. It is currently legal to dropship CBD in the USA and EU, but not in Canada or Australia.

  • In the USA: cannabis plants were classified into two categories by the government: the hemp plant is less than 0.3 percent THC and the THC that derives from the marijuana plant that has more than 0.3 percent. For extracting CBD purposes, the hemp plant is a more suitable choice as it has a higher concentration of CBD than marijuana. Plus, this category is legal to grow in all 50 states.
  • In Canada: marijuana is legalized here; however, due to the EU stance, it is considered a controlled substance. Consequently, CBD, and products that have CBD in need to follow all of the rules and requirements that apply to cannabis under the Cannabis Act and the regulations. Under the Cannabis Act, they regulate CBD products, including CBD derived from industrial hemp plants and CBD derived from other varieties of cannabis, in a strict way. That’s why CBD is only legal when it is sold in compliance with the Act and its regulations. In this case, you must have a processing license to produce items that have CBD for sale, no matter what the source of CBD is. If you want to manufacture cannabis oil, you must be the federally-licensed sellers of cannabis for medical purposes.
  • In the EU: CBD oil that contains no more than 0.2 percent THC is legal. This will likely be lowered to 0.01 percent in 2021. Also, the THC must not be easily separated from it. Additionally, it is forbidden to have CBD packages labeled with medical claims such as CBD content, manufacturer details, or ingredients. The rules in the EU on industrial hemp cultivation should be harmonized in a productive and efficient hemp market.
  • In Australia: In 2016, the government has legalized cannabis for medical reasons in 2016. They have re-classified CBD from an illegal prohibited drug by prescription only. What is more, CBD is still strongly managed and available to only a limited number of people with a medical prescription.

What are products for CBD dropshipping?

As I have mentioned, there are so many CBD infused products that you can find in the market today. The most common products that you will see in CBD products dropshipping are CBD oil tinctures, CBD edibles such as capsules or soft gels, and CBD topicals such as creams and gels. Here are specific categories that you will find:

  • Edibles: Edible products are parts of a growing sector of the industry. These types can contain baked goods, candies, gummies, and other foods. CBD edibles have covered the scrutiny from the U.S. Food and Drug Administration; however, they are still now popular in products on the market.
  • Topicals: In topicals products, they often contain gels, creams, and sprays and bath bombs for aches and pains. To target a localized region of the body or bath bombs, these items are often located directly on the skin or treat the whole body.
  • Sublingual tinctures: Sublingual tincture type is from CBD oil in a small bottle with a dropper inside. This item is often ingested by placing drops under your tongue and letting the oil being absorbed into your bloodstream.
  • Vape concentrates: For making vape machines purposes, CBD oils and waxes can be used with a specially designed device to vaporize and inhale the CBD item.
  • CBD capsules: This item derives from a gelatin capsule or soft gel. Taking a dose of CBD, capsules would be an extremely fast and convenient way, which are also quicker to use than tinctures and isolates. Users who want to stay clear from edibles or just want to take CBD in a fast familiar form will be love with this type.

Where to find suppliers for CBD dropshipping

Basically, dropshipping CBD products is quite a new industry, then it would be the best solution for you to have a perfect corporative supplier to help you customize your buyer’s shopping experience.

In this section, I would recommend you start your business with Dropified Supplements on Demand plan, an experienced company in the industry. You will not only have to dropship CBD but also can customize all your labels and construct your own brand without having to be concerned a lot in purchasing inventory or minimum orders.

Rules and laws you need to follow

Here are some important rules and laws that you need to know before starting your business. There is a Canadian based company that is designed to serve online retailers around the world – Shopify. This platform feature is perfectly created to help US merchants sell CBD goods online, and even in brick and mortar locations. And of course, it has to be allowed by law.

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In Canada, CBD is believed by most sellers to be a legal product as it does not cause intoxication, and they don’t realize that they are indeed violating the law by selling it. In the UK, buying CBD through PayPal is legal, but US restrictions regulate Paypal’s action. Also, PayPal in the UK still considers CBD as a narcotic, which makes it pretty high-risk for CBD companies that use PayPal as a payment merchant.

Many reports have been conducted that PayPal has frozen the funds and accounts of CBD stores that sell legal items in the UK. All different goods such as CBD vape liquids, capsules, and oil are included.

Unluckily, there is nearly no way to attract the decision, which makes the businesses incapable of accessing the funds they need with a view to continuing operations and cash flow issues that might lead to the closure of some businesses. You should pay attention to this risk as this can make Paypal be an infeasible option for CBD stores.

The sale of CBD worldwide was banned on Amazon and eBay. Meanwhile, Stripe – a credit card processor has allowed CBD businesses to access to credit card processing services in the USA. In 2019, Facebook said it would move its prohibition on some CBD items, which means some ads to promote topical hemp products via the social networking platform can now be published.

Alphabet Inc.’s Google company is still making efforts to end its ban on advertising for cannabidiol products via a test program, which enables you to choose companies in the hemp sub-industry to buy ads on its platform. However, some restrictions still are there.

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Final words

Now that you know more about CBD, the benefit of CBD dropshipping and the laws in different countries. Just keep in mind that everything has its own pros and cons, and so does CBD dropshipping. All of this given information might sound like a complex puzzle at first, but when you strive to learn, it is going to be a smooth process for everyone.

Day by day, there are more and more resources that can support you to run CBD dropshipping business easier than ever before. I believe this article has provided some great advice and knowledge to get started. If you worry about having absolute zero business experience, I believe you still easily make a profit. It might be demanding at times, but it’s more than worth it.

So, I hope you are now satisfied with the question about “What is CBD dropshipping?”, “Is CBD dropshipping legal?” and all the basic things that you had before getting started. Now, it is your turn to decide and start planning for your dropshipping business including a strategic plan, or evaluate opportunities and costs, to make your dream come true. If there is still something on your mind, don’t hesitate to ask us or leave comments below. We are always there!

Can I Dropship CBD?

Drop shipping is the process of outsourcing a product and the shipping process being fulfilled through another company. In other words, your business doesn’t have the physical inventory and you can sell through your website or whichever method you prefer.

Currently, it is legal to dropship CBD in the United States and Europe. The way the drop shipping CBD process works is simple. Once you receive an order you would let the CBD dropship company you are working with help fulfill the order. At Doc Patels, we follow the information provided in the order then we would find the product, package, and fulfill the order.

What are the most common CBD products available for drop shipping?

There are many CBD infused products you can find in the market today. Anything from CBD infused coffee or CBD infused beauty products. Pretty much, you can find CBD that is infused in anything! The most common examples of CBD products you’ll find are CBD oil tinctures, CBD edibles such as capsules or softgels, and CBD topicals such as creams and gels.

How Does Drop Shipping CBD Work?

Drop shipping is a pretty simple process with Doc Patels!

  1. Someone visits your website online and makes a purchase.
  2. You get a notification of this purchase.
  3. Forward the order to your drop shipping partner.
  4. Your Drop shipping partner packages the order.
  5. The package is shipped to your customer on your behalf.

Drop shipping CBD benefits your business in several ways. Drop shipping is a cost effective way you can offer CBD products. Depending on your business objectives and goals you don’t even have to purchase anything up front. Drop shipping also gives your business an opportunity to offer a variety of different products and see what works best for your business model.

Drop Shipping CBD in the United States

Since the CBD industry is still a fairly new and upcoming booming business new rules and regulations come with it. As of June 2019, USPS updated its new mailing standards for products derived from hemp and cannabis.

  • A signed self-certification statement that is subject to the False Statements Act. The statement must be printed on the mailers letterhead and must be signed by the mailer with a text that states “I certify that all information furnished in this letter and supporting documents are accurate, truthful, and complete. I understand that anyone who furnishes false or misleading information or omits information relating to this certification may be subject to criminal and/or civil penalties, including fines or imprisonment.”
  • The CBD or hemp derived products must contain less than 0.3% of THC (tetrahydrocannabinol).

UPS, DHL, and FedEx Guidelines Include:

  • Merchants selling CBD online must comply with the rules and regulations included in the Food, Drug & Cosmetic Act and must follow Federal regulations to ensure the CBD products contain less than 0.3% THC.

Why Drop Ship with Doc Patels

When you use Doc Patels to drop ship your products, you can be sure that all our CBD products comply with all state and Federal rules and regulations. Doc Patels products have passed all microbiological, mycotoxins, pesticides and solvent residue tests which means all of our products are consistent and safe to sell to your customers. Additionally, our CBD products are 0.00% THC or “Non-Detect.”

Partner with a CBD dropship company like Doc Patels that is backed by vetted and licensed healthcare professionals that have been in the CBD industry for over 12 years. Our team of experts make sure all your orders are fulfilled and properly tracked. Offering a CBD drop shipping service like the one we provide gives you an opportunity to give attention to areas of your business that may need more focus. We allow you to save time, shipping, warehousing, and handling which saves you money. We know the obstacles growing a small business and want to eliminate any hurdles you may encounter so you can grow a successful business.