If there is a time to jump into the CBD retail business, it is now! The recent events that went about legalising CBD in the US, has opened up plenty of business opportunities. If you are quick on your feet, you can haul back after hefty cash grab. After all, the US CBD market skyrocketed with the passing of the Farm Bill in 2018. The market grew an unchartered 700% in the year 2019, and it is quite evident that the number in terms of CBD sales could hit $800 million. By the year 2025, it could reach an estimated $5 billion.
Who wouldn’t want a piece of this money pie? The figures have resulted in plenty of retailers and suppliers sprouting up all over the globe.
As profitable as the internet may seem to tell you, setting up and successfully running a CBD retail store can be a handful. It is a continuous process of refining and betterment to make sure that you stay ahead of the competition. The work never really stops.
We know of all the things that CBD use can do for its users, and the extensive CBD benefits list. But let us get to the meat of the issue-let us talk about what it takes to be a CBD retailer.
Setting The Groundwork
Understanding Your Customer’s Needs
Just as with any business, you need to know what you will be selling and to whom. You can fit in the rest of the blocks as you go along. But understanding who your target audience is, and what they need is the way to start off. Try to figure out what makes your product unique and why people should buy yours and not your next-door competitor’s.
Product diversity is another aspect that you should focus on. The versatility of CBD enables it to be put in most organic wellness products-from bath bombs to gummies.
The various forms that CBD extract can be marketed as include:
- Pure CBD oil
- Broad-spectrum CBD
- Full-spectrum CBD
The more options you give your customers to choose from, the more easily marketable your business can be. Do remember to never end up diluting the quality of your CBD product under the ruse of diversifying. Quality should be given prime importance.
Who Should I Sell To?
Find your target audience by means of market research. Perform surveys, and grow your database of potential clients. Embark on email marketing and more extensive and targeted forms of marketing on social media to find the ones who are most probable in seeing worth in your products.
Nevertheless, the two biggest consumer chunks would have to be the “tensed millennials” who are in the early 20s to mid-30s range, and those who are of higher age groups-boomers that are in the age group of 60 and plus. The former use it to address their insomnia and anxiety, while the latter generally use it for better pain and inflammation management against chronic conditions.
Know Where To Sell In The US
The passing of the Farm Bill (2018) meant that hemp and its derivatives were no longer illegal to produce and sell to the masses. Hemp was regarded just as legal as rice. As of May 2020, as many as 33 states have declared medical marijuana to be legal and the 17 other states have passed laws that deemed hemp derived CBD legal as well- with minimal THC (tetrahydrocannabinol) concentration. THC is the substance that creates intoxication when using cannabis. Hemp has trace amounts of THC in it.
Be sure to follow state laws and find the places that you can legally market and sell your CBD products. Research deeply and make sure you are completely compliant and only sell within shipping zones.
Marketing Your CBD Products
The digital tools available for marketing are vast. Here are some of the marketing strategies that will help you stand out from the crowd:
Make use of a combination of both SEO and SEM practices to boost the online visibility of your CBD business. Make sure to put out quality content that brings value to anyone who utilizes it. This will help in increasing traffic and let the search guide interested parties to your websites.
Keywords & Blogs
Keyword optimisation comes under SEO, but must be paid special attention to. Do keyword research on what is commonly searched by people online. Utilise them in your blogs and product description to help customers ‘see’ you. CBD blogs are a great way to plant backlinks on other websites and publications. Talk to others and build your network of business contacts.
This is hot off the press. Personalities on social media have an active audience set in place. Partnering with influencers is a great way to drive traffic to your website. After all, a recent poll did say that people were 87% more likely to check out a product that their favorite influencers mention or promote.
The Final Note
Make sure to put your heart and soul to the venture and research heavily on how you can create a positive impact. The rest will fall in place, gradually.