In the wake of the pandemic, there has been an increasing trend in the online sale of products. There is no doubt that consumers are shopping online like never before. So, your Shopify dropshipping business could also do well in the forthcoming months.
But, is dropshipping CBD an excellent thing to do? Is it profitable? Are you allowed to sell CBD on your Shopify dropshipping store? What are the things that you need to know before dropshipping CBD? I have the answers to all these questions and more below.
Before we get into more details of dropshipping CBD, you need to understand what this product is.
What is CBD?
CBD is short for cannabidiol and is one of more than 100 different cannabinoids present today. These are chemical compounds found in the cannabis plant that act on the cannabinoid receptors in the human cells.
They can alter the neurotransmitter releases in the human brain. Also, CBD is a byproduct of both the marijuana and the hemp cannabis plant. However, it doesn't create a "high" effect or intoxication like marijuana, from a different cannabinoid called THC.
If CBD doesn't give you the high, then what is it suitable for, you wonder (well, at least I did!)
What are the uses of CBD? Why do people dropship CBD oil and products?
CBD is purported to be non-psychoactive, which essentially means that it doesn't produce an effect on the human mind or mental processes.
However, I would disagree that research shows that CBD works in tandem with THC and creates an impact (even though mild) on the central nervous system.
However, CBD has demonstrated a profound effect as a therapeutic compound.
Several medical studies have been done on the uses and effects of CBD. A 2017 report by the World Health Organization (WHO) states that CBD provides relief for a variety of debilitating conditions like:
- Alzheimer's disease
- Multiple sclerosis
- Diabetic complications
- Chronic and general pain
- Anxiety and depression
So, CBD is used for a variety of medical conditions and also for cosmetic purposes.
Why is CBD a fast-growing industry in the world?
Leading expert researchers in the eCommerce field analyze that the US's CBD sales will exceed by $20 billion by 2024. I know that sounds like a staggering number, but it is indeed true; the industry is fast catching up!
CBD was one of the top-selling products in 2019 and reported record sales in the US in the last few months! With more and more people looking to sort out mental conditions, I say the CBD industry is for some run now.
So, when the industry is increasing drastically from year to year, why not make some profit out of it by dropshipping CBD?
Is dropshipping CBD profitable for you?
Once the customer base is established, it is sure that you can make a good deal of profit out of your Shopify Dropshipping business.
Marketing and selling this unique product has got a great scope, considering its increasing popularity among the people for medical and cosmetic purposes.
Some of the reasons why dropshipping CBD is profitable are:
- Customer repurchases
Most of the customers that resort to CBD purchases are bound to come back. I say this is one of the best opportunities that you need to bank on! Medical conditions like back pain, epilepsy, migraines, and other pain disorders are recurring and require CBD to be consumed regularly.
There is no harm in selling THC-free CBD oil and products to your targeted consumers if it provides help!
The process of extracting CBD from the hemp plant is affordable. Hemp is cheaper than cannabis and contains more CBD than a cannabis plant would contain THC.
For these reasons, the extraction of CBD is cost-effective, making it also available for almost all around the year. As a result, when working with a genuine supplier, you can dropship CBD at affordable rates.
- Low in weight
CBD oil and related products are more or less light in weight. So, what does this mean to the dropshipping retailer like you? Low shipping costs, of course! This, in turn, will help to increase your profits from the Shopify Dropshipping store.
There is indeed an exceptional demand for CBD products in the dropshipping business, should you decide to dropship it!
But first, I say you must know about the different types of CBD products that are popular among people. Know your customer first in a business.
What are the different CBD products that can be drop-shipped?
People are running headlong over the many varieties of CBD products available now. Here are some of the CBD products that you can consider to dropship from your Shopify Dropshipping store.
- CBD edibles
This is one of the growing sectors in the CBD business. CBD edibles can include candies, gummies, baked goods, and other foods. This variety of CBD goods have undergone much scrutiny from food and drug control groups.
CBD topicals come in the form of gels, creams, sprays, and even bath bombs. These products can be applied directly onto the skin to experience relief from many types of pains and aches.
- Sublingual tinctures
This is CBD oil that comes in a brown bottle with a dropper inside. They are consumed by placing a specific number of drops of the CBD oil under the tongue. The oil is then gradually absorbed into your bloodstream.
- Vape concentrates
Vape machines that use CBD oil and waxes are top-rated now. Nonetheless, you need a specially designed device to vaporize and inhale the CBD product.
- CBD capsules
These come in the form of gelatin or soft gel capsules. I would personally recommend you to dropship CBD capsules as this is found to be more in demand than tinctures and isolates. This is so because many people avoid consuming edibles and consume CBD in a quick, familiar form!
So, thinking of living your dream of running a profitable Shopify Dropshipping business? Then, dropshipping CBD is indeed a good option. But wait, is it genuinely legal? Would you land up in trouble with dropshipping CBD?
Is CBD oil considered legal?
If you are starting in the dropshipping space, I say you give it a thorough thought first! Ideally, you have to know that considering its close association with the infamous marijuana, CBD is banned from usage and sale in many countries.
So, better be safe than sorry and understand what legal complications are involved in drop shipping CBD to your country.
Under the United Nations drug control conventions, CBD is defined as a controlled substance.
However, CBD's sale is now legally allowed in countries like the USA, EU, Canada, and Australia (under strict rules and regulations, of course!). Countries in the rest of the world are still prudent about CBD's sale and consumption among its residents.
Nonetheless, some states tolerate CBD oil in the country, but only under strict directives.
What to know before dropshipping CBD?
Your CBD dropshipping path needs to be utmost honest and dedicated as the legal regulations around this compound's use are under tight scrutiny. Here are some of the things I think you should take care of while dropshipping CBD:
- I suggest you communicate honestly with your CBD customers as well as your suppliers. Because CBD gets confused with THC, you must clear any doubts that customers have about your products. Provide authentic information about the CBD products on your Shopify Dropshipping store.
- Dropshipping CBD is a relatively new and potential industry. Therefore, you must have a perfect collaborative partner to enhance and customize your buyer's shopping experience.
- A dropshipping business allows you to start transactions with very little money in hand. However, you might have to check with your CBD supplier when you have to provide the payment installments, as some suppliers require you to make payment before delivery.
- Choose between manual and automatic dropshipping path with CBD suppliers. Manual dropshipping is the process in which customers place an order for the CBD products on your Shopify Dropshipping store. Then, you have to pay for each order with the supplier to deliver it to the client.
- In automatic dropshipping, the supplier works in full integration with your eCommerce software. All the orders placed by the customers on your Shopify Dropshipping store get processed automatically at the supplier's backend.
- The negative stigma associated with cannabis is gradually dissipating. As a result, you can find more scope in finding potential customers as they know the medicinal and cosmetic benefits of this specific substance. From face creams to hair softeners, CBD could outrightly be the next big thing very soon!
- Carefully review and submit all legal attestation required to sell hemp and hemp-derived products on Shopify; or on any eCommerce selling platform for that matter.
- Always make sure to abide by the country's federal law and regulations or state that you live.
FAQs on CBD dropshipping
No information on the selling and dropshipping of CBD oil and products would be enough, I say. So, here are a few more pointers that should help you!
- What kind of CBD am I supposed to dropship and sell online?
There are mainly three types of CBD – full-spectrum, broad-spectrum, and isolate extracts. You have to determine the type of CBD that customers are looking for. The variation is influenced by the frequency of use, effects, dosage, and possible side effects. So, always check with the buyer as to what their specific need is.
- Where should I dropship CBD from?
It would be best to remember that authentic CBD products will still contain high amounts of CBD. This will determine the effect it will produce on the user. The primary source of pure CBD is from the hemp plant. However, full and broad-spectrum extracts may come from other cannabis plants as well.
- Can my CBD product contain THC in it?
The psychoactive effects of THC are undesired by many customers who are looking for genuine CBD products. So, I would recommend that you be particularly careful about the THC amount in the CBD products. Ensure that you read the label and check with the supplier that the THC content is low (ideally less than 1%) in your CBD products.
However, some customers require products that have the combined effects of all components, including THC. In this case, check the label and with the supplier what kind and percentage of other cannabinoids are present in the product. Also, it must be compliant with your country's rules and regulations.
- How do I check the legitimacy of my CBD dropshipping supplier?
Always check (and double-check!) the information that your CBD dropshipping supplier provides you with. Verify information on their extraction process and the cannabinoid concentration in their oil and products.
You can also cross-check the information they provide with other CBD suppliers and generic information on the internet.
The prices of CBD oil and related products are relatively high. The CBD oil prices are due to the costly and complicated procedures in extraction and filtration, which is a good thing for the dropshipping retailer like you.
You can charge an adequate margin from the buyers as they are equally aware of today's market prices. If you are dropshipping from a genuine supplier and are accurate to maintain the legalities in selling CBD products, then there is a huge market to tap into!