Ecommerce alone creates the opportunity to make money in nearly any industry with little to no experience. Combine that with the growing trends and newly passed laws on cannabidiol (CBD), and your potential is nearly limitless, as pointed out in a recent article on Ecommerce business trends. Indeed some preparation is always needed when entering a new business, but let’s start with an analysis of market news about these mega trends.
Trend enablers in the US:
Positive changes in the law: Not only has the popularity of CBD skyrocketed in the US and other countries, but the passing of the new legislation, namely the “Farm Bill H.R. 2” aka the “Agriculture Improvement Act of 2018”, has brought attention and a huge spike in CBD sales.
Supported by more research: Furthermore, CBD research findings are out and even Doctors talk about this. Numerous studies done by reputable universities have even shown that CBD has positive health impacts to both humans and animals. What does this all create? A huge opportunity in e-commerce and the CBD market.
Supported by the industry: Eddie Mamane, the CEO of Terravidaonline.com said the following: “As CBD producers and wholesalers, we have made it easy for any type of e-commerce business to tap into our market. Through a combination of white-labelling, dropshipping and affiliate opportunities, we lowered the barrier to entry and created a huge opportunity for anyone to start a business”.
Expand here to see search demand analysis
A number of illnesses benefit from CBD, according to research. The search statistics on this, shows how strong demand is for the product, especially once more Doctors adopt this as a recommended option.
Eye Opening Trends in E-Commerce & The CBD Market
To paint you a better picture of the potential opportunities this creates, here are three major trends you can’t ignore in the CBD market:
1. Prices Are Dropping – and Rising!
The market is witnessing a divergence in price range. The high-end is going even higher with more luxury CBD brands launching, whereas the low-end of poor quality is going lower as cheap Asian products are flooding the market. One might think that because the demand is so high for CBD, prices would rise. While this is absolutely correct, the market has nearly passed this phase. When a market rises in demand, businesses with sufficient capital to get into the market early make a profit.
As the demand increases and so does the supply, naturally the prices to purchase CBD at wholesale costs begin to drop, allowing smaller businesses and entrepreneurs to start taking advantage of the booming market. Yet one Doctor in Florida warned consumers against cheap CBD, in particularly against cheap Chinese imports that may have been contaminated by pesticides. In an interview for a Jpost article, Dr. Deepa Verma said: “It is unclear where the products are derived from and they may contain toxic and harmful chemicals and substances which could damage one’s health or exacerbate already existing medical conditions. Patients and clients must be extremely cautious and prudent when looking to purchase CBD products whether it be oil, capsules, vape pens, edibles, skin care or even products for their pets”.
Only by selling high-end, high quality CBD with which consumers will notice a difference in their medical conditions, can any CBD business expect to see returning customers and recurring revenue.
2. CBD As Add-On Ingredients to Already Popular Products
It’s no question that coffee, beer and alcohol are already popular markets. Companies are starting to add CBD as an add-on ingredient to their already popular products, giving the already popular products a spike in sales and increased awareness.
What does this mean? As CBD continues to grow and reach new audiences, byproducts will naturally be made creating new products and byproducts. Add CBD to your favorite drink, your favorite food, you name it and who knows, you may just have the next big trend in CBD.
It is not a farfetched idea that Coca-cola, Walmart and Starbucks may eventually enter the CBD market. Analysts believe it is only a matter of time before big brands will pass the tipping point of resistance.
3. Growing Credibility to Positive Side Effects
According to WebMD, a popular medical site for those seeking advice on nearly anything health related, studies done by The WHO’s Expert Committee on Drug Dependence show multiple positive health results.
First off, the committee states that “in humans, CBD exhibits no effects indicative of any abuse or dependence potential.” In other words, they saw no negative side effects and no indications of addiction.
Furthermore, they concluded that CBD “might be able to treat epilepsy…Alzheimer’s disease, Parkinson’s, anxiety, depression, and other maladies. CBD may ease inflammation, provide antioxidants, and relieve pain.”
What Does This Mean for E-Commerce?
It’s no question that companies like Amazon, eBay, Jet.com, Overstock.com and other popular ecommerce companies have revolutionized the ecommerce industry. Consumers are going online more than they ever have before to do their shopping.
Online sales year after year get bigger and bigger, especially during major holidays like Christmas, Halloween, Thanksgiving and Valentine’s day. You no longer have to shop in person at the grocery store, you can go online, order your groceries and pick them up at your next convenience. Furthermore, local retail “brick n’ mortar” stores are closing due to the loss of sales from online ecommerce companies.
Combine the rise in CBD with the popularity of ecommerce and your potential to make money and grow a thriving business is infinite. Whereas the winning products will be “made in USA”, where quality assurance is more secure, expect affiliate marketers and site owners globally to tap into this. Already there is several hundred teams throughout India and the Philippines working around the clock to push CBD.
How to Take Advantage of Ecommerce & CBD Growing Trends
All this is great, but how is one to benefit from the growing trends of CBD and ecommerce sales? It’s actually quite easier than you think. Whether you’re an entrepreneur, already established business owner, or a full-time parent looking to make some extra money on the side, profiting from an ecommerce store selling popular CBD products is easier than ever before.
There are several ways to profit from the upward trends discussed here. CBD Wholesalers like Terravidaonline.com are making it easy for entrepreneurs to get involved. In reality there are more options, but these are the most obvious “go to market” tactics to use:
- Opening an ecommerce website
- Become a CBD affiliate marketer
- Sell popular CBD products on Amazon
- Purchase an existing CBD ecommerce website
Each of the above 4 strategies to profiting from CBD and ecommerce trends can be done by anyone with access to a computer and the internet. Here’s how…
Opening an ecommerce website
With the help of popular companies like Shopify and BigCommerce, it no longer takes knowing how to code to build an ecommerce website. Shopify and BigCommerce, among many others, are ecommerce website builders that provide you with a website template of your choice, payment services, website hosting and even how-to’s on starting a new ecommerce store.
Once you’ve set up your ecommerce store, your next step is sourcing your CBD product from a trusted wholesale company. Using wholesale directories like Salehoo allow you to search trusted wholesalers that sell the products you wish to list on your website.
When sourcing your CBD, there are a few cautions to keep in mind. It has been advised by doctors to be cautions of where you source your CBD, and to ensure that they are trustworthy companies with third party partnerships that provide a deep analysis of the product. These third-party labs will analyze whether there are any harmful toxins or ingredients, and test how pure the product is.
To take advantage of this growing market trend, suffice it to say that you want your reputation to be a trusted one from the beginning, otherwise you may find your store to be a dead-end venture.
Once you’ve connected with a trusted wholesale company that sells your CBD products, you can now list your products for sale in one of two forms:
- Purchase inventory in bulk from the wholesale company
- Sell products via drop shipping
Purchasing inventory in bulk requires a bit of capital up front, and prices are based on up front quantity purchased. The idea is to purchase it at a low enough wholesale price and be able to resell that product at a retail price significantly higher than the cost of operating your ecommerce store.
Drop shipping is a method used if you don’t want to purchase inventory up front, but profit margins are slightly smaller. By listing a product on your website and attracting visitors to your store, naturally purchases will come in overtime as you build website trust and credibility.
When a sale comes in, you simply pass on that order to your wholesale company who then packages it and ships it out to your customer for you. For example, the customer may purchase CBD oil from you for $50. They pay you $50, and you then pass on the order to your wholesale company who charges you $30 for the sale. You keep the difference of $20.
Become a CBD affiliate marketer
Affiliate marketing is a popular method of making money online. An affiliate marketer will promote products to their social media, blog, website or email list and gets paid a small commission when a sale is made.
The process to becoming an affiliate marketer for CBD is quite simple. First you need to have an audience to sell to. This is most often done by using social media platforms, creating a blog or website, growing an email list and partnering with already popular influencers.
Most companies have an affiliate program that you can sign up to, allowing you to obtain unique URL links to promote their products. When people click on these product links, you will be credited for the sale and make a commission. Perhaps the biggest affiliate marketing platform is the Amazon Affiliate Program, and it’s free to join and start promoting your favorite CBD products within minutes!
Sell CBD products on Amazon
Have you ever noticed when you search your favorite product on Amazon, there are multiple sellers with different price points? That’s because there are multiple entrepreneurs and businesses who are connected to wholesalers who distribute that particular product. These entrepreneurs list as a seller on Amazon and get access to the huge market offered only through Amazon.
To begin this process, you need to apply as an Amazon seller program. There are two options when doing this. You can open an Amazon Seller account as an individual or as a professional. The only difference is in the way Amazon takes a cut of the sale. You should apply as a professional if you plan to sell more than 40 products per month, and as an individual if you plan to sell less than 40 products per month.
The professional seller account costs $39.99 per month, and the individual account charges you $1 per sale made. If you’re just getting started, you can begin with the individual and upgrade as your CBD business grows.
Purchase an existing CBD online business
While the other three methods don’t take much capital up front, if any, this method requires you have some money in the bank. By purchasing a popular CBD online business, you can benefit from the lifelong stream of profits it will generate.
This can be done by purchasing an ecommerce website, an affiliate marketing website, a blog, or even an Amazon storefront. The purchase price will depend on the financial strength of the business and is normally a multiple of the annual revenue the business makes.
The benefits of purchasing an existing profitable online CBD business lie in saving time building a brand name, reputation and client base. All the hard work has been done, and all you need to do is maintain and grow the business!
When Is the Best Time to Plant A Tree..?
Have you ever heard the saying/question: “When is the best time to plant a tree? Yesterday. When is the next best time? Today!”
The rising trends of both ecommerce and CBD create one of the most unique opportunities that may ever be presented to us. Whether you decide to act on the opportunity or not is entirely up to you and may be the path to your prosperous and abundant future.