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CBD Dropshipping in 2022



CBD sales have reached $3B in eCommerce sales alone so far this year. This product category is here to stay, with users spending between $20 to $80 per month on the products. The demand is very strong and is a reliable source of revenue month after month. It is a higher-risk product, but the returns are rewarding. So what does it take to be a Dropshipper in this product category? We'll explore below.


CBD Seller vs CBD Dropshipper


We have previously covered in another blog the CBD Seller and what is involved in selling CBD products here. The main difference is who is holding the inventory, and who is processing the orders captured in the Shopify Store. As a Dropshipper, you have your store linked to the supplier, and they are processing your orders received by your store, and updating your orders when they ship out. The inventory is supplied by your dropshipping partner, so your focus is on your Shopify CBD store and its marketing.


For more information on Shopify CBD and Hemp: https://help.shopify.com/en/manual/your-account/legal/hemp


Shopify CBD selling: https://www.shopify.com/sell/cbd


Once a store is created, you will need to fill out the following form for the attestation of the CBD product (Hemp and Hemp-derived). https://www.shopify.com/admin/cbd/attestation


Dropshipping CBD vs other products


Your online store has to account for the Hemp related ingredients that are regulated at federal and state levels. Although CBD does not contain THC, there are still laws that restrict the access or purchase of CBD products by age limits. A splash page will need to be in effect to come up on the site when the IP address is detected from that state. This applies to all eCommerce platforms and all CBD-related product lines.


Variation of products and suppliers


Dropshipping allows brands to offer a wider variety of products through several suppliers. While there are different methods of ingesting CBD products, the strength and creative application of the CBD elements have widened the spectrum of targeting different audiences and their needs. It isn't just offering CBD extract and doing a bit of credit card processing, you have to get into the spaces where CBD can be applied without side effects. The only way to approach dropshipping CBD effectively is by usage model and having user-generated content (UGC) coming back to help others see its effects.


Managing which product and which supplier will have the more popular products requires some research, as well as understanding what pricing will be involved. The product mix might require 2-3 CBD and Hemp processing suppliers to cover the portfolio you are looking to offer. What you "think" people want, vs. what they are looking for might be different, so research is needed to link the particular needs, budgets, and frequency of purchase to be applied to your business model.


Keep in mind not all payment processors are equal when it comes to CBD-based products, these are the 3 payment gateways that will allow for CBD products and the risks associated with them.

Typical CBD-based products


This is what you can expect in CBD-based products and online store offerings that the food and drug administration has approved:

  • Supplement capsules and pills

  • CBD Oils for vaping

  • Creams and lotions

  • Bath bombs

  • CBD gummy bears and edibles

  • Concentrates

  • Sprays and atomizers

  • CBD for dogs and pets

  • Ointments and tinctures and topicals

  • CBD flowers

You can easily use a search engine to uncover what can be used and how it can be applied when it comes to CBD. If it is FDA approved, and a credit card processing company allows for it, then your eCommerce software can transact it. All you have to do is use a website builder in your Shopify store to get your store running and link up to your Dropshipper.

Source: Shopify


Tips on how to get started with CBD Dropshipping


With knowledge of selling in a digital world, setting up a Shopify store whereas a store owner will look to having a custom domain, enjoy the cloud web hosting, using an Online Store free theme like Dawn, and applying the funnel and eCommerce features to entice a customer to convert. Shopify includes email marketing and it is worth considering a promotional plan in how you will use your digital marketing to the audience you have identified. Here are some tips to consider:

  • The quality of CBD Dropshipping suppliers is a key component and has to be reliable.

  • All mistakes in delivering and fulfilling an order are your responsibility since customers don't know you are outsourcing the fulfillment.

  • Certification of safety and regulation has to be produced by the supplier.

  • FDA-regulated supplier is key since there are suppliers that push the limits and infringe on the FDA regulations.

  • 32% avoid making purchases that do not meet the "fee fast shipping" requirement and a minimal time between an order placed and "marked as shipped". Customers want to have reliability and speed when it comes to their CBD products.

Popular Dropshipping suppliers


Suppliers are popular and reputable, and customers have confirmed their satisfaction with their portfolio. Confidence using a Dropshipper has grown into a very mature industry and should be considered as a way forward.

  • Smokedrop

  • Spocket

  • Absolute Nature CBD

  • TigerOne

  • Charlotte's Web

Note


As always, some research on the local laws is required, as well as checking with your legal counsel that everything is in order when it comes to your products (ensuring that the full product mix is covered), all the way through to your attestation and payment gateway declarations. No matter the number of products, you have to justify each and every one to ensure they all comply. CBD oil is in high demand, especially in the aging population, and has to be restricted to the USA only as exporting would be subject to additional legal requirements.

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