Sales of CBD-related products are tipped to reach $3 billion. Here’s how to start a CBD dropshipping business to profit on that spend. Join Charlotte's Web CBD Dropshipping Program. Promote your favorite Charlotte's Web products on your eCommerce website without purchasing inventory.
CBD Dropshipping in 2022: How to Cash in Cannabis-Derived Products
Cannabidiol (CBD) products have become super popular over the past few years, with ecommerce sales of CBD reaching $3 billion in 2022 alone.
Some 44% of regular users spend between $20 and $80 per month on CBD products, making CBD dropshipping a lucrative business idea for entrepreneurs looking to start a business on a budget. You don’t need to invest money into product development or inventory—simply sell an existing CBD product at a higher price and have your dropshipping service handle fulfillment.
But dropshipping CBD is somewhat different to selling other products. A scattered supplier base and mixed-quality products make CBD dropshipping a high-risk (though also high-return) business.
Do it right, though, and dropshipping oil and other hemp-derived CBD products through your Shopify store can be a lucrative niche. Here’s how to get started.
- What is CBD dropshipping?
- What makes dropshipping CBD different from dropshipping other products?
- How to get started with CBD dropshipping
What is CBD dropshipping?
CBD dropshipping is the process of selling products containing hemp-derived cannabidiol through an online store.
The difference between a traditional CBD company and dropshipping CBD is that you don’t need to hold inventory. You’ll work with a third-party dropshipping supplier who picks, packs, and fulfills a customer’s order when placed through your ecommerce store.
What makes dropshipping CBD different from dropshipping other products?
Because CBD products contain cannabis-related compounds, the dropshipping process is slightly different from other products.
CBD is a regulated product, which makes dropshipping it more complex than dropshipping other items. Laws for selling hemp-derived products vary widely between countries, and even between states in the US.
Although CBD products don’t contain THC, some states have laws that prevent people under the age of 18 or 21 from using or buying CBD products. You’ll need to verify that people purchasing CBD products through your dropshipping store meet the age requirements for that state, like CBD Farmers Collective does with a splash page.
More variation in suppliers
According to Thys du Plooy, owner and founder of Our CBD Pantry, dropshipping lets brands offer a wider range of products.
“This also enables me to find the truly outstanding products in a category and focus on these rather than having to offer products that aren’t necessarily as good but are convenient due to supplier relationships,” Thys says.
The CBD industry also encompasses a wide variety of hemp products to dropship, including:
- Supplements, capsules, and pills
- CBD flowers
- CBD for dogs and pets
- CBD oils for vaping
- CBD gummies and edibles
- Creams and lotions
- Bath bombs
- Ointments, tinctures, and topicals
- Sprays and atomizers
That variety comes with the cost of a wide range of quality. It can be more difficult to find a reputable supplier selling a high-quality product at a price you’ll still make profit on.
Goodleaf sells a range of CBD products through its Shopify store. Goodleaf
Speaking of profit, CBD dropshipping can be highly profitable when done right, with CBD products selling for a premium price. The greater the margin between the product price and your resale price, the more money you’ll make as a CBD dropshipper.
How to get started with CBD dropshipping
Despite the rules and regulations around dropshipping hemp-derived products, it’s an easy way to make money online without a cash investment upfront. Here’s how to start a CBD dropshipping program.
1. Choose a CBD dropshipping supplier
The quality of your dropshipping supplier arguably plays the largest role in the success of your new business. After all, shoppers won’t know that you’re not physically fulfilling orders. Any errors that your dropshipping company makes are your responsibility.
When searching for suppliers, ask for certification that proves its products are safe and regulated. The Food and Drug Administration (FDA) reports that some companies are using CBD “in ways that violate the Federal Food, Drug and Cosmetic Act (FD&C Act) and that may put the health and safety of consumers at risk.” Protect your business by choosing a regulated supplier.
Sunsoil shows the lab results of its CBD products on its online store. Sunsoil
Online shoppers want free, fast delivery—so much so that 32% avoid making purchases that don’t meet their shipping requirements. Choose a dropshipping partner that leaves minimal time between receiving an order and marking it as shipped.
Need help finding a CBD dropshipping supplier? Popular options include:
2. Set up your online store
Once you’ve found your supplier, create an online store for customers to place orders. Shopify is perfect for hosting your CBD online store since it offers:
- Low start-up costs (just $29 per month for all the features you’ll need)
- Reliable payment gateways that accept debit and credit card payment for CBD products
- Turnkey health and beauty website themes
If you’re based in the US, you’ll need to submit an attestation to Shopify for the sale of hemp and hemp-derived products. This proves you’re using a payment processor that accepts payments for CBD-related products.
3. Add CBD products to your store
Once you’ve created an ecommerce website for your CBD dropshipping business, use conversion rate optimization (CRO) best practices to increase the percentage of people that buy. That includes:
- High-quality images to help online shoppers who can’t sample the product
- Product descriptions thatfocus on the health benefits, from anxiety to pain relief, of each CBD product you’re selling
- Customer reviews and testimonials, which are used by 93% of shoppers prior to making an online purchase
- Trust signals, such as money-back guarantees or logos of any third-party certifications products may have, to build the trust an online shopper needs to feel confident in their purchase
- Welcome bars to announce special promotions or shipping deals, such as “spend $50 to qualify for free shipping” (This tactic is proven to increase average order value, and therefore, profits.)
4. Promote your products
To start making money as a CBD dropshipper, customers need to know that your online store exists. Identify your target customer and run marketing campaigns to reach them using the following tactics:
- Content marketing. Discover the keywords your target customer is searching for, such as “best CBD oils,” and produce an optimized piece of content that appears in their search engine results page.
- Email marketing. Encourage website visitors to join your email list with coupon codes or exclusive content. It’ll give you a direct line of communication with customers—even if they haven’t purchased yet.
- Influencer marketing. As your CBD store begins to grow, identify influencers that your target audience listens to. Pay a small fee to have the influencer promote your products to their fan base. This builds brand recognition and sales, especially considering 62% of shoppers consider influencer recommendations more trustworthy than celebrity endorsements.
Owned marketing channels like email are best since you control your relationship and communication with customers. But if you have some cash to invest, consider running PPC ads on Facebook, Instagram, or Google. Advanced targeting features across each platform allow you to reach your target market from $5 per day.
Note that some advertising platforms, including Meta, restrict how hemp-derived products can be advertised across its social media networks. You may need to edit your campaign messaging to meet its advertising criteria.
There’s no need to fear CBD dropshipping
While regulations around hemp-derived products are stricter than others, CBD users spend lots of money on their favorite products. Become a CBD dropshipper and you’ll profit on that existing spend without manufacturing, storing, or fulfilling your own orders.
✨ Get started dropshipping CBD today
Shopify makes it easy to dropship CBD products. Find suppliers through dropshipping apps, accept payments, and run marketing campaigns to acquire new customers—all within one platform.
CBD dropshipping FAQ
Can you dropship CBD?
You can dropship CBD products through your own online store. Popular dropshipped CBD products include hemp oil, supplements, lotions, and skin care items.
Is dropshipping CBD profitable?
CBD dropshipping can be a profitable business for first-time entrepreneurs. To maximize your earning potential, choose a high-quality product at a low price. Markup the same product on your online store with a high profit margin and net the difference.
How do you price CBD products for dropshipping?
When pricing CBD products, calculate the total costs of buying and selling the product, including supplier fees and shipping costs. Research the sale price of comparable CBD products. Price yours competitively while covering the cost of sale.
Does Shopify allow the sale of CBD products?
Yes, Shopify allows merchants to sell CBD products through their own online store. You’ll need to sign an attestation and make sure you’re using the right payment provider.
CBD Oil Dropshipping
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Join the Charlotte’s Web CBD Dropshipping Program
Read through the benefits to your business and learn how to sign up below.
No Inventory And Low Startup Cost
Promote your favorite Charlotte’s Web products on your eCommerce website without purchasing inventory. You make the sale, we receive the order, and then our fulfillment team ships directly from our warehouse to your customer.
Strong Brand Recognition
Charlotte’s Web is the number one search branded on Google and is the leader in the CBD industry in terms of total market share. People recognize our brand for the quality, safety, and premium genetics we offer in our products.
With no inventory on site or warehouse team to manage the opportunity available to grow your eCommerce store has never been greater. Our expert warehouse team will scale with your business and support your operational needs.
You are in control. Easily track your orders, connect your store, and place manual orders through our drop shipping portal.
Dropshipping Program Rules
As a leader in the CBD industry we hold all of our dropshippers to the same standards we hold ourselves. Please download and review our Online Only Retail Welcome Guide before applying.
CBD Dropshipping FAQ’s
Dropshipping is one of the most popular ways to build an eCommerce store. With no need to stock inventory and manage product shipments, you can focus on marketing and building up an audience for your store. This is the most affordable ways to launch a new eCommerce website as you are only billed for the products that you sell.
How Does CBD Dropshipping Work?
Does Charlotte’s Web Create Dropshipping Websites?
No, you would have to create the website, but our team is happy to point you in the right direction.
What Products are Offered Through Dropshipping?
What are the requirements to join?
- Have a website
- Have a shopping cart compatible with our dropshipping management system (coming soon)
- Have an approved CBD merchant processor
If you meet all of these requirements you are ready to join the program. Of course, if you have questions please reach out to our team as we are happy to help.
Interested in our CBD Dropshipping program?
Email us directly at [email protected] so we can answer your questions and get you added to our waiting list.
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* These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
* These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease. * ⚠️ Must be 21 years of age or older to purchase full-spectrum hemp-derived products (excluding THC-free products) in Louisiana, Oregon, Minnesota, Rhode Island or Virginia. We comply with this and users from LA, OR, MN, RI and VA will have to prove verification in checkout starting October 1st of 2022.