CBD, the non-psychotic cannabinoid found in all the plants of the cannabis species has now become one of the strongest economy supporters. Expected to be a billion-dollar market by 2020, the hemp industry is climbing the ladder of success with more and more investors looking to make a quick buck while the reigns are still in the hands of the producers.
While some are investing in the major leagues with CBD manufacturers, there are many of your likes who are interested in setting up an online CBD store. I want to stop you right there, right now! Before you get a grip on your ideation, there are three things you must know and make peace with:
- Quality CBD oils are expensive, so there?ll be more money involved
- There?ll always be a certain risk involved when you choose CBD products for your retail business
- You must have a good e-commerce solution provider by your side, digital selling is not as easy as you think
Okay, still interested in setting up an e-commerce store for CBD products? Cool! If you have the will to go ahead with your decision after hearing all the above facts (which are pretty scary), then, believe me, you have thought it through and may be able to handle the hurdles quite gracefully.
Having the sheer will is the first, unnamed step of setting up an online CBD store! All the steps following that are either legal or business related for which you will have to visit lawyers, banks, merchant account providers, e-commerce experts, a good CBD manufacturer, etc. to start rolling the dices! So let?s see how to set-up a CBD e-commerce store, step-by-step!
Step-By-Step Guide To Run An Online CBD Store Successfully
- Make Your Goal Legal And On-Paper- Legalize Your Business
Venturing into CBD industry is not something you would want to do all by yourself. The investments are huge and the risks are even higher increasing the liability. It is highly advised to set-up an LLC rather than becoming a sole proprietor of the online business. Giving out your social security number for registering the business is equally risky. Consult your tax accountants and lawyers before registering your business with the state and bear the minimum liability of the online business. LLC is what most people prefer in the industry!
- Get An Identification To Your E-business- Get A Tax ID
After getting your company on paper, it is essential to have a Tax ID for your business. What is a Tax ID? It is a unique 9-digit number that identifies your business to the government. Tax Id is also referred as EIN (Employee Identification Number) and you will need this number as your business will have employees and is an LLC. Both these conditions come under the requisites for having a Tax ID or EIN. So unless you don?t want the government to shut down your online business claiming to be unregistered, get a tax ID and file all the paperwork following the state laws of CBD.
- Sadly, Normal Merchant Accounts Won?t Do- Go For High-Risk Accounts
If it would have been any other business, banks won?t have had any issue in opening a merchant account for your business. But it?s not just any business, it involves CBD, a high-risk business. Normal banks wouldn?t show interest in handling your money as the laws surrounding CBD and hemp are unpredictable making the investments insecure. You will have to seek high-risk merchant account providers who are comfortable with your line of business.
- Congratulations, If You Can Code!- Or Else, Hire A Dependable E-commerce Developer
Although this could be a simultaneous step, because there can be issues in registering businesses involving hemp and CBD, it could be an unsure investment. If you are a coder and have complete knowledge on creating an ecommerce store, nothing could be better but if not, it?s time you have a company?s name in hand who is going to handle your technical reigns.
Always go for experienced site-builders because CBD already involves a lot of risks and as a business owner, you don?t have the liberty to experiment, at least not in this niche. Make sure your store has a feasible design with appealing graphics, catching content, and great site-map.
- Dedicated Or Miscellaneous Seller?- In Any Case, Find Saleable CBD Products
What?s the agenda for your online store? Do you want to provide your users with a range of brands or range of products from the same brand? Either way, you will have to seek some of the best-in-range CBD manufacturers who produce their own CBD oil using the CO2 extraction technique.
This is extremely important as the products made using other extraction technique might not be as effective which could ruin your store?s reputation. Companies like Green Roads have wholesale discounts for entrepreneurs and wholesalers wanting to put their products on the shelf. Choose your products carefully and always offer some things that are unavailable elsewhere.
- Staffing Can Kill Or Make Your Business- Do It Wisely!
Employees are the backbone of any company! This remains the truth for every business and, trust me, they have the potency to thrust your business to the top if chosen aptly and if not, you might not see the light of the day even after doing everything you could. Hire only the ones who believe in the power of CBD. This is crucial because otherwise, they?ll make half-hearted attempts which could affect your business.
To prove my point I will ask you to imagine one of your employees saying, ?I just work there, I am neither interested in CBD and don?t know what?s the hullabaloo around CBD!?.
- SEO And Digital Marketing Are The Key- Invest In Good Strategies
Any business that is on the network requires a good relationship with the search engines. Yes, you have to strategize your e-commerce site in a way that it has a good rapport with Google, Safari, and other search engines so that they list your site on the first 5 pages.
Invest in good Search Engine Optimization Executives and digital marketers to get your store noticed by both, the audience and the search engines. There is a lot of competition even in this recently bloomed CBD business, so this is the only way to stand out amongst your adversaries on social media is to try unique approaches to engage your audience.