Over the past 5 years, we have seen huge growth in the interest of CBD. Cannabidiol, more commonly referred to as CBD, is a naturally occurring compound found in the marijuana plant. Frequent users of CBD oil claim many benefits, including help with chronic pain, anxiety, inflammation, and depression. Since the passing of the 2018 Farm Bill, CBD oil derived from Industrial Hemp is now legal to ship CBD to all 50 states. This has opened a huge opportunity for ecommerce businesses, specifically those operating within the natural wellness or cosmetics/skincare space.
CBD’s rise in popularity is partially caused by many seeking an alternative option to pharmaceutical drugs. The emergence of so many new CBD products has created an incredibly saturated market that is making it increasingly difficult for new brands and products to gain traction. We have seen CBD brands succeed by doing the little things right and by partnering with a trusted fulfillment partner to help them execute a well-planned strategy.
“CBD’s popularity has blown everyone in the industry away. The medical uses were clear years ago, but we had no idea that there would be such a market for naturopathic use” – Carl Powers, Analyst @ Dauntless Cannabis Advisory.
Here are 3 ways to really make your CBD brand stand out from the rest!
Not all CBD is created equal or even legal. In order for your CBD oil to be shipped across state lines, it is important to find a manufacturer who specializes in industrial hemp-derived CBD, so your business can be fully covered under the Farm Bill. Once you’ve found a legal manufacturer, it is important to know the extraction process used to harvest your CBD. Most high-quality CBD is harvested using CO2 extraction.
Supercritical CO2 extraction requires expensive equipment, more complex refinement process and production expertise, but it ensures that CBD oil maintains its purity through the entire process. Another important aspect when dealing with a manufacturer will be third party testing, which should be provided to you before purchase. These testing results can be shared with your customers to give an extremely transparent view into your product ingredients.
Who would have thought 20 years ago that natural grocery store aisles would be filled with cannabis products, but that is the reality today! CBD can be found in a wide variety of products from the normal; creams, oils, foods, drinks – to more bizarre products like mascara and hair pomade. This results in a product overload for the consumer and a difficult path to success for your brand.
One way to stick out in a sea of competitors is with eye-catching custom packaging that creates a more luxurious buying experience. Most customers will be first time buyers and high-quality custom packaging will provide relief from the buyer anxiety around selecting a product. Those who are not familiar with CBD, may be turned off by it’s molecular proximity to marijuana, but smart companies have found ways to combat this stigma. Some brands, like Not Pot, have chosen to adopt a playful name and packaging scheme to attract first time customers and work against the stigma associated with CBD.
Due to the size of the legal grey area that CBD has been operating within, it is always a great idea to align yourself with a fulfillment partner who knows the CBD shipping laws. Shipping CBD to certain states may require different documentation and maintaining compliant with USPS is a job within itself. Finding a 3PL that knows how to navigate the CBD shipping requirements can save a company thousands in fines or lost product cost. Beyond industry knowledge, a great 3PL will work with your team to develop the branded packaging and custom assets that can make your product shine from anywhere on the shelf.
Your fulfillment partner should be exactly that…..a partner. The CBD industry is changing just as quickly as it is growing and finding a 3PL that scales with you is crucial to your long-term success. This partnership will allow you to offload the paperwork and focus on building your sales, profit, and product line. Coordinating the branding elements and product is important, but a trustworthy fulfillment partner will put your CBD business into high gear!