Dropshipping CBD has become a modern way for many startups to sell CBD (cannabidiol) products. But is this newer form of retail profitable, especially in the sale of CBD? This blog will outline some of the high level thoughts regarding the topic.
Dropshipping CBD is profitable. With more and more countries accepting CBD as a useful component, the industry is growing with limitless potential and a large profit margin if properly carried out.
Exactly how much is the profit from this type of retail and what are its advantages?
How Much Do Dropshippers Make In Profit?
The profit made from dropshipping varies depending on many factors; from the products sold to how the advertisement is used to promote your business, and more.
Your positioning and marketing strategy will determine how much profit you make, month after month.
Beyond this, the CBD market is competitive! Having a partner on your side to navigate some of the challenges, can certainly be a benefit.
Partnering with suppliers like Long Leaf Provisions provides quality CBD products that are cost-effective for you to maximize your profit margins.
Can You Dropship CBD?
Dropshipping CBD has been legalized but it has so far been restricted to the United States, the European Union, and the UK.
The only difference being is the amount of THC (Tetrahydrocannabinol) present in CBD that produces the high sensation.
In the US products must contain less than 0.3% and in the EU and UK less than 0.2%.
Even though it is confined to these two regions of the world, it’s an upcoming industry that’s already booming despite being in its prime.
For instance, in the US this industry is expected to reach a value of $20 billion by 2024.
With its current success, it is projected to launch on other continents as more health benefits and research is carried out on CBD.
Thus, the dropshipping CBD industry is filled with potential.
How To Dropship CBD?
The process of dropshipping CBD consists of:
1. Finding The Correct CBD Supplier
CBD exists in a regulated market segment, hence your supplier must meet all criteria set by various departments.
For the EU the supplier must meet the requirements by the EMCDDA (European Monitoring Centre for Drugs and Drug Addiction) as well as the European Commission.
Whereas US requirements show the FDA (Food and Drug Administration) has not yet made an official statement on CBD.
Safety is key, hence all CBD products by the supplier must pass microbiological, mycotoxins, pesticides, and solvent residue tests, and have less than 0.3% THC.
Long Leaf Pro fulfills all necessary requirements to ensure a safe and quality CBD product. We provide all of our dropshippers with access to our lab results. We can also review how to explain them to potential clients.
2. Advertise Your Supplier’s Products
The best method is to create your own banding and labeling along with effective advertising.
Effective advertising and branding allows interested consumers to visit your online shop and purchase from you directly.
Once the customer places an order on the website, there is a backend fulfillment process that ensures the client receives the product they purchased in a timely manner. The client often doesn’t realize that the product wasn’t shipped from you : )
After your supplier receives the order you’ve facilitated, the supplier will send the products to the customer.The advantages of dropshipping will remove the issue of inventory on hand, hence there is no need to buy products in bulk upfront. Additionally, managing a fulfillment process and the investment that it requires i.e. insurance, rent, human resources, etc. can become a headache and a full-time job in itself.
It also allows businesses to try various products and see what fits them best without steep initial investments.
Is Dropshipping CBD Cost-effective?
Dropshipping CBD can be cost-effective; the initial investment required is quite reasonable.
A big cost of most business models is the delivery and tracking of products.
Yet in dropshipping, both services are taken care of by the supplier either partially or fully.
This alleviates part of the financial burden.
Placing orders directly to the supplier instead of buying produce yourself is advantageous.
The risk of financial losses due to lack of sales after purchasing stock is eliminated.
There is no need for a warehouse that would otherwise act as an expense, making dropshipping profitable.
Thanks to the increase in demand for CBD, as more and more health benefits are being found, the CBD drop shipping industry is only expected to expand.
With this rise in clientele, striking while the iron is hot is essential.
By being part of this industry in its younger phase, you’ll have the opportunity to build a renowned brand.
This would allow you to attract customers as the industry evolves, meaning more potential profit.
Advantages Of A CBD Dropshipping
CBD dropshipping has several benefits that are ideal for starting and scalable businesses, including online access to a large customer audience and simplified retailing procedures.
The large pool of customers provides several opportunities, but it also means that the competition might also be high.
Advantages of CBD dropshipping include:
- The start-up is fairly easy and quick.
- It can easily be grown to make a significant profit as long as quality and effective advertising is implemented to make it stand out from the rest.
- The start-up is manageable as you will have to take care of customers and the online store.
- With the possibility of the business being home-based, very little equipment is needed; the most important being a laptop or computer used to handle the website.
- Having ownership allows you to have control over what to advertise and adapt to shifting customer demands rapidly.
- Even when fully grown only a few staff will be required to handle the increase in customers. Thus, keeping expenses down.
- No need for inventories, stock, or a warehouse.
Final Thoughts – Why Partner With Long Leaf Pro?
When partnering with Long Leaf Pro, you will have our full support along the way so you never have to be alone at any stage of the process getting started.
Long Leaf Pro offers a wide range of quality and trusted CBD products that are verified safe via extensive lab testing.
Our specialized team of CBD experts has an established system in place ready to fulfill your customer’s orders in a timely manner.
To get started, contact Long Leaf Pro today.