Cannabidiol or the commonly known as CBD is a non-psychoactive chemical found in all the plants of the cannabis species which has already become a large industry and is expected to be a billion-dollar market by 2020. With this, more and more people have become interested to take advantage of this growth by either investing with the CBD manufacturers or becoming a CBD retailer by setting up an online CBD store. The marijuana industry is developing at a quick rate each day, as more shops open and states keep on authorizing its utilization. It’s acquiring record numbers of benefits for organizations and states. The legal marijuana business hit $9.7 billion in North America in 2017, as indicated by a report from the cannabis industry. This speaks to a 33 percent expansion more than 2016. Be that as it may, this isn’t to be mistaken for Cannabidiol oil (CBD), which has been found to have an abundance of medicinal value. Accordingly, we’ve seen the business development at a quick rate throughout the most recent year, with items extending in everything from skin cream and tinctures to even CBD infused pet products. As we’ve watched this development, we saw a serious absence of CBD Merchant Account options. Payment Processors and Banks have customarily avoided the business, turning down entrepreneurs trying to make an online presence. To be really successful in the CBD space on the web, you require a trustworthy, long-term merchant account solution. With such a significant number of inconsistent and unreliable providers, you may think there is no real option for CBD merchant accounts.
iPayTotal, however, has introduced a Domestic payment processing solution for the CBD business. iPayTotal isn’t only a payment processor, we’re a payments partner, here to enable you to develop your business. This means better rates, quicker funding, no reserves and the elimination of issuer declines.
Before setting up an online CBD store the merchant must think of the following things thoroughly.
Things To Consider Before Starting To Be A CBD Retailer
The merchant must be able to understand CBD, the health and medical benefits that ranges from helping to reduce pain to treating epilepsy, how to use it properly, the accompanying potential risks, and the issues surrounding its legality.
a. The differentiation between CBD vs THC which are both chemical compounds that are found in cannabis plants must be clearly understood. CBD or Cannabidiol is non-psychoactive and has been proven to have medicinal. THC or Tetrahydrocannabinol is psychoactive and creates a mind-altering “high”.
b. There are varying cannabis laws worldwide. The United Nations which is an international organization that includes 193 member states has not mentioned CBD as a controlled substance in the treaty is designed in 1971 to control psychoactive drugs called Convention on Psychotropic Substances. CBD as a single compound is considered natural and relatively safe but its association with the cannabis plant has created confusion and debate on its legality. The extracted CBD once found containing a small amount of THC may be considered illegal because of its psychoactive effect for countries where cannabis is illegal. It can be noted that very recently, FDA approved a purified form of drug cannabidiol (CBD) to treat epilepsy.
In the United States, CBD oil with less than 0.3% THC is considered legal to sell.
2. FINDING A REPUTABLE CBD SUPPLIER
For small businesses who don’t plan on growing an industrial hemp and process extraction of CBD content, online merchants must find an established CBD wholesaler to purchase CBD products from. A reputable seller will ensure that products that are sold to customers are of quality. Below are some factors to consider when choosing a CBD supplier.
a. SOURCING – The location where the CBD products are sourced affects quality. Farmers who grow hemp have years of experience and are following above standard practices like in the US or Europe produces quality products.
b. METHOD OF EXTRACTION – There are many ways to extract CBD compound. Some of these methods involve using harsh chemicals that are hard to be removed from the final product. The highest standard of extraction is CO2 extraction which is a safe and clean method although more complicated.
c. CERTIFICATE OF ANALYSIS (COA) – This is very important because COA is a report that certifies the level of CBD, THC and other compounds in the CBD product which helps in ensuring the customers that they are receiving the pure product as stated on the label.
d. PRICE – Merchants must be wary of sellers that sell at a very low price.
e. OTHER SERVICES PROVIDED – to be able to maximize the chosen supplier, the merchant should also ask if the supplier provides additional services such as drop shipping and private labeling.
Getting Started With A CBD Online Store
How to “Make It” Online as a CBD Retailer And Sell Consistently
1. BUSINESS REGISTRATION – The business must be duly registered before starting of operation.
2. RESALE LICENSE – Many wholesalers require a resale license for retailers.
3. E-COMMERCE SET UP
a. WEBSITE CREATION
The merchant must choose a website building platform where the website will be built. There are some platforms that prohibit the sale of CBD. The merchant must perform a research which platforms allow selling of CBD. The most common platform nowadays is WordPress but this platform needs additional eCommerce plug-in. Merchants must try looking for an e-commerce platform that provides website set-up.
b. PAYMENT PROCESSOR
Payment processor allows a merchant to charge the customers for the products being sold. Finding a fair payment processor can be a bit tough because unfortunately, with CBD being associated with marijuana makes sellers of CBD as high risk merchants which mean higher rates, lesser flexibility and the risk of getting the merchant account closed for minor infractions. A merchant must look for various payments processing option that is being offered by providers which are based on its suitability on the business. There are also processors that provide specialized payment processing for CBD merchants.
4. ONLINE MARKETING – This is most important in “making it” as an online seller of CBD products. Following these steps can provide the merchant a good leverage in the online marketplace competition.
a. Create a visually appealing website design – A clean, attractive website is important because according to study, homepage design is first noticed than its actual content. Hiring a developer to enhance and customize the web pages can be an option depending on the merchant’s budget.
b. Focus on SEO or Search engine optimization that helps in garnering online traffic. Write or hire writers for blogs or articles. Writing about CBD industry can help gain recognition, increase organic traffic which can help to make the website rank for keywords about CBD and can help in enhancing the potential of the e-commerce site because it can lead paying customers to the site. Writing original content frequently is a good SEO strategy that helps increases the website’s visibility on Google. Copying another website’s content is recognized by Google and penalizes the website publishing the plagiarized content.
c. The merchant must be cautious with the language used in the website and must be mindful not to make any medical claims that CBD prevents, treat, diagnose, or cure a disease not unless backed up with an FDA certification.
d. Marketing the CBD products on the online store can be challenging because common methods of eCommerce marketing do not allow paid CBD products promotion like Google Advertising because extracted CBD is considered a product of marijuana which is listed under the list of dangerous products or services of Google.
e. Social media can also help in garnering organic traffic by building a strong social media following.
f. Display ads on high-traffic sites can also be utilized. Although there are only certain sites that allow CBD ads.
iPayTotal – Best CBD merchant accounts Provider
If you are looking for CBD Merchant Account, you are in the right place, as iPAYTOTAL provides the best solutions for Low and High-Risk businesses. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website.