It is a common knowledge that CBD is said to cure pain, cancer, inflammation, and even epilepsy. The CBD compound which is also known as Cannabidiol has already entered the market although faced with scrutiny due to its association with the cannabis and the marijuana industry that also contains THC which is a psychoactive chemical that is illegal in most parts of the world. But despite of its legality issues, CBD oil has already started a market and have created a demand from customers.
The CBD oil industry is estimated to be a $2.1 billion market by 2020 and even projected to be valued at over $60 billion by 2024. Many individuals are taking advantage of this growing industry by putting up stores to sell CBD oil products to consumers in both online and offline stores.
A merchant must think of all the factors thoroughly before choosing on what method to sell CBD oil. It cannot be denied that it is cheaper to build and maintain an online store than starting a retail store. Many prospective CBD retailers prefer starting off with an online CBD oil store then open a retail store once the brand became well established. Both online and actual stores need a CBD Merchant Account Provider that can provide them with CBD OIL Merchant Services like payment processing solutions that are needed to accept debit and credit card payments. Since CBD oil is considered as high-risk, seeking a CBD Merchant Account Provider that will provide a CBD merchant account can be difficult.
More than finding the right provider for the CBD oil merchant processing, another challenge that must be overcome by the CBD merchant is the marketing of the CBD products and enticing the customers to buy in and keep on repeating buying of CBD products.
How to market CBD products?
1. Know CBD
The first step a CBD merchant must undertake in order to market its product is to know CBD. It is vital for the CBD merchant to understand the science behind it, the slang or the common language used by the farmers, manufacturers and even the customers, the studies made and the CBD product itself. The staff that is helping to sell the CBD products must also be knowledgeable. The said knowledge can help in explaining with prospective customers that CBD products are non-psychoactive and will not make the customer feel “high”. High level of internal education about CBD and how it works can help in passing along the correct information about CBD to customers which may help in alleviating the stigma attached to CBD products and also empower the sales team by employing them with the power of suggestion that can make their sales pitch stronger and help them convert inquiring customers to buying ones.
2. Know the Source and Keep it Legal
In order to get quality CBD, the hemp plants to which it will be derived from must also be of good quality and properly grown by the farmers. The manner to which the CBD oil is extracted also affects the quality of the produce. CBD is a compound extracted from cannabis. Hemp plants produce CBD with lesser THC than marijuana. There is an imposed limit of 0.3% for THC content for CBD for it to be legal in the United States. The merchant should ask for a Certificate of Analysis (COA) to confirm of the CBD’s purity. The products being sold must the imposed limit otherwise the merchant may face legal consequences.
Aside from the COA, the supplier must also have documentation proving that they are authorized to resell CBD and is a duly registered business.
3. Quality Website
The website where the online store is incorporated must be up and running without any glitch. The merchant must ensure that the website is fast, user-friendly and has good contents. SEO is very important for the website of CBD business so the site must be optimized and updated on a regular basis.
Data security must also be provided in the site by enabling data protection so that customers will not fear that their card data might be stolen and used by a fraudster.
4. Social Media Marketing
Social media can be used as a Power Tool. The CBD merchants must use the platforms like Facebook, Twitter, Instagram, and the likes to gain a competitive advantage in building the brand, selling online and gain buying followers.
CBD merchants can also utilize Social Influencers, Instagram celebrities, and bloggers in promoting CBD products by posting information or pictures of the CBD goods. Although these have become a norm in promoting online, it is said that there is only a minimal ROI effect for sponsored posts.
5. Do not make false medical claims
According to FDA, CBD products cannot be sold as a dietary supplement and is prohibited to be used in food because CBD is considered as a new drug that is under clinical investigation that can be used to treat the certain diseases. New drug approvals take several years of clinical trials and moreover, dietary supplements are not intended to treat, diagnose, prevent, or cure diseases.
Inventing questionable medical claims is a big No-No for any business. Realistic expectations must be set with the customers to avoid them feeling frustrated because the product they have bought wasn’t able to deliver the expected effect right away. Wrong expectations may lead to lots of chargebacks that can definitely hurt the business in the long run.
6. Excellent Customer Service
Providing good customer service experience to customers is the most powerful way of promoting the business and to make sure that one time customers are converted to frequent buying customers.
Marketing helps in boosting CBD sales in the ever-evolving and very competitive market. This helps the merchant achieve its business goals and to build confidence in CBD brands while marketing to targeted consumers and also upselling other CBD products.
As a last note, CBD merchants must keep in mind that Federal law still considers cannabis as illegal. That is why the CBD merchant must take precautions in selling CBD products online and processing online orders and shipments.
How We Can Help CBD Merchants With Their Cannabis Business Processing
Even if you’ve been denied for CBD Merchant Account by other processors due to High-Risk nature of CBD business, iPayTotal will always work with CBD merchants. We have alternatives to explore that most of the processors basically can’t give do to our banking partnership network. Since we understand the marijuana business, we will address the possibility of a unique solution that will address your business’ issues and help your business develop.
To learn more about CBD Oil Payment Processing, call us at +44 800 776 5988 or click here to set up your personalized payment consultation.