Sales of CBD-related products are tipped to reach $3 billion. Here’s how to start a CBD dropshipping business to profit on that spend. According to Statista, CBD consumer sales are projected to reach $1.8 billion by 2022. This is roughly half a billion U.S dollars jump since the federal legalization of hemp crops in 2018. The CBD industry isn't looking to slow down anytime soon and if you're someone who wants a piece of the pie, but isn't sure how to
CBD Dropshipping in 2022: How to Cash in Cannabis-Derived Products
Cannabidiol (CBD) products have become super popular over the past few years, with ecommerce sales of CBD reaching $3 billion in 2022 alone.
Some 44% of regular users spend between $20 and $80 per month on CBD products, making CBD dropshipping a lucrative business idea for entrepreneurs looking to start a business on a budget. You don’t need to invest money into product development or inventory—simply sell an existing CBD product at a higher price and have your dropshipping service handle fulfillment.
But dropshipping CBD is somewhat different to selling other products. A scattered supplier base and mixed-quality products make CBD dropshipping a high-risk (though also high-return) business.
Do it right, though, and dropshipping oil and other hemp-derived CBD products through your Shopify store can be a lucrative niche. Here’s how to get started.
- What is CBD dropshipping?
- What makes dropshipping CBD different from dropshipping other products?
- How to get started with CBD dropshipping
What is CBD dropshipping?
CBD dropshipping is the process of selling products containing hemp-derived cannabidiol through an online store.
The difference between a traditional CBD company and dropshipping CBD is that you don’t need to hold inventory. You’ll work with a third-party dropshipping supplier who picks, packs, and fulfills a customer’s order when placed through your ecommerce store.
What makes dropshipping CBD different from dropshipping other products?
Because CBD products contain cannabis-related compounds, the dropshipping process is slightly different from other products.
CBD is a regulated product, which makes dropshipping it more complex than dropshipping other items. Laws for selling hemp-derived products vary widely between countries, and even between states in the US.
Although CBD products don’t contain THC, some states have laws that prevent people under the age of 18 or 21 from using or buying CBD products. You’ll need to verify that people purchasing CBD products through your dropshipping store meet the age requirements for that state, like CBD Farmers Collective does with a splash page.
More variation in suppliers
According to Thys du Plooy, owner and founder of Our CBD Pantry, dropshipping lets brands offer a wider range of products.
“This also enables me to find the truly outstanding products in a category and focus on these rather than having to offer products that aren’t necessarily as good but are convenient due to supplier relationships,” Thys says.
The CBD industry also encompasses a wide variety of hemp products to dropship, including:
- Supplements, capsules, and pills
- CBD flowers
- CBD for dogs and pets
- CBD oils for vaping
- CBD gummies and edibles
- Creams and lotions
- Bath bombs
- Ointments, tinctures, and topicals
- Sprays and atomizers
That variety comes with the cost of a wide range of quality. It can be more difficult to find a reputable supplier selling a high-quality product at a price you’ll still make profit on.
Goodleaf sells a range of CBD products through its Shopify store. Goodleaf
Speaking of profit, CBD dropshipping can be highly profitable when done right, with CBD products selling for a premium price. The greater the margin between the product price and your resale price, the more money you’ll make as a CBD dropshipper.
How to get started with CBD dropshipping
Despite the rules and regulations around dropshipping hemp-derived products, it’s an easy way to make money online without a cash investment upfront. Here’s how to start a CBD dropshipping program.
1. Choose a CBD dropshipping supplier
The quality of your dropshipping supplier arguably plays the largest role in the success of your new business. After all, shoppers won’t know that you’re not physically fulfilling orders. Any errors that your dropshipping company makes are your responsibility.
When searching for suppliers, ask for certification that proves its products are safe and regulated. The Food and Drug Administration (FDA) reports that some companies are using CBD “in ways that violate the Federal Food, Drug and Cosmetic Act (FD&C Act) and that may put the health and safety of consumers at risk.” Protect your business by choosing a regulated supplier.
Sunsoil shows the lab results of its CBD products on its online store. Sunsoil
Online shoppers want free, fast delivery—so much so that 32% avoid making purchases that don’t meet their shipping requirements. Choose a dropshipping partner that leaves minimal time between receiving an order and marking it as shipped.
Need help finding a CBD dropshipping supplier? Popular options include:
2. Set up your online store
Once you’ve found your supplier, create an online store for customers to place orders. Shopify is perfect for hosting your CBD online store since it offers:
- Low start-up costs (just $29 per month for all the features you’ll need)
- Reliable payment gateways that accept debit and credit card payment for CBD products
- Turnkey health and beauty website themes
If you’re based in the US, you’ll need to submit an attestation to Shopify for the sale of hemp and hemp-derived products. This proves you’re using a payment processor that accepts payments for CBD-related products.
3. Add CBD products to your store
Once you’ve created an ecommerce website for your CBD dropshipping business, use conversion rate optimization (CRO) best practices to increase the percentage of people that buy. That includes:
- High-quality images to help online shoppers who can’t sample the product
- Product descriptions thatfocus on the health benefits, from anxiety to pain relief, of each CBD product you’re selling
- Customer reviews and testimonials, which are used by 93% of shoppers prior to making an online purchase
- Trust signals, such as money-back guarantees or logos of any third-party certifications products may have, to build the trust an online shopper needs to feel confident in their purchase
- Welcome bars to announce special promotions or shipping deals, such as “spend $50 to qualify for free shipping” (This tactic is proven to increase average order value, and therefore, profits.)
4. Promote your products
To start making money as a CBD dropshipper, customers need to know that your online store exists. Identify your target customer and run marketing campaigns to reach them using the following tactics:
- Content marketing. Discover the keywords your target customer is searching for, such as “best CBD oils,” and produce an optimized piece of content that appears in their search engine results page.
- Email marketing. Encourage website visitors to join your email list with coupon codes or exclusive content. It’ll give you a direct line of communication with customers—even if they haven’t purchased yet.
- Influencer marketing. As your CBD store begins to grow, identify influencers that your target audience listens to. Pay a small fee to have the influencer promote your products to their fan base. This builds brand recognition and sales, especially considering 62% of shoppers consider influencer recommendations more trustworthy than celebrity endorsements.
Owned marketing channels like email are best since you control your relationship and communication with customers. But if you have some cash to invest, consider running PPC ads on Facebook, Instagram, or Google. Advanced targeting features across each platform allow you to reach your target market from $5 per day.
Note that some advertising platforms, including Meta, restrict how hemp-derived products can be advertised across its social media networks. You may need to edit your campaign messaging to meet its advertising criteria.
There’s no need to fear CBD dropshipping
While regulations around hemp-derived products are stricter than others, CBD users spend lots of money on their favorite products. Become a CBD dropshipper and you’ll profit on that existing spend without manufacturing, storing, or fulfilling your own orders.
✨ Get started dropshipping CBD today
Shopify makes it easy to dropship CBD products. Find suppliers through dropshipping apps, accept payments, and run marketing campaigns to acquire new customers—all within one platform.
CBD dropshipping FAQ
Can you dropship CBD?
You can dropship CBD products through your own online store. Popular dropshipped CBD products include hemp oil, supplements, lotions, and skin care items.
Is dropshipping CBD profitable?
CBD dropshipping can be a profitable business for first-time entrepreneurs. To maximize your earning potential, choose a high-quality product at a low price. Markup the same product on your online store with a high profit margin and net the difference.
How do you price CBD products for dropshipping?
When pricing CBD products, calculate the total costs of buying and selling the product, including supplier fees and shipping costs. Research the sale price of comparable CBD products. Price yours competitively while covering the cost of sale.
Does Shopify allow the sale of CBD products?
Yes, Shopify allows merchants to sell CBD products through their own online store. You’ll need to sign an attestation and make sure you’re using the right payment provider.
Using CBD Dropshipping to Improve Your Private Label Brand
According to Statista, CBD consumer sales are projected to reach $1.8 billion by 2022. This is roughly half a billion U.S dollars jump since the federal legalization of hemp crops in 2018.
The CBD industry isn’t looking to slow down anytime soon and if you’re someone who wants a piece of the pie, but isn’t sure how to get started, dropshipping may be the easiest way for you to dip your foot into the CBD industry with minimal risks.
Dropshipping CBD is an order fulfillment method that has risen to popularity for the ease that it provides entrepreneurs and small business owners. It allows you to build your dream CBD line of products while partnering with an established CBD manufacturer.
Learn more about what a CBD dropshipping program looks like and how you can get started in this promising e-commerce industry.
What Is Dropshipping?
Dropshipping is an order fulfillment method that frees entrepreneurs and small businesses from managing their own inventory, renting a large warehouse to store CBD products, or handling the shipping to their customers.
How Do You Dropship CBD Products?
- A customer places an order through your online store and pays your retail price.
- The order and customer shipping information are forwarded to our team.
- We package and ship the order directly to your customer.
What Are the Benefits of Dropshipping CBD?
1. Easy to Get started
Perhaps the best part of dropshipping CBD is just how easy it is to get started. Leave the hemp farming, extraction, and product formulations to the experts while you focus on building and marketing the brand.
The first order of business is finding a supplier, like Neurogan. We offer a reliable CBD dropshipping program for US-based companies. Our premium CBD products are made from organically farmed hemp right here in California.
All our products are tested in-house and via an independent lab to ensure the quality is among the best in the industry.
2. Freedom to Work Where You Want
Though it’s rewarding, it’s not always easy running a business. There are many stress points for entrepreneurs including, costs, damaged goods, inventory supply, storage, and more.
Dropshipping CBD products allows you to make money anywhere you have a decent wifi connection, which minimizes the need for an office or warehouse space. This gives you the freedom to work from virtually anywhere while your supplier handles the inventory and shipping.
3. Reduced Overhead Costs
When all you need is a laptop and internet connection to carry out the day-to-day operations of your business, you eliminate a huge chunk of overhead costs that most brick-and-mortar stores have to worry about.
Ditch costly warehouse bills, office space, energy bills, stationery and packaging costs, and labor costs when you work with a reliable drop shipping team.
Not having to use warehouse or office space for your inventory will significantly reduce your overhead costs, meaning you can keep more of your profits with a singular fixed dropshipping fee.
4. Time To Grow & Scale Your Business
Making more money doesn’t have to mean more work, let CBD dropshipping help you to work smarter, not harder.
Entrepreneurs just getting started with any venture know all too well how allocating time is perhaps one of the biggest hurdles in maintaining a business. By leaving the task of storing, packaging, and fulfilling orders to a supplier, you’ll free up valuable hours you can use towards improving your sales and marketing strategy.
Frequently Asked Questions About Dropshipping CBD
What Do I Need To Dropship CBD?
The first thing you’ll need to be eligible in a CBD dropshipping program is a registered business.
You’ll need to file the necessary paperwork in your state to start an online business selling products from a website, just as you would a physical store.
Next, you’ll need to come up with your company’s branding and website where customers can learn about your business and order products.
The other key step in finding success in your dropshipping program is a good marketing strategy. Putting your products in front of the right people and teaching your ideal customers how they can benefit and use CBD products will help you stand out in the market.
The other component you’ll need is a reputable CBD manufacturer that provides a fair dropshipping program and high-quality CBD products. At this time, Neurogan only partners with US-based businesses for our CBD dropshipping program.
When shopping for a drop shipping partner, you want to make sure the wholesale CBD supplier implements the proper safety and testing practices such as independent testing and quality assurance measures because it’s an integral part of your branding and builds long-term customer loyalty.
Is Selling CBD Profitable?
There’s a lot of money to be made selling CBD if done right. CBD is one of the fastest-growing industries worldwide.
With many more people learning about the health benefits of cannabinoids and their destigmatization, hemp products are becoming more mainstream. It’s projected to become a $1.8 billion industry within the next two years, it’s safe to say the CBD industry has made many success stories since its legalization in the United States in 2018.
With premium-quality CBD products behind you, the biggest determining factor for your success in the drop shipping world is your branding and marketing strategy.
Start Dropshipping With Neurogan
At Neurogan, we proudly offer CBD dropshipping private label services for both online and brick-and-mortar businesses. Partner with our team for the ability to store your CBD products at our warehouse and have us do the heavy lifting when it comes to packaging and shipping your goods.
Our state-of-the-art advanced fulfillment system will receive an email each time an order has been placed for your business and we’ll send the product directly to your customer, making the process easy for you.
We’re pleased to offer our CBD dropshipping private label service in support of our customers. After your order is submitted for your private label, get in contact with our team to find out how to join our CBD dropshipping private label program. We look forward to taking care of your goods with care and attention to detail.
How Does Private Labeling Work?
There’s a lot more to creating a profitable business than the product itself (though it’s a crucial component).
Successful businesses need to consider their unique approach to connecting their brand to their particular audiences to generate profits. This means that you need to establish a marketable brand to sell the products.
You handle the branding and let us handle the products. When you choose Neurogan for your Private Label CBD partner, you get access to a catalog of the best selling CBD and CBG products that have undergone rigorous quality control measures and safety testing before they’re bottled and sent to your customers.
You can customize your CBD product line with your choice of flavor, strength, and extract type. We only sell full spectrum and THC-free broad spectrum extracts due to their potency and well rounded CBD benefits. Our team can also help you with creative design solutions, so you can feel supported throughout the partnership.
What’s even better for budding entrepreneurs or those looking to get started with a limited budget is that our drop shipping program has a low minimum order value of $1000.
If you have any questions about getting started with our Private Label Program, we encourage you to reach out to our team.
The Takeaway: Dropshipping CBD
For entrepreneurs passionate about the CBD industry, dropshipping programs offer an exciting venture as a business.
Leave the logistics of hemp farming, extraction, and formulas to the experts while you handle the sales and marketing on your e-commerce website.
Dropshipping gives you the freedom to start an e-commerce business virtually anywhere you have access to the internet with your laptop. And when you partner with a reputable CBD manufacturer, you can rest assured that your CBD product quality and order fulfillment are met with professionalism and care.
Connect with our team today to enquire about our Dropshipping and Private Label Services.