CBD is one of the hottest commodities on the market right now. The cannabinoid cannabidiol (CBD) shows up in everything from workout clothes to beauty products. If you’ve seen the record-breaking profits CBD companies are making and thought, “I want to sell CBD online,” then this is the guide for you! Keep reading to learn how to start your own successful online CBD business legally.
What Stores Sell CBD
Many major retailers have begun filling their shelves with CBD products. For example, the organic grocery giant Whole Foods now slings CBD across from their free-trade coffee and heirloom tomatoes. In some states, the hip apparel company Urban Outfitters has branched into CBD. Even Petco has a line of CBD products for your furry friends.
However, for someone just getting started in CBD, the overhead and permitting required for starting a traditional storefront business will likely be more trouble and cost than it’s worth. That’s why many are choosing to go the online route.
Is CBD Legal In All 50 States?
Understandably, since CBD is a cannabis product, many are apprehensive about entering the CBD industry for legal reasons. Even though cannabis has become much more widely accepted by society in the last decade, there still are a plethora of legal restrictions around its sale and cultivation. But what does that mean for CBD specifically?
In 2018, the Farm Bill federally legalized hemp, making CBD derived from hemp legal on a federal level as well. Despite the federal legal designation, it’s still up to each individual state to set its own guidelines regarding hemp and CBD. However, due to the farm bill, states can no longer restrict the transport of hemp or CBD products through their borders, making the logistics side of starting an online CBD retail company much safer and simpler.
So can you ship CBD oil? In general, CBD is legal to ship, though it is still advised to create shipping restrictions for states where CBD is illegal.
The other legal pitfall a burgeoning CBD CEO will want to avoid has to do with language. CBD isn’t approved by the FDA for any medicinal or therapeutic use, with the exception of the drug Epidiolex. Because of this, it’s important to make sure your website doesn’t make any health claims regarding CBD. Otherwise, you may receive a warning letter from the Food and Drug Administration or face further legal action.
Do You Need A License To Sell CBD?
Before starting your business, you will also need to acquire a business license. Small CBD companies typically register as an LLC. Depending on the state you are operating out of, you may also need to obtain a reseller’s license.
Can I Sell CBD On Amazon?
Jeff Bezo’s massive online marketplace has become ubiquitous in the culture, especially during the pandemic where so many Americans were left unable to shop at brick and mortar stores. Since Amazon’s client base is so large, one would think it would be a good idea to try and get their products on the platform. However, Amazon has a complicated relationship with CBD.
By simply searching CBD in Amazon’s search bar, you can find hundreds of different products that seemingly contain the cannabinoid CBD. However, many of these don’t contain any CBD at all.
The reason for that is, Amazon actually bans the sale of CBD on the marketplace. From the Amazon Sellers Guide:
Listings for products containing cannabidiol (CBD) are prohibited, including but not limited to:
- Full spectrum hemp oil
- Rich hemp oil
- Products that have been identified as containing CBD by LegitScript
So while it may at first seem compelling to get your CBD on Amazon, you’re better off focusing on your own website and brand.
