Medical cannabis can help with several diseases to relieve pain and even improve the prospect of healing. Two main components make the difference: THC and CBD. THC has a psychoactive effect, while this is not the case with CBD. CBD is therefore currently available without a prescription. Turnover with CBD is expected to increase in Europe to around 3.5 billion euros in the next few years. Entrepreneurs can still cut off a piece of the cake.
Since no recipe is required for the consumption of CBD, online retailers for CBD are shooting out of the ground like mushrooms. According to Statista, 40 percent of people stated that they would be treated with medical cannabis. The openness of the population towards cannabis increases.
In contrast to conventional preparations, taking vegetable alternatives comes across fertile soil. In addition, the consumption of CBD probably leads to only a few side effects and risks for the body.
According to an analysis, the European market for CBD products will probably grow to 3.5 billion euros in the next few years – and should also remain at this level. The market for CBD in pet medicine should even have an annual growth rate of almost 59 % by 2028. So there is significantly more potential here.
CBD effect: Why do you consume CBD?
In cannabis (the Latin word for hemp), many probably think of the intoxicating effect that arises when smoking marijuana (the dried flowers of the female hemp plant).
The ingredient responsible for the intoxicating effect on the body is THC (tetrahydrocannabinol). However, consumers also report a pain relieving, fitting, and anti-inflammatory effect. This in turn is due to the ingredient CBD (cannabidiol).
The active ingredient CBD can be demonstrably calming, antispasmodic, and pain-relieving, but not psychoactive – in contrast to THC. At the same time, it does not make it dependent and there are almost no side effects. And that is one of the main reasons why people consume CBD.
Side effects can only occur as an effect with very high concentration and long intensive intake. If other drugs are taken in parallel, a doctor must of course be consulted beforehand to discuss possible interactions.
CBD – miracle cure or tailoring?
A herbal pain reliever without side effects and addiction potential? That sounds excellent. It is therefore not surprising that the market is growing and more and more people want to consume cannabinoids.
If you want to become self-employed in this business with an online shop, you should not only see the quick money but also know how to score with the target group.
Here are some key data:
- Cannabinoids count as dietary supplements
- The dosage of the products is crucial
- 2 – 3 percent CBD content: Suitable for pets
- 5 percent CBD content: the most common concentration, but works more as part of a lifestyle consumption
- 10 percent CBD share: From this concentration, cannabidiol has a noticeable pain reliever. Suitable for cramp or pain treatment; But also a significantly more expensive product
- 15 – 25 percent CBD share: offers acute help with severe pain. Special caution is required here in the dosage. It is best to only take it after consultation with the doctor
- CBD is mostly consumed in the form of oil (also hemp oil). CBD oil, which is obtained from hemp, works quickly since it is absorbed directly over the mucous membranes in liquid form
- In addition, however, there are also capsules, creams, or ointments
- CBD oil and hemp oil is not the same. Hemp oil is obtained from the hemp plant and can also contain THC in small quantities. CBD oil, on the other hand, only contains cannabinoids
- Not only in pain, but also taking CBD to sleep is a common reason for buying the oil.
Cannabidiol has the effect described above. Speaking of tailoring would be wrong. However, consumers must be informed about the appropriate advantages and disadvantages. Also about their application.
Companies have the opportunity to sell the products with the best prospects for customer satisfaction according to optimal communication. That is the basis for long-term success. Why?
Because Cannabinoids are a consumption good, consumers always have to buy them. This in turn leads to a regular cash flow for the seller. If you achieve a high level of customer loyalty and a high restart rate, you have a solid business with a predictable income.
What does CBD oil cost?
The costs for CBD oil are primarily dependent on the concentration of the active ingredient cannabidiol. For a 10 ml bottle with a concentration of 10 percent CBD, € 60 should be calculated (from the end customer’s point of view). With a 5 percent concentration, the product costs about half.
Before the start: Create the business plan and financial plan
Before the online business starts, a business plan and a financial plan must be found. It will be difficult without these two things.
It describes how the business should be set up, which financial center is needed, where they come from, and what income is to be expected. In addition, the business plan also goes into the business model itself and the risks.
This is not fun for many start-ups, but the creation of a business plan forces companies to deal intensively with their business.
The financial plan describes the profitability of the business. This is a basic complex of topics that the founder has to deal with. After all, this is not a hobby, but a business. Risk-adequate income must be possible.
And we don’t talk here that loans are requested from banks. A business and financial plan is also required for this. But the start of such a business should primarily take place with equity. It is not to be expected that credit institutions provide debt.
CBD sale in the online shop: step-by-step instructions
1. Founding the company & registering businesses
The start of a company is more of a formal step. Usually, the hand goes hand in hand with the business. In the first step, retailers must therefore register a business. For the online shop. It should be noted that the trade with cannabis should not be registered. This would probably lead to problems on the part of the authorities. If a trade has already been registered in this direction, this could be used.
2. CBD license required?
As long as no THC-containing cannabis products are sold, but only cannabinoids, no license is necessary.
3. Contact manufacturers/wholesale
“The profit is in purchasing”. This is a well-known commercial proverb. And that’s right. Therefore, contacts with manufacturers of CBD oil or other CBD products must be made. In the beginning, the negotiating power is probably rather low. But gradually it could rise and the dealer can negotiate better conditions.
4. Open an online shop
The hosting, the software, the scope of the shop, the payment options, billing, etc. You can find further information here: open online shop.
5. Advertising and sales
How do you advertise a new online shop? The answer is: search engine optimization. But not using advertisements for Google & Co., but optimizing the text and the descriptions so that Google classifies this content as relevant for CBD.
The steps described here are only a very large direction. Of course, the start-up lexicon has further information on any of the subject complexes.
Risks in the CBD Business
The greatest risk for the seller may be a legal regulation of the CBD trade. The legalization of cannabis is currently being discussed. The legalization of cannabis initially sounds advantageous. But it depends on the details.
The regulation is primarily related to THC, the part of cannabis that has an exhilarating effect. However, if the regulation also extends to other components, retailers could get difficulties.
If, for example, approval is required or extensive evidence must be provided, then retailers must expect significantly higher costs. The business basis may then even be withdrawn.
The Super-Gau for the online retailer would be if the legalization of CBD is undone or can only be bought with a medical recipe. This would result in a large part of the customer groups.
It is difficult to say how high this risk is. Nevertheless, it should be kept in view.
Another risk is the setting of consumers to cannabinoids. Some studies that have not yet recognized long-term damage that has not yet been recognized would cause demand.
In an article, the consumer advice center describes that the consumption of food with the hemp ingredient CBD is “anything but harmless”. In addition, food, including food supplements, would have no approval.
How do you find a CBD online shop and sell CBD online?
We asked the managing director and partner Thomas Sulzer from CBD-vital from the founder lexicon:
With the vision of helping people with natural alternatives to more well-being, I have together with Mag. Pharm in 2017. Matthias Schöggl, Dr. Klaus Bechter, and Peter Binder founded the online shop CBD Vital as start-up companies. At that time, it was not foreseeable that we would celebrate our 5th anniversary as the market leader for high-quality CBD and hemp products.
We are certain that the hemp and CBD market will continue to pose great potential in the future. However, a stable foundation is required for successful participation so as not to fail because of the three market-specific challenges:
Regulatory stumbling blocks
Even if the possession and consumption of CBD are legal: hemp products unsettle the authorities. If you want to work in this area, you have regular checks, strict laws, and often changing and difficult to manageable guidelines – which vary from country to country. These often make beginners disappear from the market quickly. The permanent exchange and cooperation with (right) experts as well as elaborate quality controls are not only a clear competitive advantage in this segment: they are a must and guarantee the customer and thus also the company-maximum security.
Raw material procurement and competence networks
To be able to survive the regulatory requirements, raw materials of the best quality are required-and the security that only CBD-rich usable hemp is used. There are years of experience and know-how in hemp cultivation behind our CBD oils that are bio-certified from head to toe. By bundling competencies from the areas of medicine, pharmacy, and product development, we can create innovative products – and always optimize the manufacturing processes. The next challenge: is also bringing the products to the customer.
Innovative online shop solutions
In addition to our high-quality products, our online shop is probably the largest project and heart. The focus is always on user-friendliness – and associated with this regular further development. A combination of exclusive content, a targeted SEO strategy, and natural, organic growth with solidified processes plays an important role in optimal visibility.
Another piece of advice that we would like to give on the way: in no way lose focus. The (CBD) market is full of short-term trends-but it is not worth jumping up. Our original goal of helping people are still our daily credo – from product development to daily advice in customer service. Keep an eye on your long-term strategy and remain modest, but still confident and strong in the procedure.
What do I have to do now?
- Create a business plan and describe the business model from A to Z!
- Create a financial plan to determine how much capital you need and where you get it from!
- Consult experts. You cannot be familiar with search engine optimization, website programming, tax issues, marketing, etc. everywhere!
- The profit is in purchasing: Find cheap and serious suppliers!