What is a White Label CBD Business?

CBD businesses have taken off quite a lot in the past few years ever since marijuana has been made legal for consumption. White label CBD businesses refer to a business that sells a cannabis product manufactured by someone else. Recently a huge rise has been seen in the demand for white label CBD products in the market. If you are looking into starting your own cannabis business, now is the right for you. Learn More Reasons to say yes to a CBD franchise business.

How to Launch A White Label CBD Business in 2024?

Despite the demand, there is also a lot of competition and if you are not well prepared on what to do, you run the risk of tanking your entire investment in such a business. For your convalescent, here is a step by step process by which you can launch your very own white label CBD business:

1. Find your CBD niche of products:

Before getting mixed up in running a CBD white label business you would need to figure out your niche of products. First, you would need to find your niche:

  • CBD-based cosmetics.
  • CBD-based pet products.
  • CBD-infused foods and beverages.
  • CBD-infused supplements and wellness products.

Next, you can focus on identifying your product types. There are a variety of options out there for CBD products:

  • CBD drops and sprays.
  • CBD edibles.
  • CBD lotions and balms.
  • CBD pills and capsules.
  • CBD tinctures.
  • CBD topicals and patches.
  • CBD vapes and cartridges.

2. Understand the legality around CBD:

Production of hemp was legalized back in 2018, however, there are some restrictions on CBD products:

  • All CBD products must not contain more than 0.3% THC if they are to be sold within the United States of America or Canada.
  • CBD products are legal in 15 states for recreational use and 36 states for medical use in the United States of America.

3. Get a CBD business plan:

Whenever launching a new business, you must have a game plan set in place before taking any action. Here is the list of e-commerce CBD operations you would need to check off beforehand:

  • Analyze the CBD market.
  • Select a catchy name for your brand.
  • Determine what your product range is.
  • Manage your financing.
  • Build an effective marketing plan for your products.

4. Ensure that your documentation is in order:

Everything regarding any type of business is digital these days. In order to sell your CBD products online you need to obtain two types of licenses:

  • A regular business license.
  • A reseller license.

5. Find your CBD products manufacturer:

When looking for a CBD products manufacturer, you need to ensure that you are getting the best possible products for your customers. Ask the manufacturer to let you see the results of the following tests for product quality check:
  • Pesticide tests.
  • Microbiological tests.
  • Residual solvents tests.
You can also check if the manufacturer is best for your business on the following criteria:
  • Hemp sourcing method.
  • Hemp origin.
  • Hemp extraction method.
  • Reviews from other entrepreneurs.
  • Pricing.
  • Extra services.

6. Select an e-commerce platform:

Finding the right platform to market your CBD products will help your business take off and increase profit margins in the long run. Here are the three most popular e-commerce platforms for selling CBD products:
  • BigCommerce.
  • Shopify.
  • Shift4Shop.

7. Develop your business site:

You need to have a site if you want your business to prosper. The best way to achieve an effective business site for your CBD product is by customizing your design. Here are some things you need to keep an eye out for:
  • Your key product information should have a prominent spot on the navigation page.
  • Ensure smooth navigation for your customers.
  • Add products and their descriptions and ensure that they are accurate, fact-based and not overly complex.
  • Upload your product photos and ensure that they are high-quality.

8. Determine shipping and payment terms:

Shipping is an extremely vital part of e-commerce. Here are some things to keep in mind in order to maintain good customer satisfaction rates:
  • Set a clear threshold for free shipping.
  • Decide on whether or not you want to offer a variable fee.
  • Estimate the delivery timeline that is feasible for your business.
  • Choose an e-commerce shipping solution.
  • Select a payment processor that suits your CBD products.

9. Marketing your CBD products:

Marketing is the key to success in the business world. Therefore, you need to ensure your marketing is on point from start to finish.
  • Focus on your content.
  • Get variety in your product types.
  • Mention the CBD extraction methods used in your products.
  • List possible benefits and results from your products.
  • Also list potential side-effects.
  • Mention the advised usage frequency or dosage.
  • Use SEO to your advantage.
  • Sponsor influencers to market your products.