How Do I Make My CBD Business Successful?
By Space Coast Daily // August 17, 2022
Many of you may have already heard about the new class of products, and some may have even decided about starting their own online business selling CBD products. The cannabidiol (CBD) industry is one of the fastest growing because every day thousands of people are looking for methods to relieve physical pain and ways to care for the skin or the body.
If you intend to grow your CBD business online, then to keep your online store running smoothly, you will need to keep in mind some recommendations given in this article.
Why is selling CBD products considered a high-risk industry?
Cannabidiol, or CBD, is an active ingredient in plants from the hemp family that occurs naturally but can also be grown commercially. CBD is believed to be a non-addictive (non-psychoactive) way to improve and maintain mental and physical health. Unlike other hemp-derived active ingredients, CBD does not create a “euphoric effect”.
This is what a CBD SEO service usually uses as an argument for clients to explain the legality of this business. Indeed, this substance has a number of health benefits, including the treatment of epilepsy, the symptoms of Parkinson’s disease, pain relief, etc. The most common CBD products include:
■ concentrates, ointments, and drops;
■ gummies and drinks;
■ products for pets;
■ tablets and capsules;
■ tinctures, extracts, pastes, and more.
In the world of online payments, the sale of CBD products is considered a high-risk industry. Since CBD is obtained from the same plant as THC (psychoactive substance), banks and other financial institutions are scared of such products.
In addition, this type of business is characterized by an increased percentage of chargebacks and cases of payment card fraud. This is facilitated by a relatively small average check price (up to 100 USD) and a simple algorithm for making purchases on the site.
Therefore, if you want to organize a truly efficient payment acceptance on your website, be prepared for the opening of a high-risk merchant account and increased attention to ongoing transactions from the payment service provider and your acquiring bank.
The ways to increase your business competitiveness
One way to increase the competitiveness of a business based on the production and sale of medical cannabis is to create a holding company, which is registered in Canada. Meanwhile, the branches or separate companies with joint assets should be located in countries where the production and sale of these products are allowed. Why Canada?
Canada has been at the forefront of this latest investment trend, allowing companies like Tilray, Chronos, Canopy Growth, and Aurora Cannabis to flourish. Som Seif, Chief Executive of Purpose Investment, once said, “The medical cannabis industry has first emerged in Canada. We believe the cannabis sector is still in the early stages of a multi-year growth phase and that there is ample opportunity for innovation and new discoveries.”
Many Canadian companies have already invested in the growing European cannabis market. And many more will soon follow their example. With the gradual legislation in Europe, big money from Canadian investment funds, and the production experience of local companies, there is a strong possibility for companies registered in Canada to take over the European cannabis market.
As a result, over the next 5-7 years, it is likely that the European cannabis industry will be dominated by Canadian companies. And, that’s not necessarily a bad thing. After all, these companies know what they are doing, and they bring their best products to Europe in an attempt to outperform the competition.
CBD Branding Tips
No matter what kind of product you choose or what market segment you target, keep these 3 tips in mind when planning your overall cannabis branding approach:
1. Normalize your CBD product
Remember that CBD is a legal, healthy, and medically effective product. To demonstrate this, treat your branding and CBD products the same as any other. If your branding works just like any other medication, then your customers will follow you. This is the first step towards separating it from the “recreational drug” associations.
2. Use brand values and relevant stories to combat negative stereotypes
For CBD brand design, you must maintain the professionalism expected from a pharmaceutical company. Replicate your brand values and demonstrate your business ethics to show that you are far from being superficial. Brand storytelling, like telling how you started your company, is an effective branding strategy for any industry. For CBD companies, they are especially effective as a way to connect with customers who choose to distance themselves from cannabis products.
3. Your logo is the face of your CBD brand
The logo should express the essence of your brand and communicate what your product is about through graphics, color, type, and shape. No matter what your brand is focused on, your CBD logo should reflect it immediately. The best shapes, fonts, and colors for your CBD logo depend on your choice. In short, rounded lines, hand-drawn imperfections, and brighter, warmer colors look friendlier, more relaxed, and more inviting. On the contrary, straight lines, edges, and cooler, neutral colors are more formal and convey an impression of professionalism and efficiency.
4. Use the appropriate packaging
CBD packaging is an important aspect of your product branding. This is what your customers will hold in their hands, so it can create or destroy their brand experience. CBD packaging needs to be professional looking, visually pleasing, and functional at the same time, which is no small task.
Even if it is difficult to build a successful CBD brand, the rewards are more than worth it. The CBD industry is a new and fast-growing trend, meaning that the demand is high. But before you start counting your income, you must first penetrate the industry. The challenge with CBD is to change outdated opinions about cannabis, which puts a lot of pressure on your CBD branding.
You have to stand out from the competition, but you also have to resist preconceived beliefs about what you’re selling. More than other industries, CBD businesses rely on branding to gain their place in a huge niche that didn’t even exist a few years ago.