cbd dropshipping

CBD Dropshipping – How to start your CBD Business

January 27, 2021

Why Start an Online CBD Business?

CBD made headlines in 2018 when the Agriculture Improvement Act of 2018 – known as the Farm Bill – legalized it in multiple countries and all 50 states. People are interested in this global market since CBD products are thought to help alleviate pain, anxiety, depression, and other health challenges and is showing some impressive results for patients with epilepsy. It is also growing exponentially, according to GMR, the global Cannabidiol (CBD) Market was valued at USD 395.2 Million in 2019 and is projected to reach USD 3,420.4 Million by 2027 (GMR 2020).

You should be aware of the legislation, however, since the FDA (Food and Drug Administration) is still doing research to prove the safety and effectiveness of CBD.

This means that marketing, buying, selling cbd, etc. comes with a unique set of challenges. There are strategies to overcome these, though. what should be remembered is that you are never allowed to make medical claims of any sort and try to steer clear from edibles as these are not approved in most states. It is also best to research what is allowed in the state or states where you intend to sell your CBD.

CBD Dropshipping: What is it?

Dropshipping allows you to run your business without the worry of having to keep stock on hand or delivering stock to customers. These tasks are handled by a third party and you are responsible for marketing and selling the products. CBD dropshippers market and sell products on the supplier’s behalf. There are pros and cons to CBD dropshipping. Let’s take a look at them.

The Pros of CBD Dropshipping

1. Low Startup Costs

You may be responsible for marketing the products but you don’t have to face the costs of buying a ton of stock upfront, renting out a store, or paying for the manufacturing of the products. You also don’t need to handle the shipping/delivering side of things and there are ways to use social media and other online techniques to market your CBD products without incurring high costs.

2. Low Inventory costs

Retailers are constantly faced with the challenge of either buying too much or too little stock. They end up losing money when products become obsolete. Buying stock is time-consuming and costly and market trends need to be predicted. This is where CBD dropshipping is great, you won’t have to worry about keeping stock at the risk of not selling it.

3. Test New Markets with Less Risk

If you’re dropshipping CBD products, you can test the market to see what your customers are interested in without having to buy the stock on hand. If a customer shows interest in a new product you can simply forward any orders to be fulfilled to a third party. This is a great way to see which products will and won’t sell without wasting money along the way.

The Cons of CBD Dropshipping

1. It Takes a While to Earn Well

CBD dropshipping is a long term commitment. It is not suitable for anyone wanting to see a huge profit, quickly. It takes dedication and hard work, but it may be worth it in the end provided you are in it for the long haul.

2. Low Profit Margins

You don’t get to buy in bulk and are more likely to pay more per item. This makes your profit margins lower. The key to making a decent profit is to try and sell a lot more products than you would have if you were selling stock on hand.

3. Loss of Quality Control

You cannot control the fulfillment of the order. This means that when you are dropshipping CBD, you cannot control the time it takes for the order to get to the customer, you cannot deal with any issues they may have and you cannot build relationships with your clients as you would if you were managing the whole process.

What’s the Difference Between CBD Wholesale and CBD Dropshipping?

With both of these, you act as the middleman. The difference is that CBD wholesale means buying stock In bulk and selling it to retailers. With CBD dropshipping you buy stock from a manufacturer as you need it and then sell it to individuals instead of businesses. CBD wholesale may be more profitable but CBD dropshipping has fewer risks. With CBD wholesale, you could end up with stock you have bought but cannot sell for some reason.

Tips to Start a CBD Dropshipping Business

  • Prepare a Budget: Dropshipping is still a business so you need to prepare yourself in the beginning for potential income loss. Try to be as proactive as possible with your budget planning.
  • Choose the Right CBD Products: Do research to see which CBD products you want to dropship. There are different products available from tinctures to topical creams. Remember to check the legalities of the CBD you intend to sell in each state.
  • Suss Out Your Competitors: While it’s great to sell a sought after product that is difficult to find, analyzing your competitors will also help you to see what is in demand and what isn’t.
  • Choose a Legitimate Supplier: You want to know that your CBD products are of high quality, and the best extraction methods are used. After all, you will be the one who is questioned if the product is not good or if there are legal questions so use a reputable source.
  • Choose a Dropshipping Partner: Doba, Oberlo, and Dropship Direct are some examples of companies that you can partner with for your dropshipping needs.
  • Build an Ecommerce Website: Shopify is one of the most recommended websites to use for dropshipping and it integrates well with Oberlo. You will need to check that these support the sale of CBD products, however.


If you want to dropship CBD then we hope this article has given you the information and tips that you need. Remember, dropshipping can be a profitable business. It just takes time and patience and it is a great approach for testing out the market with minimum risk.

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