How to Become a CBD Seller? - Ultimate Guide

How to Become a CBD Seller? – Ultimate Guide

June 23, 2021

There was a time the CBD was a relatively strange and uncertain market – not anymore, though. Experts estimate that the CBD industry will hit $22 billion by 2024. Despite already taking its place as one of the biggest industries of the last few years, recent trends indicate it will only get better. And bigger.

A bigger industry means more money to rake in, and that’s fabulous news for anyone planning on becoming a CBD seller. However, it’s not all smooth sailing, as there’s also a high chance of failing if the proper steps aren’t taken.

Luckily for you, this article will serve as a guide on the steps to take and mistakes to avoid if you want to become a successful CBD seller.

Let’s go!

cbd popularity over the yearsThe Google graph above shows the increasing popularity of CBD over the years.


How to Become A CBD Seller

Before entering any venture, proper preparation and research are needed. The CBD industry is no different. There are steps to take before entering the market, and this article will detail them.

1. Is It Legal?

This is the very first question to ask on the road to becoming a CBD distributor. They say the journey of a thousand miles begins with a step; well, if your first step is in the wrong direction, everything else won’t count. Seriously, if you omit this step, then everything you do may be a waste. Confirm with local authorities and bodies if CBD sale is legal in your area. You can’t be too careful at this stage.

CBD sale is strictly regulated in some regions, while other regions have far milder restrictions on its sale. It goes deeper than whether the sale is legal or illegal too. Some states will allow CBD sales but only at a certain percentage content.

Aside from the legality of CBD sales, there are other legal precautions you need to take. For one, you shouldn’t make exaggerated or false assertions about the product you’re selling. That’s only setting you up for trouble. Then, you must confirm with your state’s authorities the limits to cbd advertising, marketing, and selling.

Again, remember you’re trying to end up with a successful CBD distribution network.

2. Study the Market and Create a Business Plan

Okay, you have confirmed that CBD sale is legal and all; what next? Study the market. Don’t just dive in. The CBD market is fairly new, to be honest, but there’s still a reasonable level of competition. You don’t want to go into a system that sets you up for disappointment. This is why you have to study the CBD market around you.

Keep yourself updated with the happenings in the CBD industry. Even when you eventually start, you still have to pay close attention to the CBD market. Knowledge is never wasted.

No building can survive without a foundation. No business can survive without a business plan. It’s as simple as that. While it may sound cliche or obvious, you need a business plan and a clear one at that.

Simply put, a business plan details the goals of your business and how you plan on achieving them. This way, you have a clear idea of where your company is going, which helps you judge your progress along the line.

Below are some of the essential aspects to consider in developing a business plan:


There is a lot of planning that must go into finance. You cannot afford to start without proper financial planning (pun very much intended).

First, estimate how much you need to start your business. It’s definitely cheaper to start your business online, but there are still lots of fees involved. Either way, you will be looking at a minimum of $2000-$4000 to start your business.

After this, ask yourself how you plan on getting that amount. Are you going to be churning the funds out of your pocket, or are you going to seek external assistance? Be very clear on what you want before proceeding.

The Target Audience

Who are your potential buyers? To know this, you first have to be sure of the products you want to sell. If you know what you’re selling, it will be easy to know who will buy it. For example, if you specialize in CBD oil for dogs, your potential buyers will be kennels, vet doctors, dog shelters, etc.

Many times, CBD sellers end up with minimal profits because they are selling to the wrong target audience.

CBD Target Audience


Your suppliers are just as important as your customers. First and foremost, you have to ensure your suppliers are operating legally. Do your research to make sure you don’t sell illegal products.

There are hundreds of companies that sell CBD products. However, you need to choose those that best suit your business. Don’t settle for an unsuitable business. And check more information about best CBD suppliers in our separate blog post.

Potential For Profit

How profitable is the business? When will the profits start to come? Is the potential profit worth the hassle? These are all questions you need to find answers to. You want to become a CBD seller, we get it, but you have to ensure you’re not going to be doing at a loss.

Dropshipping or Private Labeling?

Dropshipping is a business model that involves selling products without actually touching or even owning them. Private labeling, on the other hand, involves your business’ own label. They both have their pros and cons. For instance, dropshipping is easier to start but far more competitive. Decide on which you want for your business.

Set Reasonable Goals

You’re probably reading this, imagining how big you’ll be in a few months and how much profit you’ll make – well, we’ve got news for you. The chances of you becoming an instant millionaire are very low. In fact, your profit may be totally negligible at the start. You just have to fire through this phase. Don’t give up.

Start small, and then gradually expand.

Ask For References

When choosing a vendor, don’t just take their word for it. That’s not smart. They want to make profits just like you, so they’ll, of course, sell themselves up. Ask them for references to confirm if they’re really as good as they say they are.

3. Online or Offline?

This is one of the more difficult questions to answer. They both have their pros and cons. Online businesses are easier to start and will expose you to a larger audience, but physical shops will make it easy for you to build relationships with customers. Good customer relations will mean more recommendations and even more customers.

We wouldn’t say one is better than the other because no one is better than the other. It’s just about what you need. If you can, you can operate both online and offline, this would be the best option.

4. Pick A Befitting Business Name

Okay, here’s a tricky part. When naming, you want to get it spot-on because you can’t just change your brand name easily along the line. Changing your name can confuse buyers and cause loss of customers. Your best bet is to pick a befitting name for your brand at the start – one that perfectly describes you and what you stand for and still pleasing to the ear.

Be careful of names tied to location, as you may have to relocate in the future. You should also stay away from goofy names. The name doesn’t have to be overly formal, either. If you’re unsure, you may want to get a team of professionals to help.

You must also ensure there aren’t businesses with that same name or similar to avoid litigation.

5. Get A Bank Account

As a seller, you’re going to be dealing a lot with money – both going in and out of your business. You will need a bank account for this. One common mistake people make is to use their personal bank account for their business; don’t. A business should have its own identity and, therefore, its own bank account. Also, this will create a distinction between company finances and personal finances.

Go for an account with limited charges and one where you can easily and conveniently move funds in and out.

6. Choose The Products You Want to Sell

Another critical step in becoming a CBD seller is deciding on the products to sell. Many sellers just ride trends and usually end up without a business focus or direction. Consider it like jumping from one product to another, as long as there’s the potential for profit. While this sounds like a good strategy on paper, it usually doesn’t work out as well.

The good news is the diversity in CBD products. There are tons of CBD products for different fields. Would you believe it if we told you there are CBD products just for dogs? It’s amazing, really, as it means there are just so many areas to specialize in.

It gets better. Even in the area or field, there are still tons of different products to choose from. You can make money selling CBD oil, tinctures, topicals, capsules, gummies, flowers, among others.

Look for one with fairly low competition around you and specialize in it. Over time, when your business becomes large enough, you can think of specializing in other products.

CBD Products

7. Licensing

Generally, you don’t need a license to become a CBD seller. This is great to hear, considering how much of a bother it is to obtain business licenses. However, you have to ensure you follow all of the legal regulations required by the state. Your products must also be top-notch and of the right quality.

Aside from you, your suppliers also have to follow the necessary rules and regulations provided by law.

8. Website Development and Social Media Presence

We live in a digital age. The probability that you’re reading this on the internet is virtually 100%. The internet has become a part of our lives, and businesses have to adapt. If used properly, the internet will be your best friend, irrespective of whether your business is online or offline.

You need to develop a website and optimize it. Then, you need social media presence. One of the best ways to connect with customers is on social media. Both your website and social media channels must be expertly and professionally handled. Check out various CBD website building options and choose the one that fits you best.

9. SEO and Marketing

There’s something called a Search Engine Results Page Ranking on Google or any other search engine. This ranking decides which brands come first when you search for a certain keyword.

For example, if you search, ‘how to become a CBD oil distributor?’ on Google, you will get several results on the first page. Then some others on the second, and the third, and on. The higher a firm’s SERP rankings, the higher they appear on the Google search results pages. The implication of this is better chances of a customer contacting them.

This is where SEO comes into play. With proper Search Engine Optimization, you can place high in SERP rankings. SEO can be done with high-quality posts and messages. Feel free to employ a professional CBD SEO agency such as Digital Octane to help you out.

Marketing is another essential aspect of becoming a CBD seller. It’s not about how many goods you have; it’s about how many you can sell. And how do you sell? Effective marketing. There are several and different marketing strategies; you have to find one that will work for you. Note that what works for someone else may not work for you, though.

10. Start Selling

After following the above steps, you’re good to go. You have the green lights to start selling CBD. None of this will matter if you don’t take the bold step and start selling CBD products. After all, the purpose of this article is on how you can become a CBD seller.


The CBD industry is booming and will only continue to grow bigger. This industry is a perfect opportunity for businesses to make huge profits. You can become a CBD seller, but you have to do it the right way.

This article will serve as your guide on your journey to becoming a successful CBD seller. Good luck!

For more information on developing a winning CBD brand, visit Digital Octane. We offer various services, including website hosting, CBD payment processor integration, tech support, supplier support. You can even get free consultations.

You want your CBD business to be successful; we do too! Reach out to us today.

Want to start selling CBD online?
Check out our turnkey eCommerce solution for CBD Sellers!
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