Opportunity Knocks: Online CBD Store
From illegal to one of the fastest growing markets in the US, Cannabidiol (CBD) has made a massive breakthrough into the market and, coupled with the boom in online sales, the climate for CBD online stores to thrive has never been better. The turn of events in 2020 has had a lot of devastating effects, however, as the saying goes where there is change there is opportunity.
The benefits of Hemp derived CBD have been known for years but it was only just recently legalized and those who already believed in the product hit the ground running and are already realising exponential returns on investment. With knowledge spreading fast, debunking stigma, more and more people are becoming open to using the natural ingredient and, with its vast number of applications from cosmetics to helping with health issues, just about everyone can find a use for CBD products; 33% of Americans already have.
The number of CBD products already on shelves have consumers spoilt for choice and it may seem like the chance to get into the market has passed but compared to the untapped market potential, existing retailers have barely scratched the surface of what it has to offer. Additionally, the rise in online sales means ecommerce CBD retailers are well positioned to reap tremendous returns.
Everything we’ve said up to this point likely comes across as rather “sales pitchy”. You’ve probably heard all this before about pretty much every business opportunity that’s ever existed – “great opportunity”, “fast growth”, “great ROI”, queue the inspirational testimonials. As 1 Stop CBD Business we obviously have a vested interest in pushing the growth of the hemp and CBD market, so let’s put our motivations and sentiments aside and take a look at something that we can’t possibly influence – the numbers.
In 2018 CBD product sales amounted to $620 million, rose 561% to $4.1 billion in 2019, are expected to see a smaller growth rate in 2020 due to the environment to $4.7 billion, but are expected to recover and surpass $20 billion by 2024. So yes, as a CBD service provider we have a reason to make this opportunity sound alluring but even without our input the numbers clearly speak for themselves.
Assuming at this point the CBD side of the opportunity is clear enough let’s look at online sales. Until recently consumers have shown a preference for making their CBD purchases at brick and mortar stores with 40% and 34% of purchases taking place in dispensaries and retail stores, respectively, in 2019. For obvious reasons, however, that preference is shifting. The US recorded a year on year increase in online sales of 55% in July 2020 and with people becoming more accustomed to the convenience (and safety) that ecommerce has to offer, this trend is expected to continue. Within the CBD market specifically, 54% of consumers reported moving their CBD shopping online.
Now there are of course challenges with starting an online CBD store, as is the case with any business, such as navigating the legal terrain, marketing, etc., but the fact is – it can be done. Execution comes with a lot of moving parts but if aligned properly and done right the payoff is big. And the great thing is with the rising popularity of CBD business ventures you can skip the costly trial and error that often comes with not only the start-up game but also the complex CBD retail terrain and have the insights and backing of an expert team right from the onset. Schedule a call with us today or click here to find out how 1 stop CBD Business can help you successfully launch your CBD brand and capacitate your start-up to establish and grow into a viable business. If you’re still on the fence then read on to find out “why now is the right time to launch your online CBD business” [click here].
Single Care 2020 CBD Survey