As CBD is becoming increasingly popular for its non-psychoactive benefits, the industry is growing by leaps and bounds. However, the recent surge in popularity has posed some unique marketing obstacles that go beyond the usual “how do we let more people know about our product?” But it’s not all bad news. This article will cover seven common marketing obstacles that CBD businesses face, so you can avoid them and embrace your CBD business.
Finding An Ecommerce Solution
To find the best platform for your needs, it’s a good idea to evaluate all of your options. Some will allow the sale of CBD products, whereas others will not. One of the largest online markets is Amazon, but they took the unfortunate step not to let anything CBD-related be sold on their platform. This severely restricts a vast swathe of the market as it is one of the most popular destinations for online shoppers.
Solution
There are two potential solutions to this problem:
- Find an eCommerce option that allows CBD.
- Set up your website using the free and open-source WordPress platform.
The two largest are Shopify and BigCommerce, which fortunately allows you to sell this product where the laws permit. This is fantastic because they are easy to set up and sell from. Another option is to use the combination of WordPress and the WooCommerce plugin that allows you to sell almost anything while maintaining control over your shop.
Payment Processors
Unfortunately, several payment processors do not permit purchases to be made using their systems, similar to the eCommerce situation. This is arguably more difficult than finding a platform to sell on, as getting paid is vital to all businesses. The most well-known processor, PayPal, doesn’t allow any high-risk industries to use their platform, and they class CBD in this category. Unfortunately, the same goes for the second biggest option, Stripe.
Related read: Here are different methods of taking CBD (beginner-friendly guide).
Solution
Some other interesting payment solutions have recently begun to relax their policies regarding CBD, one of which being Square. This is beneficial as they offer solutions for payments in person or online, so you can choose to sell in a physical shop using their terminals and online. It should be noted that there are some strict requirements to adhere to, and during their trial phase, any mistakes could result in your money getting frozen for a considerable amount of time.
Banks
Following payment processing, you need a location for your money to be deposited to continue running your business. However, some banks seem to be squeamish about accepting income related to the sale of CBD products. This is very disappointing but an unfortunate reality of life.
Solution
Luckily with the passage of the SAFE Banking Act in September 2019 by the US House of Congress has lifted all traditional restrictions for banks, which should make life easier. There is also the added benefit that moving banks is not as complex as some of the other issues on this list. Therefore if your current bank is unable or unwilling to accept your money, there are plenty of alternatives to choose from.
Shipping
While shipping is usually relatively hands-off and allows you to ship whatever is technically legal, it is not they who are the issue. The biggest problems arise when you are shipping worldwide and you are sending packages to countries, each with laws governing CBD. While you may not get into legal trouble per se, they could likely seize your shipments, meaning that you will lose the product and most likely have to refund your customers.
Solution
The most straightforward action to take would be keeping up to date on every country you deliver to and what their laws are. This even extends to interstate shipping within the USA. Some states still do not allow any CBD related products to be sold, including (as of 2021):
- Indiana.
- Kansas.
- Kentucky.
- Mississippi.
- North Carolina.
- South Carolina.
- South Dakota.
- Tennessee.
- Texas.
Uniqueness And Competition
As a fast-growing industry, you need to ensure that your business and product stand out from the crowd. There is a tremendous amount of competition globally, and if you are unable to create a product that appeals to a large audience, you will suffer the consequences.
Solution
One of the best things you can do is to engage in content marketing. This could include written content, video, and test cases of new and exciting products. You can also go down the route of creating private label products to differentiate yourself from others who resell existing products. CBD business advisors Joy Organics suggest numerous methods to create your own unique product that will appeal to an interested audience. They suggest that you will be able to build a loyal customer base in this rapidly increasing market.
Advertising
One of the very best forms of digital advertising involves using Google using their AdWords platform and Facebook Ads. However, just like many other businesses, Google has banned using their platform to advertise CBD and other products that they deem as high-risk, and Facebook used to but still has strict limitations.
Solution
With AdWords, there is an unusual workaround that involves sending ad traffic to a CBD-related landing page. Still, this landing page mustn’t sell any products directly on it. However, if you can get your Conversion Rate Optimization (CRO) on point, you should find that you can convert a large section of your traffic into buying customers more holistically.
Search Engine Optimization (SEO)
This is the holy grail when it comes to online marketing of any kind. If your customers can find your business searching via a search engine, you will see an immediate bump in sales. However, it isn’t as simple as it sounds.
Solution
There are several methods to improve your SEO. If you want to go it alone, you can create lots of great content and publish it frequently. This will also help you to stand out as per number 5 on this list. Another alternative is to hire agencies that can take care of the entire process. This can be pricey, but once the traffic starts rolling in, the cost will be worth it.
The widespread popularity of CBD as a treatment for arthritis and other conditions is spurring growth in the cannabis industry, which includes not only CBD products but also other marijuana-derived products. Every company in a growing sector faces unique challenges. Still, although CBD marketers face many unusual problems that other businesses don’t, there are solutions to every problem.