Is CBD Dropshipping Profitable?

CBD (cannabidiol) dropshipping has become a popular option for many entrepreneurs to sell their products. Is this newer form of retail, particularly in the sale of CBD, profitable?

Dropshipping CBD is a lucrative business. The industry is growing with boundless potential and a big profit margin if correctly carried out, as more countries accept CBD as a helpful substance.

The CBD Industry in Numbers

cbd dropshipping profitable person filling up cbd bottle

Consumer interest in CBD products has been steadily increasing since 2016, partly due to the touted health advantages and partly due to the tight association with the cannabis plant.

EAZE, a cannabis delivery network based in San Francisco, declared 2018 to be the “breakout year” for CBD.

The number of CBD users in the United States doubled in 2018, from 2.6 percent to 4.8 percent, with Baby Boomers leading the way.

Female Boomers were among the most likely CBD consumers, according to EAZE statistics, choosing these products to deal with anxiety, sleep troubles, and pain treatment.

According to a Consumer Review survey, more than a quarter of Americans had tried CBD at least once in the last two years.

That makes sense, given the widespread use of CBD oil in a variety of products, particularly in the wellness, food, beverage, and cosmetic industries. Consumers can now choose from a variety of CBD products, including tinctures, topicals, edibles, and even lattes.

In the United States, the retail market for CBD products is predicted to reach $16 billion by 2025, up from $2 billion in 2018.

When you combine the aforementioned with the fact that 80 percent of those who are familiar with CBD support its use (even if they do not use it themselves), it’s evident that CBD is a very promising niche for launching an online business.

Understanding the Laws and Regulations Around CBD

Legality is obviously a big part of CBD marketing, and breaking the rules could lead to serious consequences. The cannabis plant’s classification as a Schedule I drug has slowed progress in the legal department.

Marketers are concerned about FDA regulations, so if you want to start selling CBD online, you might be wondering what your options are for advertising and marketing.

Is CBD Officially Legal Now?

cbd dropshipping profitable fda

The answer to this issue is entirely dependent on where you live, whether you want to start selling CBD produced from marijuana or hemp plants online, and what goods you want to offer. Only hemp-derived CBD products are allowed to be sold on the internet.
The FDA’s authority to regulate food, drugs, cosmetics, devices, pet food, and dietary supplement items was not altered or changed by the passing of the 2018 Farm Bill.

Many states changed their state drug laws to remove hemp off the state’s controlled drugs act, while also embracing the FDA’s stance on the sale of hemp-derived CBD products.

The sale and consumption of CBD is prohibited in some states. Other states impose restrictions on the types of CBD products that can be sold or require a special license.

If you’re selling or planning to sell CBD products online, you’ll need to make sure you’re following all of the relevant state laws. Using product-based shipping restriction rules on your site will assist you in staying within safe shipping zones.

How To Dropship CBD

The process of dropshipping CBD consists of:

Find The Correct CBD Supplier

Finding the Right CBD Supplier is the first step in the dropshipping process.

Because CBD is sold in a controlled market, your supplier must meet all of the requirements set forth by several departments.

The supplier must meet the EMCDDA’s (European Monitoring Centre for Drugs and Drug Addiction) as well as the European Commission’s requirements for the EU.

In contrast, the FDA in the United States has yet to make an official statement on CBD.

Because safety is paramount, the supplier’s CBD products must pass microbiological, mycotoxins, pesticides, and solvent residue tests, as well as contain less than 0.3% THC.

Advertise Your Supplier’s Products

Creating your own brands and labeling, as well as excellent advertising, is the finest option.

Effective advertising and branding encourage potential customers to visit your online store and make purchases straight from you.


A backend fulfillment procedure ensures that the customer receives the product they ordered in a timely manner after placing an order on the website. The client is frequently unaware that the goods were not delivered by you.


is cbd dropshipping profitable delivery

Your supplier will ship the merchandise to the consumer after receiving the order you facilitated. The benefits of dropshipping eliminate the issue of inventory on hand, so there is no need to purchase things in bulk upfront. Managing a fulfillment process and the investments it necessitates, such as insurance, rent, human resources, and so on, can be a hassle and a full-time job in and of itself.

It also allows businesses to experiment with different goods to find what works best for them without making large upfront costs.

Is Dropshipping CBD Cost-Effective?

Dropshipping CBD can be cost-effective, as long as the initial investment is fair. The distribution and tracking of products is a significant expenditure in most business strategies. However, in dropshipping, the supplier handles both services, either partially or completely. This helps to relieve some of the financial strain.

It is more cost-effective to place orders directly with the supplier rather than purchasing produce yourself. The possibility of financial loss as a result of a lack of sales following stock purchase is removed. Dropshipping is profitable since there is no need for a warehouse, which would normally be an expense. The CBD dropshipping sector is predicted to grow in response to the rising demand for CBD.

With this increase in clients, it’s critical to strike while the iron is hot. You’ll have the potential to develop a recognizable brand by being a part of this business when it’s still fresh. As the industry evolves, you’ll be able to attract more clients, which means more potential profit.

Wrapping Up

CBD is a fascinating commodity to deal with. On the one hand, providing your customers with life-improving goods can make a genuine difference. On the other hand, you must constantly educate the general public (as well as some B2B partners and other stakeholders) about the actual benefits of your products, their legal status, and their lack of ties to THC-dominant marijuana.

It’s a difficult fight. When you consider the CBD industry’s sales prospects, it’s certainly worth it. Between 2019 and 2025, Grandview Research predicts a 22.2 percent compound annual growth rate for the CBD market.

And if you start your online CBD business today, you’ll be a part of that revenue stream as well!

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