No product has managed to grab the vast majority of the world’s attention in such a limited time frame as CBD has. With an estimated industry value of more than $20 billion by 2024, it is no surprise that most entities selling CBD online are searching for new ways to effectively market their products. CBD is one of those products that can cut across quite a wide demographical range, with consumers from all walks of life and ages. Adults, children, old people, and even pets are not left out. If you are reading this article then it is more than likely that you are very interested in entering the business of selling CBD online.
As with all businesses, you have to start by asking yourself a few questions. First off, you need to understand the requirements to enter the CBD business. This includes having a range of products available and having connections with suppliers to procure more CBD products. Next, you need to do some research and make sure that there is actually a market for the CBD niche that you are choosing to go into. In doing so, you should also come up with a marketing strategy around this CBD niche to make sure that you will properly be able to market these products.
Of course, the most important question you need to ask yourself is how much money you actually think you can make selling CBD online. That last question is of particular concern for a lot of entrepreneurs. This article aims to answer that question and show you just how valuable CBD and the CBD industry is.
How much is the CBD industry worth?
As of 2018, the global CBD industry has a value of about $11 billion and that valuation is estimated to rise 107% annually until 2023.When it comes down to CBD products, the liquid (oil) forms of CBD and the resulting products had the biggest market share with 51.86% valued at $1.6 billion in 2018. The tincture segment, on the other hand, has a market valuation of $1.1 billion.
How much can a business selling CBD online make?
When you consider the numerous benefits that CBD provides, it is no surprise that it is one of the largest and fastest-growing industries in terms of valuation. As a business or brand that is selling CBD online, it is possible to make quite a profit from your products. However, this is only possible once you have cemented your customer base. When it comes to the CBD product segments available to you, you have to decide which forms are likely to align with your customer base. This includes CBD products in solid or liquid form.
Ifyou were to heavily concentrate on the solid form, the market is further segmented, as you have CBD crystals, capsules, CBD wax, and hash. With the liquid form of CBD, you can create products like e-liquids, creams, tinctures and of course, CBD oil. If, for example, you were to charge about $60 on average for every product with a markup of at least 50%, it will be necessary for you to sell at least 200 products in that month to have a profit of $6,000.
This is just one example of how much money you can make in the online CBD business. Ultimately, it will be up to you to determine what kind of sales you can drive and what kind of profit margin you can derive from these sales. However, this article should give you a good idea of where to start, as you should be able to see how profitable the CBD industry can potentially be.