Growing consumer interest and changing legislation means that more brands are selling cannabidiol (CBD) oil online. In this post, we look at the burgeoning CBD oil market and order fulfillment’s role in it.
In the rapidly changing world of eCommerce, one industry that’s received an abundance of media /e/nattention, catching the eye of digital marketers and investors alike, is CBD oil.
According to intelligence from Brightfield Group, the CBD market will be worth $591 million this year. But, with a shift in UK and US cannabis legislation, experts now predict vastly increased growth – by 2022, the CBD product industry could be worth in excess of $22 billion.
So what is CBD oil?
CBD, short for cannabidiol, is one of over 113 naturally occurring cannabinoids found in the cannabis plant. It’s grown in popularity in recent years, due to reports that it brings multiple medical benefits, while being safe to use.
CBD is sold in various forms – from oil sprays and capsules, to e-liquids/vapes and even gummy bears. Depending on the product quality, consumers can typically pay between £30 and £250 per unit.
This clearly makes CBD a premium consumer product.
Is CBD oil legal?
In the UK and European Union (EU), CBD oil is legal to buy and sell, as long as it contains less than 0.2% tetrahydrocannabinol (THC) – the psychoactive ingredient responsible for a “high”. This means that it’s usually derived from hemp (the species of cannabis with THC levels of less than 0.3%) rather than marijuana (the species with THC levels of 15-40%).
In the US, the legality of buying and selling CBD oil is still a grey area. For example, it’s legal to grow “industrial hemp” in some states, yet illegal to ship hemp-derived products nationwide.
Where can you sell CBD oil?
Growing consumer interest in CBD oil in the UK means that it’s now readily available from traditional high-street retailers, as well as a host of new online CBD oil brands.
The vast majority of these eCommerce sellers market their products as food or nutritional supplements, in order to avoid the costly process of gaining approval to sell it as a medicine.
What role will fulfillment play in the CBD oil industry?
Research from Brightfield Group found that nearly 65% of CBD sales in 2017 were carried out online.
With this significant market share, eCommerce CBD brands will need to focus their time and expense on ensuring their marketing campaigns stand out against the competition. More importantly though, they’ll need to establish high-quality eCommerce supply chains, to deliver on the promises that these marketing campaigns make.
Premium products, like CBD oil, inevitably attract a high consumer expectation for order fulfillment. That means when you’re selling CBD oil online, your buyers will expect to get fast delivery, real-time tracking and the right product every time.
Because of this, savvy CBD oil brands are partnering with fulfillment houses such as James and James. Our organically-certified warehouse, fast and discreet shipping, and strict stock control all help CBD oil brands meet these high customer expectations.
It all began in 2010, when James Hyde and James Strachan couldn’t find a modern shipping service for the eCommerce business they ran. Faced with messy warehouses based on out-dated systems, they decided to build their own. We’ve not stood still since, helping hundreds of online brands scale up – and scaling with them.