Shipfusion Blog

The Ultimate CBD Fulfillment Guide: Part One

Though it’s currently less than one billion dollars, the CBD industry in the United States is growing at an exponential rate. As new sellers and eCommerce storefronts emerge on the CBD horizon, it’s crucial for business owners and shipping teams to understand the best ways to distribute their products, from manufacturer fulfillment to safe shipping practices.

Many companies assist in the fulfillment and shipping of CBD products, and it’s essential that you choose one with a reliable reputation. As the demand for CBD products continues to grow, so does the need for quality CBD fulfillment services.

In this guide, we’ll discuss:

  1. An overview of CBD products and industry growth, so you know your shipping restrictions as it pertains to your product
  2. Legal factors to keep in mind, including shipping requirements
  3. Choosing a CBD fulfillment center
  4. Shipping carriers that will ship your CBD products
  5. What to consider before shipping CBD products

As we conclude, you should have a firm grasp of how to ship your CBD products to comply with regulations and how to ensure you’re choosing the best fulfillment and shipping methods to keep your consumers coming back for more!

CBD Product Overview and Industry Growth

There’s no doubt that CBD products are experiencing a rise to stardom. There are plenty of options for CBD-lovers to choose from dog treats to makeup. Today, there aren’t many places that don’t carry CBD products in some form, and you’ll find them everywhere, including your local supermarket and gas stations.

Projected Growth of the CBD Industry

CBD is experiencing increased legalization and benefits awareness, and it’s not significant retailers alone that are cashing in on the CBD product boom. Local, smaller, brick-and-mortar retailers and plenty of eCommerce stores are also taking advantage.

If you currently own a retail store, whether your storefront is online or on the main street of your town, you should consider stocking CBD products. Here are a few growth statistics to convince you.

In the United States, the CBD market, in its entirety, is expected to reach $20 billion by 2024.

More than 25% of Americans have tried one or more CBD products, and out of that percentage, one out of seven uses a CBD product every day.

In 2019, Statista reported that 49% of consumers had bought CBD products in their local drugstore, while 47% took to the internet to make their purchase.

Based on these recent statistics, you can see how the CBD industry might be something to consider if you haven’t already. Since you’re here, we’re guessing that you have sold CBD products at one point or are preparing to launch an online store specializing in or featuring CBD products.

Breaking into the CBD Industry

Dipping toes in the CBD industry is tempting for pretty much every business owner, which is why you’ll find major clothing retailers like Old Navy stocking CBD-infused lip balm on their cash register counters. However, before you commit to your own CBD business, you have to do your research.

Because CBD is clearly more than just a trend, many regulations come with choosing to sell CBD products. It would be best to familiarize yourself with the legalities and safety protocols for shipping CBD products.

Defining CBD Products

Cannabidiol, known to most of us as CBD, is one of the active components in the cannabis plant. Over the years, many people have hailed CBD to alleviate many medical symptoms, from seizures to anxiety, while eliminating the THC (tetrahydrocannabinol), or the psychoactive compound in cannabis.

Before writing your product descriptions, you should know that the FDA will step in if your CBD-infused product claims to cure, treat or alleviate disease symptoms. Many CBD retailers make the wrong choice here, resulting in the inability to continue selling and possible fines. You can read more about FDA regulations here.

CBD products, also known as “hemp” products, are cannabis-derived products that contain less than 0.03% THC. These products are legal at the federal level in the United States, though you’ll want to check your state regulations as well. There are state-specific laws by which you’ll have to abide.

Ingredient List Regulations

If you plan to sell your CBD products to the public, and we’re assuming you do, you’ve got to comply with regulations pertaining to your ingredient list. Products that include hemp, much like alcohol, have legal limits regarding the number of certain ingredients present within the product.

When talking about CBD products, those quantity limits refer to THC. Some states within the U.S. require the amount of THC present in hemp products to be at 0%, and it’s essential to comply. In reality, your testing practices must be perfect regardless of where you live. As long as the CBD in your hemp products is under 0.03%, it is not considered a federally controlled substance.

NEXT WEEK: Preparing to Stock and Ship CBD Products

Now that we’ve given you a brief overview of the CBD industry and its expected growth and a brief concerning what you can legally distribute, we’ll begin next week to get you ready to stock and ship your CBD products safely. While CBD is legal to ship, there are certain factors you must keep in mind to ensure that you’re complying with the necessary protocol.

Shipfusion sets your business on autopilot and combines flexible, reliable fulfillment with powerful, real-time technology. Shipfusion has multiple fulfillment centers across the US and Canada– making it easy to manage your eCommerce business. For more information on how to set your business on autopilot, contact one of our fulfillment specialists today.