In an unprecedented and unexpected manner the novel coronavirus pandemic, and associated COVID-19 disease, has severely impacted what was once a flourishing global economic climate due to social restrictions and lockdowns affecting employment and preventing foot traffic at many brick-and-mortar stores.
If you’re a wholesale CBD buyer who has been thinking about ways to give your business a boost during the current health crisis or thinking about starting out, now might be the right time to consider an online model to provide additional revenue streams, which may allow you to maintain or grow your business safely during today’s difficult crisis.
The silver lining in all of this may be the growing demand for wellness products such as hemp-derived CBD oils, edibles and tinctures, along with the recent overall 25 percent jump in online sales due to the COVID-19 crisis. That one-two punch could provide a window of opportunity for you to start dropshipping CBD oil products and boost your bottom line during current tough times and beyond.
Dropshipping can be a powerful tool helping you build your ecommerce brands as long as you know what is involved. Here is a little background to illustrate how to get started and what to expect.
What is Dropshipping
Dropshipping is a retail fulfillment method whereby your store doesn’t keep the CBD products you sell in stock. Instead, you sell the products to your customer and pass the order on to a third-party wholesale supplier such as Oliver’s Harvest, who seamlessly ships the order directly to your customer as if it came from your business itself.
This can make the dropshipping model very appealing to smaller retailers or home-based online businesses because of the opportunity to offer lots of different hemp oil and hemp oil-infused products directly to customers without having to stock any inventory whatsoever.
In addition, with more and more sales transactions being conducted online, it provides a more efficient and safer way for your customers to buy CBD products without unnecessarily exposing themselves to the risk of getting sick with COVID-19.
Why Dropship Rather Than Sell Online Directly?
You don’t have to look hard to find articles about the latest success stories of folks who quit successful corporate gigs and now run online businesses from mobile devices, while sipping a cold drink on a sandy beach. Truth is those stories sometimes happen but are not the rule.
Running an online CBD business takes lots of organization and dedication as well as some level of business savvy and product knowledge. Incorporating dropshipping takes away lots of the day-to-day headaches, and risks, of storing slow-moving inventory out of the equation and may help contribute to business sustainability ― especially now that COVID-19 has all but halted foot traffic in most retail stores.
If you’re thinking about incorporating dropshipping into your online sales strategy, here are some of the main draws of using a wholesale partner to support your business goals:
Low starting cost. Start selling CBD products without investing any money in retail space or worrying about overhead costs associated with keeping large amounts of inventory on hand. All inventory is stored at the wholesaler’s warehouse.
Keep more cash in your pocket. Since you’re not stocking CBD products in the store, you don’t pay for it until after you’ve sold to your customers. And since you’re not keeping inventory onsite, you likely require fewer employees to pack and ship products, and run your business, which boosts your bottom line.
Safer option during a health crisis. Thanks mostly to COVID-19, retail sales during March 2020 dropped by almost 9% as a domino effect of store closures took hold. Selling hemp extract products to your customers online is much safer than managing social-distancing policies at a brick-and-mortar retail location. It’s a win-win for your customers who can shop safely from their homes. Since customers are not physically shopping at your store, the worry about daily sanitizing and protecting your employees is null.
Scalability. Test products and add or remove new ones quickly without worrying about ordering in bulk and keeping large amounts of slow-moving inventory on hand, which ties up valuable time and capital expenditure.
Increase customers. The ability to add a wide variety of CBD products to select from online will keep your existing customers engaged to see what new products you’re offering ― and new customers excited about your product lineup. With a dropship program, you can focus on offering a great customer experience online rather than worrying about logistics.
Expand into new markets. Partnering with a trusted wholesale vendor could be advantageous when trying to expand into domestic or international markets, which can be logistically costly and challenging. Since you don’t have to worry about inventory or shipping, you are free to crunch numbers that shed light on where your emerging markets are and what products customers are interested in buying from you.
Protection against seasonal market fluctuations. The dropship model may help retailers and suppliers combat inventory distortion. You can cut costs during seasonal troughs in the sales cycle by not having unsold inventory taking up space. When holidays and other peak shopping periods increase demand for CBD products, you can rest assured that demand will be met by your wholesale partner, who is there to support your sales volume with adequate supplies of inventory.
How to get Started
When you decide to include dropshipping into your sales strategy, you’re entering into a business relationship with a supplier, so it’s important to choose one with a great reputation for offering premium CBD products, first-class customer service and reliability.
Start by contacting a respected CBD wholesaler such as Oliver’s Harvest who will guide you by providing A-Z turnkey support on starting a dropship program at your business. Fill out an online application. From there, you’ll receive instruction on how to place images and product descriptions on your website so you can start selling premium hemp extract and high-quality edibles and tinctures to your customers.
If you think dropshipping will complement your online business model make sure to do some research as to what CBD products fit well into your sales strategy, market conditions and your customer base. In addition, since profit margins generally come from the difference between what the CBD wholesaler charges you and what price you sell your products for, it’s also a good idea to research the prices your competitors are selling hemp oil products for and how they market their products.
For more information about adding a dropship model to your online business, or about CBD products in general, click here.