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If you’re reading this right now you’re likely an enterprising young person, a go-getter. Perhaps you’re looking for the next big idea to capitalize on. The biggest business idea in 2019 is the health and wellness trend that’s sweeping the world: CBD oil.
In the UK alone an estimated 6 million people have tried CBD oil. In fact, the market for this product is estimated to be about £300m a year, making it a larger market than the total UK Vitamin D (£145M) and Vitamin C (£119) markets combined.
But what exactly is CBD oil? And how can you capitalize on this growing trend in the UK?
What Is CBD Oil?
Cannabidiol (CBD) is one of more than 100 cannabinoids found in the cannabis plant. This compound allows users to benefit from the host of therapeutic properties cannabis has to offer without getting “high.”
Tetrahydrocannabinol (THC), another cannabinoid found in the Cannabis plant, is responsible for the mind-altering effects normally associated with cannabis. However, what makes CBD oil legal in the UK is the fact that these products contain less than 0.2% of this intoxicating substance.
5 Ways to Profit from CBD Oil in the UK
1. CBD Oil Affiliate Marketing
Affiliate marketers use their own websites and channels to generate sales for existing CBD oil companies. In the process, they earn a percentage of those sales as a commission. The most successful affiliate marketers review products on their YouTube channels, social media platforms, and blogs.
RELATED ARTICLE: AFFILIATE MARKETING: HOW IT WORKS AND HOW IT CAN HELP YOU
Affiliates in this niche can expect to earn a 10 to 20% commission on all the sales they generate.
2. E-Commerce Store
Starting an e-commerce store can have its ups and downs. Moreover, the CBD-oil industry has a lot of gray areas you’ll need help to navigate. For example, there is the EU’s Novel Foods Act. Further there are limits to the amount of THC products can contain. You’ll also need to find payment processors who will want to work with you.
Therefore, it will be a good idea to join an organization such as the Cannabis Trades Association of the UK. This group can help you to navigate the legalities of retailing CBD as well as sourcing trustworthy suppliers for your new store.
Then, once you’ve decided on the products you want to offer in your e-commerce store, you can register your company in the UK. Use Shopify or WooCommerce to quickly set up your an online CBD oil store. Typical margins in the CBD retail sector vary from 20 to 30%.
3. CBD Oil Digital Marketing
Merchants are currently not allowed to advertise CBD products on Google AdWords, Facebook and many other social networks. Therefore, organic SEO is the second most effective digital marketing tool for CBD, right behind affiliate marketing.
For this reason, there is a growing demand for digital marketing/SEO experts in the CBD sector, as hundreds of companies compete with each other on Google. Your tasks as an expert in this field will be to craft content aimed at answering consumers’ questions. Then, you will be expected to get that content to rank on Google, all while using organic SEO strategies.
A good example of this is CBD Shopy’s guide to the UK’s Best CBD Oils, which helps users answer the question, “Which is the best CBD oil I can buy in the UK?”
4. CBD Oil Private-Label Brand
If you have a private-label brand this means that you have added your own label or brand to an existing high-quality product. You’d be surprised to find how many manufacturers offer this service.
The advantages include lucrative margins, the ability to build loyalty to your brand, and the fact that you won’t be locked into recommended retail pricing.
Of course, there are disadvantages, too. Among them are questions consumers might have. These could include: “Why should I purchase your product, especially if I’ve never heard of it?” Or, “Why should I trust your brand?”
Therefore, you will need a fairly large marketing budget so that you can build your brand and establish trust among your target customers.
5. CBD Oil Distribution
Your goal as a CBD distributor would be to secure the distribution rights for highly popular US or EU brands or both, becoming the sole distributor for these brands in the United Kingdom.
Margins for distributors are typically low, ranging from 5 to 10%, but as CBD oil products are priced fairly high and you would be distributing high volumes of product, you would be able to turn a good profit.
For example, you could secure the right to brands such as CBDistillery or Charlotte’s Web, both of which are popular US brands.
A Final Word
Have you picked up some tips from this article about how to get involved and capitalize on the bustling CBD oil market in the UK? If so, get going on your new business idea.
Also, find more business ideas by browsing our blog.