Starting a cannabis dropshipping business might be your one-way ticket into the profitable industry.
So you’re looking to start a business, and maybe one that doesn’t require a whole lot of background work. Lucky for you, in this day and age where the internet reigns supreme, there are countless business endeavors you can try while staying within the legal framework of the government’s federal stance on cannabis. Enter dropshipping, the new business method that makes selling a product a whole lot easier.
First, let’s help you understand what dropshipping is. The seller (you) does not have a stock full of owned inventory ready to sell. Instead, the seller acts as the middle man between the supplier and the customer.
Most suppliers are wholesalers or manufacturers, and the seller will purchase inventory from the supplier based on how many orders they receive. So, instead of already owning a ton of products, the seller would purchase a product from the supplier when a customer orders it.
You might be wondering, “Why haven’t I thought of this yet?” Dropshipping is becoming one of the most sought-after retail models by entrepreneurs looking to make fast money that’s far easier than opening a brick-and-mortar retail location. When looking at the cannabis industry, most consumers tend to browse the internet and purchase products through online dispensaries.
Would it surprise you that not a lot of these sellers actually own their inventory? Similar to any form of retail dropshipping, a cannabis company does not have the responsibility of packing and shipping items, which allows businesses to put more time and effort into other areas. This means cannabis businesses also don’t need to run operations in a massive warehouse, pay rent for their facility, ensure fresh inventory, or hire extra employees to handle shipments.
It’s worth noting that selling cannabis online in the United States can be tricky, considering the plant is still federally illegal. But hey, CBD isn’t! If you live in a state where cannabis isn’t legalized for recreational use, basing your dropshipping business off CBD products will help keep you in the legal realm. If you’re in a weed-friendly state like California, Oregon, Colorado, etc., and want to sell THC products, ensure you’re only selling to customers within your state lines.
Starting a dropshipping business is a lot easier than it may seem. The first thing on your list is creating a website to conduct business. Next, you must create some hype around your brand, and you can do so with these tips.
Finding your products is incredibly straightforward; simply look up a cannabis product with the word “dropshipping” at the end, and you should find company catalogs that offer the products you’re looking for.
Contact the company and create a contract or agreement while asking questions like “What are the lowest rates for which I can advertise your products?” A.k.a, the minimum advertised price (MAP).
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