Medically Reviewed by
Jason Crawford

Article Last Updated on January 4, 2023

The legalization of industrial hemp with the 2018 Farm Bill has greatly influenced the growth of the cannabis industry. The variety of cannabis products has been steadily increasing as many people have started to take interest in the fruits of the cannabis plant. Tinctures, oils, edibles, concentrates, and topicals are only some of the products you can find on the market.

One such product which has significantly grown in popularity over the last few years is CBD oil. CBD (cannabidiol) is the non-intoxicating cannabinoid found in cannabis which is known for its therapeutic properties. Many people use it for general wellness, but it can also help with the symptoms of many medical conditions.

Due to the rising popularity of this cannabinoid, the CBD industry has been booming. Research shows that consumer sales have been consistently rising since 2018 and they’re expected to reach $1.8 billion by 2022, which is notably higher than half a billion in 2018. As you can see, the CBD market shows no signs of stopping.

For these reasons and more, a lot of people interested in the cannabis industry have been looking to start selling CBD oil products. If you’re one of them, keep reading, because in this article we’ll cover the basics of starting a CBD business.

Why Are CBD Products so Popular?

The hemp plant has been used by humans for medical and industrial purposes for thousands of years. Yet, until a few years ago, it was illegal everywhere in the world. Thankfully, as we learn more about its beneficial properties, the public has become more open to its uses (and are more curious). Therefore, the knowledge about the benefits of CBD is one of the main reasons for its increasing popularity.

Additionally, CBD oil, as the most popular CBD product, has helped people who don’t respond well to conventional therapy (in controlling their symptoms). You see, CBD has anti-inflammatory properties and it’s very well tolerated by most people. It can be prescribed in states where medical marijuana is legal as it can help with pain relief and symptoms of anxiety and chronic stress, among other qualifying conditions.

How to Make Money by Selling CBD Online

Selling CBD oil online is a very promising business opportunity, so no wonder many people are interested in starting a business. However, starting an online business isn’t just setting up an eCommerce store and finding a supplier, but it involves a number of aspects that need to be considered, so let’s see what they are.

Learn About the Legality of CBD Oil Across the States

If you want to sell CBD, the most important (first) step is to know the legality of CBD oil across the states. Industrial hemp is legal under federal law as long as it contains 0.3% THC (tetrahydrocannabinol), the psychoactive cannabinoid that gets you high. 

However, each state has its own state laws regarding the use and selling of CBD products (which mostly refer to the THC content present in CBD oil). Some states allow for higher percentages, while most don’t. Plus, in some states, CBD oil can only be used for medical purposes under the supervision of a doctor.  You can start your research by reviewing this updated map of marijuana legality in the US by state.

Secure Your New Business With a Licence

Obtaining a general business license is imperative when you’re starting a new business. Since you’re putting all that time and investment into starting something new, you want it to be legitimate (and to last). To be able to sell CBD oil in particular, you will also need to comply with your state’s licenses and permits that may include permits for stocking your CBD oil products.

You will also most probably need a reselling license if you choose to purchase from wholesalers. Therefore, you should do your research on your state’s requirements as they will be different from state to state.

Make Sure You Sell High-Quality Products

Due to the rising demand for CBD oil on the market, many counterfeit products have emerged that contain harmful ingredients, or don’t even contain any CBD. This makes the consumers generally more cautious about where they buy their products. Therefore, choosing certified suppliers and distributors is very important for selling high-quality CBD oil. 

Though CBD oil is not FDA-approved yet (except for Epidiolex, used to treat two rare forms of epilepsy), certified CBD companies often have their own hemp farms and provide a certificate of analysis that shows the results from third-party lab testing, which is proof of the authenticity of the product.

If you have space for inventory, you can store your CBD products and ship them from there, or you can try a different approach. A lot of suppliers also offer dropshipping and private labeling, which is also good if you want to build your own brand.

Launch Your CBD Oil Business

While having an online store is a must, you can also consider opening up a brick-and-mortar store where you live, if you don’t only want to sell CBD oil online.

As a retailer, opening up a physical store is of course a bigger investment and will require a lot more upkeep, but your CBD business can be just as lucrative if you choose to stick with eCommerce. Another plus is that you can reach a wider audience this way and ship your products to more states. 

To build your online store, you should find a platform that caters to your business needs, such as Shopify and WordPress. However, make sure that selling CBD products is allowed on your chosen platform.

The next step would be to come up with authentic content so you can generate traffic and attract more customers. It’s recommended that you update your content frequently so you can maintain your online presence.

Market Your Business

Finally, in order to get your business going and keep it thriving, marketing your business is a must. When it comes to CBD oil, you’ll need to pick your strategy carefully. Keep in mind that advertising on popular platforms like Facebook and YouTube (like what most companies do) is a little trickier for CBD. However, using social media as a tool for marketing by creating a profile on Facebook and Instagram, for example, will definitely bring you some visibility.

An even more important strategy for marketing your business is learning about search engine optimization (SEO), or in other words, all the ways you can get Google to rank your site higher in the search results. This will bring you organic traffic which will help your business grow and expand.

Conclusion – CBD Oil Business Can Be Lucrative When Done Well

Being a small business owner can be very lucrative if you do it well. This means learning as much as you can about the CBD business beforehand so you can start prepared. You can always pick up new things on the way to refine the way you do your business, but building it upon a stable foundation will set you up for success right from the start.

A passionate advocate for the benefits of cannabis. Fraser Horton, who has a background in botany and a strong love of nature, has spent years researching how cannabis affects the body and mind. He established Leaf Nation in 2020, where he has devoted himself to educating people about the legalisation of marijuana and its safe and responsible use. Fraser is committed to highlighting cannabis’ potential for improving wellness and working to dispel the stigma associated with its use.


The information presented on this page is provided as a public service to aid in education and is derived from sources believed to be reliable. Readers are responsible for making their own assessment of the topics discussed here. In no event shall Leaf Nation be held reliable for any injury, loss or damage that could happen if using or abusing drugs.