How to Sell CBD Products Successfully & Accept Card Payments

CBD is and has been the hot new retail product in America. However, there are many ways to go about selling it, ways that HadePay Systems has identified as smart and not-so-smart to be successful. So in this article, we are going to identify the CBD industry’s growth, explain CBD, and determine the best (and worst) ways to sell CBD.

Finally, we will explore the cost of doing CBD business, the fact that no processor besides Square enables CBD-only payments — Elavon bans CBD payments. However, you end up paying 5% to 7% in processing fees with Square. There is a far superior way to process CBD payments with HadePay Systems that will cost you 2.5% at most. That difference is significant for your bottom line.

Cannabidiol, otherwise known as CBD, is extracted from hemp or from marijuana and is often used in the medical industry for the treatment of anxiety, depression, stress, diabetes prevention, and pain relief among other illnesses. As a result it has become one of the latest consumer trends with product options for skincare, cosmetics, haircare, and even lubricants for personal use.

Therefore, CBD products have become very common.The CBD market was valued at $4.6 billion in 2018 with an expected compound annualized growth rate of 22% through 2025 until surpassing $23.5 billion.

It’s no wonder that so many people and businesses want their hand in CBD.

One reason for its explosive growth over the next five years is because consumers are still being educated on the benefits. Furthermore, science is still attempting to prove the efficacy of CBD for treating disease and improving lifestyles. As consumers become more educated and scientific data proves efficacy, the industry will grow.

The industry itself is still small. Even in 2025, the industry will be small relative to other major consumer “niche” sectors. Take tobacco for instance. The tobacco market was valued at $850 billion last year, and alcohol amounts to more than $1.3 trillion!

Thus, if you hope to achieve success and “grow with” the CBD market, then you must have a business that directly relates to its growth…. and that growth is driven by “consumer awareness” and “scientific data”. Unless you own a clinical laboratory and are creating new, innovating ways to use CBD (manufacturer) then you fall in the consumer awareness category.

How to successfully sell CBD products

If you are an individual who is trying to convince your Facebook community to buy CBD products, or educate your friends about the benefits of CBD, you are going to have a hard time finding any level of success. The reason is simple: Every Dollar Store, convenience store, CVS, and Walgreens is selling CBD.

A person can learn about CBD from their friends on Facebook and then purchase when they get gasoline, or pick up their prescription, or buy milk. The key is to have retail traffic established, and then introduce your customers to a new high-margin product to create organic sales growth….. that is how you successfully profit from the growth of CBD.

Proof of Concept from HadePay Systems customers

The great thing about HadePay Systems is we have access to millions of small business data points.

This time of year pool stores are very busy, businesses that sell chemicals, supplies, and actual pools. We work with many such businesses, but one in particular made a conscious decision to stock other types of goods. Specifically, hunting, fishing, guns & ammunition, and other outdoor sporting supplies. As a result, this businesses revenue is significantly higher than those that focus on pool supplies only, and I suspect profits too because it drives traffic into the store and introduces shoppers for one product type to another.

The same logic applies to a convenience store we work with, who maximizes their space to sell Broaster Chicken, specialty ice cream, and other goods to boost foot traffic and increase dollars spent per customer.

Albeit, you, as the CBD entrepreneur, likely don’t have a convenience store or 5,000 square feet of retail space to fill. You don’t need it! To be successful, you do need something else. It can be shirts, makeup, health & wellness products, something that gives you a customer base to introduce your CBD goods.

Process CBD Payments for 2.5%

From a business perspective, it makes far more sense to sell CBD with other goods to increase foot traffic and introduce potential customers to the product. That is undeniable.

This business strategy is equally logical when looking at the bottom line implications of how to sell CBD effectively. If you sell CBD exclusively, your average ticket price is going to be low and therefore, your average processing fee with Square could be upwards of 7%! Why not sell others goods in your store and reduce your processing fee to 2.5% with HadePay Systems? Or, you can have your customer pay the processing fees to eliminate that cost completely.

The final takeaway is if you want to sell CBD products, sell it with other goods. This strategy will reward both your top and bottom line.