How to sell CBD in a physical shop?

For the past few years, CBD (cannabidiol) has been a huge success that has not failed to reach the UK territory. Thanks to its multiple health benefits, CBD is appealing to more and more consumers looking for a natural alternative to soothe their ailments.

This growing interest in CBD-based products can be seen in the massive opening of specialised stores and shops across the country. That said, it is important to know that there are a number of standards and rules that must be met to legally sell CBD. In this article, we invite you to find out how to sell CBD in a physical shop in the UK.

Amsterdam-style coffee shops strictly prohibited

Before we get into the nitty-gritty, it seems interesting to revisit the image of the CBD shop that we have in our heads. Indeed, some people wishing to open a CBD shop imagine that shops in the UK can be identical to what is done in some countries like the Netherlands. Except that in the Netherlands, the consumption of THC (tetrahydrocannabinol), the psychoactive molecule in hemp, is authorised. Strictly forbidden by English law, THC can therefore never be sold in your shop, let alone consumed and smoked on the spot.

The CBD shop in UK and Europe is a shop where you can buy many CBD products such as flowers, resins, crystals, oils, e-liquids, food products or even cosmetic products. All CBD products must still contain less than 0.2% THC to comply with the law and only people over 18 are allowed to buy them.

All you need to know about selling CBD in physical stores

When it comes to selling CBD in the UK, strictness is the order of the day. But if you respect the law, you have no reason to fear any sanction.

What are the prohibitions related to the sale of CBD?

Let's start by talking about the prohibitions associated with this business activity. The first thing you need to know is that your CBD products must comply with a THC content always below 0.2%. There are some discussions to increase this to 0.3% but for the moment nothing has been voted on yet. It is therefore absolutely necessary to stick to this 0.2% THC content, regardless of the form of the product you choose to put on sale.

The second important rule to follow to avoid getting into trouble with the law is to never falsely advertise or entice customers to use CBD by presenting it as a miracle cure. Although CBD has many therapeutic virtues, it is in no way a medical treatment and does not cure any disease. This false information is unfortunately passed on by unscrupulous sellers.

Please make it a point to give the right information and not pass off CBD as something it is not. CBD can be taken as a dietary supplement to reduce stress and anxiety, to ease certain pains or to fight against sleep disorders.

Finally, you need to be aware of the forms of businesses that are allowed to offer CBD-based merchandise for sale. There are 6 of them, which are:

• a specialist shop;
• an e-commerce site;
• a shop;
• a service station;
• a concept store;
• a convenience store;

How to choose a CBD wholesaler;

There are many restrictions and standards to follow imputed to pCBD growers in Europe and more specifically in the UK. These restrictions are numerous and not always respected. It would be counterproductive, every time you source goods, to check that each producer respects these rules. This is why we advise you to buy from a reputable wholesaler with a label or accreditation specific to this activity. This is an excellent guarantee of quality for the goods, but also a certainty that everything is manufactured in strict compliance with the law.

How much money should you budget to sell CBD?

The budget needed to open a CBD shop is going to depend on several factors such as the location of the shop, its size, the number and variety of merchandise you want to offer, the number of your employees, etc. To open a proper CBD shop and start selling, a budget of between €50,000 and €150,000 should suffice.

How long does it take to make a CBD shop profitable?

Again, this depends on your investment budget as well as other factors. It is estimated that the average net profitability of a CBD shop is 18%. Let's take the example of an initial investment of €100,000: 18% of this amount is €18,000. 100 000/ 18 000 = 5.5. So it will take about 5.5 years to recoup your investment. Once again, these figures are only averages. It will all depend on how serious you are, how thorough you are and how much you invest.

How to maximise your profitability

Of course, the seriousness of your approach also involves maximising the actions that allow you to be competitive and attractive in the CBD sales market. Thus, you must think about taking care of the decoration of your shop, order the products well and propose a wide variety of them in order to reach a maximum of consumers.

You must also invest in the marketing aspect by having a constantly maintained and updated website and by being present on social networks. This is essential to get the word out about your business and maximise your profitability.