{"id":11586,"date":"2020-12-17T05:53:23","date_gmt":"2020-12-17T13:53:23","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/?p=11586"},"modified":"2021-05-25T06:15:37","modified_gmt":"2021-05-25T13:15:37","slug":"shipping-fulfillment-tips-cbd-brands","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/fulfillment\/shipping-fulfillment-tips-cbd-brands\/","title":{"rendered":"Shipping and Fulfillment Tips for CBD Brands"},"content":{"rendered":"

When building a CBD brand, don\u2019t overlook shipping compliance and fulfillment.<\/span><\/p>\n

It\u2019s estimated by 2025, the US CBD market could reach <\/span>$16.8 Billion<\/span><\/a>, a massive jump from the projected $4.7 billion in 2020. The CBD industry has exploded in a relatively short time, mostly due to the change in classification of certain types of CBD from the Hemp Farming Act in 2018.\u00a0<\/span><\/p>\n

With growing evidence of health benefits from CBD products and an increase in consumer acceptance, CBD sellers have been diversifying their sales channels, including ecommerce, dropshipping, and retail channels, to meet consumer demand.<\/span><\/p>\n

Like with any other wild west market, the rules and regulations surrounding CBD can be unclear, creating confusion amongst sellers. Not only should the seller have a clear understanding of the CBD laws, they should also have a good fulfillment strategy to ensure a seamless customer experience. Oftentimes, CBD sellers will outsource their fulfillment needs to a dedicated fulfillment company, also known as a <\/span>3PL<\/span><\/a> or third-party logistics provider.<\/span><\/p>\n

It\u2019s so important to have sure footing when building a business. As a seller it\u2019s imperative that you know how to legally ship CBD, choose the carrier that is best for your product, and find a quality\u00a0 fulfillment partner best suited to your customer\u2019s needs.<\/span><\/p>\n

Is CBD legal to ship?<\/span><\/h2>\n

The short answer is yes. However, there are important guidelines sellers need to understand and follow. CBD must meet the following criteria in order for it to be considered legal and shippable.\u00a0<\/span><\/p>\n

The CBD needs to be hemp derived and contain less than <.03% THC\u00a0<\/b><\/p>\n

Under the Hemp Farming Act of 2018, legal CBD is defined as a cannabidiol derived from strands of hemp with less than 0.3% THC. This classification of CBD is legal in all 50 states and can be shipped across state lines.<\/span><\/p>\n

CBD extracted from marijuana can only be legally sold in some states and has different regulations than hemp derived CBD. As of November 2020, the total number of states that have legalized recreational use of marijuana stands at 15.<\/span><\/p>\n

The seller must work with a licensed grower and producer of CBD<\/b><\/p>\n

The seller is obligated to have the necessary documentation that demonstrates they are working with a licensed CBD grower and producer. There are large, reputable wholesalers in the US and Europe who have years of experience growing and selling hemp so providing this documentation should be standard practice.<\/span><\/p>\n

Third party verification of the CBD<\/b><\/p>\n

The seller must provide a certification of analysis (COA) which confirms the level of CBD, THC, and other compounds in the CBD product. This certification must be conducted by a third party and the seller must accompany all batches purchased from the CBD grower and producer. The COA report will ensure your customers are receiving a purse product that contains exactly what is on the label and is advertised.<\/span><\/p>\n

Which carriers will ship CBD and how do their rules differ?\u00a0<\/span><\/h2>\n

Immediately after the Hemp Farming Act of 2018 was passed and the doors to legally sell CBD opened, the shipping companies, including USPS, UPS, and FedEx interpreted the laws in different ways leading to confusion for both the sellers and employees at the shipping companies. As a result, packages containing CBD were seized, accounts were frozen, and businesses were disrupted.\u00a0<\/span><\/p>\n

Fast forward to 2020, the shipping companies have a much better grasp of the CBD laws and defined clear rules around shipping CBD through their networks.<\/span><\/p>\n

USPS<\/b><\/p>\n

Using the United Postal Service to mail CBD is relatively straightforward and as of June 2019, the seller can ship using USPS if they meet <\/span>these conditions<\/span><\/a>:\u00a0<\/span><\/p>\n