Should You Bring Your CBD Product to Retail or DTC?

The popularity of CBD is on the rise, as people seek out its potential health benefits. As a result, there are more CBD products available than ever before. These products include oils, capsules, gummies, and topicals. There is still debate about whether products with low levels of CBD should be sold direct to consumers (DTC) or through CBD retailers.

Defining “Low CBD Levels”

“Low levels” of CBD refer to products with less than 0.3% THC, which are legal under federal law in the US but may still be illegal under certain state laws. THC is the psychoactive compound in cannabis. CBD levels can vary a great deal, and some products may only have trace amounts of CBD.

Retail

Retailing low-CBD products can increase access and exposure to potential customers. Health food stores, wellness centers, and grocery stores attract consumers interested in natural and health-oriented products. Making the product available in these stores can reach a larger audience who may not seek out CBD products but have an interest in trying them.

CBD retailers can also boost a product’s credibility and trustworthiness. Consumers may be more willing to try a CBD product if it’s carried by a well-known retailer. This is especially true for newcomers to the CBD market. However, products with low levels of CBD may be hard to differentiate from others on the shelf. Retailers may also hesitate to stock low-CBD products, as they may not be seen as effective or worth the price.

Direct to Consumer (DTC)

Selling low-CBD products directly to consumers through e-commerce has pros and cons. One advantage is greater control over marketing and messaging. Direct to consumer marketing allows brands to focus on marketing to interested CBD consumers and provide better education on product benefits. Pricing and packaging flexibility is also possible.

DTC brands can offer more competitive pricing and packaging options without a middleman. This is especially important for low-CBD products, which may be perceived as less effective and call for lower pricing. Attracting new customers who are not already searching for CBD products online can be challenging though. Building trust and credibility is also difficult in a DTC setting without an established CBD retailer backing the product.

Direct to Consumer vs. Retail

In the end, the choice between DTC or retail for low-CBD products depends on the product, target market, and brand goals. CBD retailers can provide more exposure and credibility but may not be able to communicate the benefits of a product. With DTC, greater control is possible but it is harder to attract new customers who are not actively searching for CBD products.

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