What is dropshipping?
The practice of dropshipping has been widely popularized by platforms such as Amazon or eBay. The idea is to put a customer in touch with a distributor, who then forwards the request directly to the supplier (or wholesaler). The wholesaler then produces and delivers the goods to the end consumer. The advantages are numerous: the distributor has no stock to manage, and can operate on a "just-in-time" basis. just-in-timeThere's no risk of product loss, and no need to worry about logistics.
Numerous businesses specializing in the sale of cannabidiol-based products have sprung up in France in recent years, taking advantage of a legal loophole that does not prohibit the sale of products containing less than 0.2% THC. However, with the law still undecided, some of them have had to face administrative closures. Drop shipping offers a pragmatic response to this complex issue.
CBD: a booming market in a legislative framework yet to be defined
Debates to define a legal framework for the marketing of CBD remain heated in France, and its storage still presents a significant risk for producers and physical retailers. If CBDunlike THC, is not banned in France, many have had their stocks seized in recent years.
As far as we know today, only the liquid form of liquid form of CBD for use in electronic cigarettes is legal. The purchase and consumption of smoking weed has not yet been regulated, with THC levels often above the permitted 0.2%. As for other products(oils, infusions, edibles...), it's all a blur!
As a reminder, cannabidiol is a molecule derived from hemp. hempIt is a non-psychotropic cannabinoid , unlike THC. Legal in many countries around the world, cannabidiol offers substantial therapeutic benefits, such as combating chronic pain, anxiety and insomnia. It can be consumed in edible oilsin chocolateinfusions or in cosmetics. However, despite numerous positive reports from consumers, no authority yet seems to have taken a position on its use. In short, the aforementioned products are not banned, but neither are they authorized...
CBD dropshipping enables distributors to avoid this kind of administrative headache while waiting for the government to take a real stand. It's worth noting that the signs are still very encouraging: indeed, the Court of Justice of the European Union has declared illegal the ban on the marketing of CBD products inFrance1. This heralds greater tolerance for wholesalers and confirms distributors in their right to operate.
Dropshipping: Optimizing skills, cancelling risks and sharing profits
As a result, a distributor using drop shipping methods need have no legal worries, and can safely start or continue his business. While they don't have to deal with inventory and delivery issues, they do have a number of duties to perform in order to run their business successfully.
The communication aspect remains important, and the creation of a website, management of e-reputation, social networks and customer relations are all skills that the producer cannot always provide. The distributor therefore provides this service, acting as the essential mediator between the wholesaler and the consumer: the showcase for the product he distributes. They earn a commission on the products they sell, without having to invest any money up front. The producer, for his part, concentrates on product quality and delivery . A win-win model!
In 2017, the American magazine Rolling Stone estimated that this market could reach $22 billion in the United States by 20222. Unlike France, the US allows THC for recreational use in several states, offering even greater growth potential in our country, where CBD faces less competition. Selling CBD via dropshipping therefore ensures income in a fast-growing market, without taking any financial risks. A real boon for budding entrepreneurs (no pun intended)!