The essentials for opening a CBD shop:
- It's legal: selling CBD in Spain is covered by European law. CBD flower and hash are sold as collector's items (not for consumption), and there is no single licence: it depends on the product and the type of business. In some countries, such as the UK, hemp flower is controlled even when its THC content is low.
- It's profitable, but it depends on the model: CBD has high commercial margins, although your profit will depend on the model you choose (dropshipping, your own brand buying wholesale, or a physical shop) and on how reliable your supplier is.
- You don't need a franchise: you can build your own brand by buying wholesale from a supplier with lab results and stock, without paying an entry fee or royalties.
In recent years, the market for CBD, or cannabidiol, has seen an unprecedented boom. High demand for these products has led more and more entrepreneurs to take an interest in starting a business selling cannabidiol products and opening their own shop, and we know plenty of questions can come up along the way.
Here we explain how to sell CBD legally, share tips for opening a CBD shop, and cover the legal and practical points for drawing up a CBD business plan. Our view of the business opportunity that CBD represents, and how to get started in this growing sector. We hope you find some interesting ideas here!
Is it legal to sell CBD in Spain? Know the law
Selling CBD is completely legal in Europe, but each member state has its own rules on these products. Spain is one of the worst countries when it comes to hemp regulation, because it has no specific legislation. This puts Spanish hemp and CBD operators at a disadvantage, although work is under way to resolve the situation. Fortunately, Spanish companies can sell CBD thanks to the protection of European law. The topic is covered in depth in:
As an important point, you should know that most European countries do not allow CBD products to be sold for internal consumption. That is why, in Spain, CBD flower and CBD hash are sold as collector's items, but cannot be sold for smoking. In some countries, such as the UK, hemp flower is controlled even when it contains very little THC.
Once you know the laws and regulations, you will find the way to sell CBD legally in Spain and in other member states.
Permits you need to sell CBD
There is no specific licence for opening a CBD shop, nor a permit that allows you to sell CBD; instead, there are different CBD products, and each one can fit into different types of business.
Currently, these products can be bought in herbalists, chemists, skincare and perfume shops, grow shops, tobacconists, hairdressers and beauty salons, physiotherapy clinics and even on Amazon. Get advice and use the permit that best suits the business model you want to open.
The 7 secrets to setting up a successful CBD shop
The title is pretentious: there is no recipe for success that works the same for everyone. Here we share some tips, based on our experience in our CBD Madrid and CBD Barcelona shops, and above all with our online CBD shop.
The first thing you need to sell CBD is a business plan in which you clearly define your target market and your values, explore trusted CBD suppliers, and cover the other key points we will talk about here.
1. The perfect product
If you want to get started in the CBD business, it is essential that the product you sell is perfect. By that we mean the high quality of the product, which is fundamental, but also its presentation (marketing) and availability (that you can restock quickly, with the same good quality and at the same price).
Offering products of the best quality at the best price is fundamental to keeping customers happy.
2. Trusted suppliers
A trusted supplier is key to long-term success in selling CBD.
When choosing between suppliers, the wholesale price of CBD products is not a good indicator of good or bad quality. The market is very varied, all the more so because it deals with plant products and different annual CBD harvests, or with derivatives such as hash, whose production techniques are largely artisanal. Many factors affect the quality of the final product, and it is important to work with suppliers who always guarantee the highest quality.
Your CBD supplier must also give you lab results for the flower showing that it complies with the maximum permitted THC levels, an essential legal requirement for distribution and sale. In addition, the flower must come from hemp seeds certified by the European Union.
All Cannactiva products come with the corresponding lab results, so you can sell CBD legally and safely in Europe.
At Cannactiva, one of our guiding principles has always been to sell high-quality wholesale CBD at the best price, with a friendly, professional service. You can easily get in touch with our wholesale customer service. We deliver all over Europe and can handle large quantities and urgent CBD orders. Whatever product you need and however much you want, we can get it!
We also provide free merchandise for you to give away to your customers.
Fill in the form and, once your application to register as a CBD business has been approved, our specialist team will contact you and send you the catalogue and wholesale prices. You will also be able to buy CBD in bulk.
CBD oils also differ in the type of extract and how effective it is, and you can't go by the wholesale price. Full spectrum CBD extract is the one that offers the most benefits, but there are other types of CBD oil that are less effective and sometimes priced similarly to full spectrum. Visit the Guide to buying CBD oil to find out more.
There are also CBD products on the market with unregulated synthetic cannabinoids, such as H4CBD and HHC, which are found in CBD flower (the bud is sprayed with these chemicals), in hash (they are mixed in during production) or in e-liquids. At Cannactiva we do not work with this type of chemical; we prefer natural, high-quality cannabis.
3. Product catalogue
- CBD flower: Hemp buds, a non-psychoactive variety of cannabis with a high CBD content. There are different strains and growing methods (indoor, outdoor and greenhouse), and customers appreciate being able to choose between different cannabis aromas.
- CBD hash: These are flower derivatives that concentrate the trichomes, which are rich in resin. There are different types of hash depending on the extraction technique used.
- CBD oil: Hemp oil enriched with CBD. It comes in different concentrations to suit every need.
- Physiotherapy CBD creams: Products with a soothing effect, well established on the market and in high demand among sportspeople and people in pain.
- CBD skincare: Serums, moisturisers, body oils and lotions with CBD that are revolutionising the beauty and body care sector thanks to the benefits of CBD for the skin. If you're interested, ask for samples with your order at Cannactiva. There's also CBD toothpaste.
4. Business model
If you want to start selling CBD, it's best to know the different business models you can use to start your shop selling CBD and hemp-derived products.
The 3 best-known business models are:
- Dropshipping (online sales): This business model involves selling third-party products without holding stock or managing inventory. You open an online shop and display third-party products, and when you receive an order, the supplier handles the packaging, stock and delivery. This is the business model that requires the least initial investment; make sure you have a good marketing strategy to succeed. (See Cannactiva's CBD product dropshipping service)
- Online retail: This business model involves buying CBD products wholesale and selling them under your own brand. It requires more initial investment, as you manage your business's inventory and deliveries. (See Cannactiva's CBD wholesale services).
- Physical retail: To sell CBD products in a physical shop, you need commercial premises to open your business and start selling CBD products. With this business model, you need a supplier so that you can buy CBD wholesale. At Cannactiva we have top-quality products at affordable prices; get in touch if you want to sell with Cannactiva.
Selling CBD is much more than filling the shelves of a physical shop or launching an online shop. The choice of type of CBD products, how they are presented, product knowledge and the shop staff's ability to connect with customers and answer their questions makes a big difference compared with the competition.
5. Website
Choose a mobile-friendly web design and check that the website is easy and comfortable to use on these devices.
Keep your website up to date with relevant information and optimised for SEO (search engine optimisation). Make it easy to get in touch through the website, for example with WhatsApp buttons, a phone call option or contact forms.
Put your whole product catalogue on an e-commerce platform, such as WooCommerce or Shopify, which make it easy to build an online shop in a few simple steps. Take care over the user experience and the content of your product pages and the other pages of your online shop to increase your conversion rate and improve your search rankings.
Communicate in an original, truthful way, and don't use text written by robots. Having a blog with your business's news can help you get your products known.
6. Marketing strategy
Consider using loyalty schemes, such as gifts, discounts and exclusive offers for regular customers.
Start building your database of your customers' or potential customers' names, phone numbers and email addresses from day one, so you can send them personalised messages with offers and information relevant to them. For example, in Cannactiva's physical CBD shops we have a QR code on display so people can sign up to the newsletter by scanning it with their mobile. Choose a program to manage your marketing communications (there are hundreds, at different prices and with different features).
Look after your online presence. List your business in directories such as Google Maps and provide up-to-date information on opening hours and days. Engage with your customers' reviews and comments.
Look into possible advertising channels, such as the press, radio, Google Ads, partnerships with related local businesses, or running workshops of interest to your customers. Tripadvisor can help you attract more customers.
Sign up to the social networks you think are appropriate, but don't forget that personalised marketing is better (emails or text messages to known customers) than a blind ad or an Instagram post. Also bear in mind that Meta (Facebook, Instagram) does not allow ads for CBD.
Talk to a professional if you have questions about your marketing strategy.
After all that marketing craft, the potential customer walks into the shop. They may be curious about different aspects of cannabidiol. What's the difference between hemp and cannabis? Can I be fined for carrying hemp buds in the street? Can CBD cause a positive drug test? What are the benefits of CBD? On the Cannactiva blog, we help you stay informed.
7. Delivery times
If you have an online shop, the courier and its quality of service are extremely important, as they are fundamental for customers to receive CBD at home quickly, safely and hassle-free. There are many options; choose the one that suits you best. We know of a CBD shop in a small village where the owner does the deliveries in person, by bicycle.
Is opening a CBD shop profitable?
Yes, on the whole the CBD business is profitable and still growing, although whether it is profitable for you depends on how you set it up.
CBD stands out for its high commercial margins compared with other retail sectors, especially for CBD flower and CBD hash. But gross margin is not profit: you have to deduct premises, stock, delivery, marketing and taxes.
The initial investment varies widely depending on the model: dropshipping requires the smallest outlay (you don't buy stock upfront), selling online under your own brand means investing in inventory, and a physical shop adds the cost of the premises and fitting them out.
The keys to real profitability are customer retention (a happy CBD buyer comes back), average order value, a good location or online presence, and a reliable supplier who guarantees quality and restocking. Like any project, a CBD shop takes an investment of time, effort and consistency.
CBD franchise or building your own brand?
Many people who want to open a CBD shop consider joining a franchise. It is a valid option, but it is worth knowing both sides before you decide.
A CBD franchise gives you an established brand, training and a proven model, in exchange for an entry fee, recurring royalties and little freedom to choose your products, prices or suppliers.
Building your own brand by buying wholesale gives you full control: you choose your catalogue, your margins and your supplier, with no entry fee or royalties, and you scale at your own pace. The trade-off is that you build the brand from scratch.
For most small and medium-sized projects, building your own brand with a good wholesale supplier is more flexible and profitable in the long run. At Cannactiva, that is exactly the model we work with: we supply you with wholesale CBD products with lab results, consistent quality and stock, so you can set up your shop with your own identity. You can register as a wholesale customer and receive our catalogue and prices.
Where to sell CBD and become a victim… of your own SUCCESS?
There is no definitive answer as to where it's best to sell CBD. Study the location of the premises and analyse the market: the number of CBD shops in the neighbourhood and in the city, the kind of people around, the type of shops and businesses nearby, whether it has good public transport links, and even the results of possible online searches related to that location.
Obviously, in a city centre you will have more visibility and potential customers, but we don't recommend choosing from a map: visit the area, have a coffee in its cafés, go and meet the local shopkeepers, watch the people walking by and see what events are held nearby, and do it on both weekdays and bank holidays, to get a complete picture of the place.
How can you sell CBD online 100% legally?
Not all online payment gateways and banks allow the sale of cannabis products. While you are likely to have few problems with the card machine or point of sale in your physical shop, e-commerce is a different story.
Selling CBD online has an added complication: very often, most banks cancel the service when they visit your website and see that you sell CBD online. We can't recommend companies, because it's a complex and complicated matter. One solution is CBD dropshipping (possible with Cannactiva).
Another option is to look for alternative payment methods, such as cash on delivery through the courier (for a fee), or direct bank transfer. Put your questions about online payments to an e-commerce professional.
How can you sell CBD wholesale?
If you want to sell CBD wholesale, it's because you have access to legal, high-quality CBD harvests. We recommend going to the conferences and events held around Europe for hemp professionals, to contact companies and build a network that brings you closer to the wholesale cannabis market. For example, through the EIHA (European Industrial Hemp Association).
In conclusion...
Hemp has arrived to revolutionise, once and for all, the way people see CBD cannabis. There is growing demand for these products, and it's a rapidly expanding market.
At Cannactiva, we have been working in the sector for years and know first-hand the best-quality products produced in Europe, so if you're thinking of selling CBD, don't hesitate to get in touch.
If you have any more questions about selling CBD, we offer personalised wholesale customer service. Fill in our wholesale form and our specialist team will get in touch with you.
Once your application is approved, we will send you the catalogue with our bulk and wholesale offers and our wholesale CBD prices. We'd love to hear your ideas and learn about your project!
We hope we have been able to plant a few interesting ideas in the garden that is starting a CBD business. We wish you every success with your project! Thank you for trusting Cannactiva, and we hope to be with you through your successes for many years to come.
