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Cannabidiol (CBD) is beginning to appear in all sorts of products, from snacks to beauty items. What is CBD, why is it so popular lately, and why does it pose a problem for CBD companies looking for a fulfillment center? In this article we help you with some up-to-date information about this fast growing product.
CBD is a compound derived from the cannabis plant. When people think of cannabis, they usually think of smoking marijuana and the mind-altering properties of THC, another compound found in the plant. CBD, while also present in marijuana, is not psychoactive, so it doesn’t make you feel “high.” For years, CBD has been touted as a source of relief from chronic pain, anxiety, insomnia, and depression, among other ailments.
CBD is currently available in lots of different forms. In its most pure form, CBD can be ingested in oil or vaped. CBD lotions and creams are applied topically to relieve pain or help heal wounds. And food products or beverages containing CBD (i.e. gummies, coffee, tea, etc.) make it more palatable and accessible to everyone. And CBD is so safe, there are even products marketed towards our pets!
It’s only in recent years that CBD is getting serious attention from the medical community. Lots of research is being done on the effects of this substance, and while science doesn’t have all the answers yet, the CBD industry is currently booming. Many companies see this as a great time to start developing and selling products containing CBD, but there are a few legal issues that they must contend with first.
The 2018 Farm Bill contained legislation that removed restrictions on CBD that’s been derived from hemp plants. This means that on a federal level, CBD products are legal to ship and sell as long as the products contain less than .03% THC. Anything with a higher level of THC is considered marijuana, which is still a schedule 1 drug in the United States and is, therefore, illegal to buy, distribute or possess.
Even though CBD is legal to buy under federal law, some states still have restrictions on possession of CBD and products that contain it. In some states, you need a prescription or a card from your doctor in order to legally possess CBD, while in others, it can’t be used legally as a food additive. Still, in other states, it’s classified as a food and it can’t make any claims about medical benefits. Each state has unique rules relating to the possession of CBD, which makes it a sort of legal gray area. This can be a big roadblock for businesses looking to start selling CBD products.
There are states that tend to be more lenient in terms of CBD sales – thus finding a fulfillment center is a more viable option in these states: Colorado, California, Oregon, Washington, Nevada, Alaska, Illinois, Michigan, Connecticut, Vermont and Maine. On the opposite end of the spectrum, these states tend to be much more limiting on CBD sales: Wyoming, Wisconsin, Iowa, Texas, Indiana, Kentucky, Tennessee, Virginia, North Carolina, South Carolina, Georgia, Alabama, and Mississippi.
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Many other countries allow for CBD sales, especially under 0.2% THC. Currently, these companies do not all CBD sales: United Arab Emirates, Russia, Malaysia. Some other countries, such as Australia, are very restrictive – so it’s important to check with each company you intend to sell in before initiating any sales effort to ensure compliance with all laws.
Just as the legality of CBD in the US is confusing, the shipping of CBD products via small parcel carrier is also difficult to understand. All US small parcel carriers are able to ship hemp products, but currently only three carriers do: UPS, DHL and USPS. Similar to the previously mentioned legal requirements, shippers must make sure that all hemp products contain less than 0.3% THC levels, shippers must make sure they are compliant with federal and state and local laws, and they are held to another standard: they must keep compliance documents for a two-year period. Furthermore, some carriers require that hemp and CBD products be shipped in cartons that DO NOT show what the contents are of the package.
It’s important to note that this industry is highly regulated and is subject to change at the federal, state and local levels. If your business operates in this industry it is imperative to stay informed regarding all of these changes.
Even though its legality is somewhat murky, now is a great time to get started in the CBD industry. Ecommerce entrepreneurs involved in selling or shipping these products should keep regulations in mind to make sure that their operation remains fully legal. If you’re looking to ship CBD internationally, you may run into a few issues as it’s still not legal worldwide.
Because of these legal restrictions, a lot of fulfillment centers are wary about fulfilling orders containing CBD. It’s important for business owners to find the right CBD fulfillment provider so they can provide great customer service. FulfillmentComapnies.net is here to help! We have a wide network of warehouses, so we know exactly which ones can help with fulfilling your CBD orders. We can get you in contact with the best fulfillment companies for your CBD products. Fill out the form in the right-hand sidebar of our website to request your matches and get quotes, or contact us for more information.
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