Health Canada oversees the production of cannabis products. Health Canada is also responsible for overseeing the distribution and sale of:
It was not legal to produce, sell, import or export CBD unless authorized for medical or scientific purposes.
Growing cannabis plants containing CBD for commercial sale
Under the Cannabis Act, CBD products remain strictly regulated and are only legal when sold in compliance with the Act and its regulations.
CBD and products containing CBD, such as cannabis oil, may only be sold by a:
NHPs and VHPs may only contain parts of the cannabis and hemp plants that are not considered cannabis under the Cannabis Act or that are excluded from the application of the Act. This includes things such as:
In a land where it’s difficult to market CBD using a lot of popular methods (as Facebook Ads, YouTube Ads, and other common ecommerce marketing channels ban these products from their advertising platforms), there are still two viable options that have the potential to bring in a lot of profit if you play your hand right.
As selling CBD becomes more widely accepted, you may eventually be able to sell internationally, ship to other countries, and build out an international shipping strategy. In the mean time, don’t ship products to destinations where they’re not allowed.
“We place considerable expectations and pressure on shipping so we can get close to what Amazon does. With ShipBob, 100% of our orders are going out via 2-day shipping. We see that people are far more likely to order and keep ordering from us when 2-Day Express Shipping Program is an option.” Andrew Hardy, COO of Nature’s Ultra
5. Fulfill and ship customer orders
Now that your website is live, it’s time to bring in the buyers. You might think the “build it and they will come” mantra rings true here. Sorry to say, that’s not the case.
You’ll want to find a reputable supplier that will sell you high-quality products (such as tinctures, oils, hemp products, and more) and is also certified to sell by the state or federally. They’ll also need to get regular tests performed by third-parties to make sure the quality is assured and you’re selling quality products. Many CBD companies have their own hemp farms.
Once you’ve dialed in your legal allowances, it’s time to start setting up shop. There is a simple game plan you can follow to get set up and start selling online. From there, you can start refining your product, marketing, and ecommerce fulfillment strategies to grow your business.
In a saturated market, you must consider your competitors. Think through the following:
Penalties for violating these prohibitions include a fine of up to $5 million or 3 years in jail.
The Government of Canada has committed close to $46 million over the next five years for cannabis public education and awareness activities. These are to inform Canadians, especially youth, of the health and safety risks of cannabis consumption.
Statistics Canada reports that in 2017, almost 48,000 cannabis-related drug offences were reported to police. The majority of these (80%) were possession offences. A criminal record resulting from a cannabis offence, even a minor possession charge, can have serious and lifelong implications for the person charged. In allowing the production and possession of legal cannabis for adults, the Act helps keep Canadians who consume cannabis out of the criminal justice system, reducing the burden on the courts.
Restricting promotion and enticement
No person may sell or provide cannabis to any person under the age of 18. There are 2 criminal offences related to providing cannabis to youth, with maximum penalties of 14 years in jail:
The current regime for medical cannabis will continue to allow access to cannabis for people who have the authorization of their healthcare provider.
This means, for example, that an adult 18 years of age or older, can legally possess 150 grams of fresh cannabis.
The Federal government’s responsibilities are to set: