400m Hurdle Sprint in the Complex CBD Ecommerce Market
It’s the Olympics. The crowds have filled the stadium. The referee is in place, and you are ready to shoot out of your blocks when the gun rings. Ahead lie 10 hurdles. You’ve practised for years and know which strides to take where. Nothing can stop you now! Not so fast, Batman. They’re switching the hurdles around…
It’s a bit like running an ecommerce site in the CBD world. Just when you think you’re ready to run. Something shifts.
Ecommerce merchants were elated when new markets opened up, and they could start selling CBD products online. Unfortunately, it belongs to the wellness sector which is more regulated than many others. As if ecommerce doesn’t have enough challenges, CBD is regulated differently in every territory across the EU. Let’s navigate through CBD market complexities.
Hurdle one:
Regardless of different laws, CBD has to be approved by EFSA (The European Food and Safety Authority) before countries can decide how to apply EFSA rulings locally. In June 2022, the European Commission determined that CBD qualified as a novel food provided it meets the conditions of EU legislation on novel foods.
Hurdle two:
To complicate matters, the EU implemented a Transparency Regulation on 27 March 2021. The regulation aims to increase the transparency of risk assessment in the food chain and strengthen the reliability, objectivity and independence of scientific studies. It also aims to reinforce EFSA governance and ensure the Authority’s sustainability.
An article published by NutraIngredients Europe discusses the future of CBD products in Europe. According to Steffi Dudek, Senior Scientific consultant for http://www.a-r.com/, these are some implications of the Transparency Regulations.
The Regulation extends the first phase of validation from a few weeks to more than a year.
CBD extracts are not officially legally considered as food regardless of how they are packaged.
There might be a risk for both companies distributing and clients consuming these products at uncontrolled doses.
Regulators say one thing, and the market does another. Until legal action is taken, it will continue to be this way.
The scientific stance will not change because of market demand.
We suggest you read the original article published on the NutraIngredients European website to get the complete picture.
You might ask what the current status is regarding CBD beauty products. According to various reports published in June 2022 by Research and Markets, a respected market research provider, the debate on CBD in cosmetics is very much alive. It states; “ Indeed, it seems that the November 2020 Court of Justice of the European Union (CJEU) decision in the Kanavape case – stating that CBD should no longer be regarded as a narcotic drug within the meaning of the Single Convention on Narcotic Drugs of 1961 – has paved the way for a reconsideration of the EU Cosmetic Products Regulation (CPR) that is currently in force.” You can view the report here.
Hurdle three:
Yes but. No, but. Yes but …Imagine you’ve navigated your way past all the legal hurdles, and you sell CBD products on your ecommerce site; you still need to market them as well. Here comes hurdle number three: Google and Meta (aka Facebook) have restrictions on promoting CBD and hemp products in various territories. Legal and regulatory uncertainties in different countries across the EU can make it challenging for CBD merchants to effectively reach their target audiences through mainstream digital advertising channels. Merchants must explore alternative marketing strategies and platforms like Twitter and TikTok catering to the CBD industry. It’s impossible to list all the alternatives here. Search the countries you are operating in to find the most suited platform for your products.
The final sprint
Phew! You’ve made it around the course and navigated compliance, marketing and distribution of your CBD range. Now you have to get paid. Easy, right? Not so fast, Franco. Finding a reliable payment processing solution can be a challenge. Finding one that accepts CBD products is another story. Many processors consider CBD as high-risk clients.
Good news. Truevo payments are open to working with CBD businesses. We will assess each case individually to see if you comply. We’d love to welcome you to the world of effortless payment processing, where your money flows and business grows. We can deliver simple, secure online payment processing across Europe that just works. Why don’t you speak to one of our consultants here to see how one of our many payment options can work for your CBD business? We can’t wait to cross the finish line with you.
