Vancouver-based CannaOne Technologies (CSE:CNNA) announced Wednesday it launched one of the first CBD-focused online marketplaces called the “BWell Market” that will cater to U.S. customers and try to cash in on the CBD buzz.
According to the website, all of the CBD products sold on BWell are derived “from a special breed of therapeutic hemp grown on licensed US farms.” This means the products will contain less than 0.3 per cent THC and can be shipped across all 50 U.S. state lines without violating federal law.
CannaOne says so far it received 11,000 customer sign-ups looking to buy nearly 100 individual CBD products. By being one of the early movers in the online CBD market, the company hopes to gain an advantage the segment continues to rapidly grow.
According to a new report from cannabis insiders Brightfield Group, American CBD sales will reach US$5 billion this year, a 700 per cent jump from 2018 sales.
We are truly in on the ground floor level of this rapidly growing CBD revolution in America and we’re now ready to compete as a dominant player in this online space
The company plans to retain customers and grow sales by using its newly implemented rewards program.
Education and CBD research
The BWell Market also offers an education component on the website to track the emerging research surrounding the wellness properties of CBD.
The U.S. Food and Drug Administration (FDA) recently published a consumer update on its website warning Americans that the CBD cannabinoid may not be completely risk free nor a cure-all supplement.
“There are many unanswered questions about the science, safety, and quality of products containing CBD,” the agency wrote.
The FDA is currently assessing the substance’s safety, manufacturing, product quality, marketing, labeling and sales and is taking public comments until July 16. The agency approved the CBD-containing drug Epidiolex for treating rare seizure disorders, but if it gives the compound the green light for widespread use, companies in the CBD space are salivating and expect massive sales will follow.
Opportunity to provide third-party services
By providing other cannabis growers with its experience and expertise, CannaOne hopes it will help further drive sales. In the company’s press release, Riby-Williams highlighted just how CannaOne looks to provide solutions for other companies:
“The Company is now well positioned to provide third party providers, a premium turnkey technology solution for their CBD products that not only supplies them with products, but educates and engages their community from the ground up,” he said.
Our immediate goal is to “cookie cutter” this process and launch more marketplaces in other countries around the world.
Those are lofty goals for CannaOne. But for a company that has only reported sales of just over $93,000 for the six months ending April 30, it still has much to prove before it can lean on its credibility. Of course, it only has began generating sales with its new online portal since June 24, so revenue figures should start looking much brighter.
Is online the best option for consumers?
Both in the illicit and legal markets, online cannabis shopping has been evolving along with the fast-moving industry. But in Ontario, Canada’s largest market for pot, digital cannabis has proven to be less than optimal.
Unless a company is offering home delivery, there might be a lack of incentive for a customer to buy CBD online. Especially in U.S. states that have a larger number of dispensaries, consumers may want to avoid shipping costs and prefer a physical store option for its convenience.
But as interest for CBD keeps growing and reaches rural communities, an online option to buy the vaunted wellness product could be a potential gold mine.
CannaOne might be one of the first websites to be focused solely on selling CBD, but it will take time to see if there’s enough demand to make it a winner.