As the first-ever online platform for private-label skin care and beauty products, Onoxa understands the importance of staying on top of industry trends.
We recently introduced four new CBD-infused skin care formulas, each made with 300 mg of CBD isolate each and zero THC, to our lineup of high-end beauty products:
- Hydrating Face Moisturizer with CBD: Daily moisturizer for intense skin hydration
- Detox Nightwear Cream with CBD: Powerful lavender cream to restore a youthful glow
- Detoxifying Charcoal Mask with CBD: Triple-action, nourishing clay mask to gently cleanse the skin
- Perfect 10 Oil Cleanser with CBD: All-natural, balancing oil blend that melts away impurities
Our Farm to Label CBD™ compliance program ensures all of our U.S. farms comply with state and federal guidelines for growing and extracting hemp-derived CBD. In addition, all products are third-party tested to ensure purity, potency, and safety, and each includes a CoA to demonstrate quality and efficacy.
What are the beneficial properties of CBD?
Cannabidiol, or CBD, is a non-psychoactive compound of the cannabis plant. According to a growing field of study, CBD offers numerous health benefits, including its role in supporting healthy skin.
According to Dr. Tina Alster in an article published recently in Dermatology Times, CBD has natural properties that help promote the appearance of clearer, healthier-looking skin. It has also been shown to support skin hydration and healthy oil production.
Evidence that CBD promotes skin health, coupled with consumer demand for safer, more natural health and beauty products, is why CBD skin care formulas have seen a recent rise in popularity. What does that mean for health and beauty retailers?
If you are a spa, salon, or boutique owner and you currently sell branded products in your brick-and-mortar location or online, adding a CBD skin care line is a lucrative move. However, there are a few important things to take into account before you get started.
What should retailers know about selling CBD?
First, you’ll need to adhere to FDA labelling requirements.
Despite the fact that the 2018 Farm Bill legalized the large-scale extraction and sale of hemp-derived CBD in the United States, the U.S. Food and Drug Administration (FDA) retains the authority to regulate such products as they see fit.
As such, businesses interested in selling CBD skin care products will need to abide by certain basic labeling requirements in accordance with the Food, Drug, and Cosmetic Act (FD&C Act). These include:
- An identity statement (indicating the nature and use of the product)
- A complete list of ingredients, in which hemp and CBD are clearly identified
- An accurate statement of the net quantity of contents (product weight, count)
- The name and physical address of the manufacturer, packer, or distributor.
In addition, most states require QR (quick response) codes on CBD product labels.
When selling CBD products, it is required in most states to have a QR code on the label of all retail CBD items. The QR code must link to a finished product Certificate of Analysis (CoA) containing:
- The product lot number
- Third-party testing information
- Confirmation the finished product does not exceed 0.3% THC on a dry weight basis and contains no contaminants
- Internet address and product expiration date
As an example, here’s how the process will work if you choose to launch your CBD skin care line with Onoxa:
Step 1: Purchase the CBD products you would like to sell as your brand.
Step 2: The Onoxa Customer Success team will send you all documentation required by law to provide to the end customer.
Step 3: Put your information on the documents for the products you’ve purchased. On the client line, put your brand name. If you have a logo, you can put that in the top left for the header. You can do this using a platform such as Adobe Acrobat OR by printing the documents, fill in your info with a pen, then scanning it. (We cannot do this for you due to legal restrictions.)
Step 4: Upload your documents as a PDF to a free QR code generator to receive your QR code image.
Step 5: Email your QR code to [email protected] so our designers can include it on all of your CBD product labels.
After that, our design team will finish your free label design and send proofs of your labels for you to review.
Finally, finding the right banking partner (and payment processor, if selling online) is essential.
Businesses looking to sell CBD products still face some barriers in terms of getting financial support from banking institutions and eCommerce platforms, as many still consider selling CBD products (even cosmetic topicals) a “high-risk” business. However, many smaller institutions have stepped up to the plate.
If you are considering adding a CBD skin care line and selling products on your website, it is extremely important to first review the terms and conditions of your eCommerce platform and existing payment processor.
For example, Shopify now allows for the sale of CBD products on its platform, as does the Square point-of-sale (POS) system, and many retailers will also accept bank debit card payments.
In contrast, if you are using a Wix platform, they prohibit selling CBD products. Likewise, if you are on a platform that is using PayPal for accepting payments or processing credit card payments, it is against their terms of service and your account may be shut down.
Onoxa is excited to partner with North American Bancard (NAB) to make it easy for our clients to sell their CBD skin care products.
In business for nearly two decades and the nation’s sixth-largest independent acquirer, NAB is its own underwriter and does not consider CBD topicals high risk.
Why is this important?
When CBD is considered high risk in the merchant processing world, you may end up paying over 5% on sales transactions (as opposed to the normal 2-3%), which could significantly eat into your business margins.
Partnering with NAB allows Onoxa to simplify payment processing for our clients. If you choose to partner with them also, you can rest assured your business will not be flagged or shut down for selling CBD.
And, because NAB integrates with Authorize.net as the payment gateway, changing payment processors is a simple and seamless experience. (To start your application, call Neil Shaw at 248.497.1342.)
Learn more about advertising restrictions when it comes to CBD.