What is a CBD Shipping and Fulfillment Service, and Who Is It For?

A CBD Shipping and Fulfillment service involves a third party performing all of your order picking, packing, and shipping services on your behalf. This can include receiving any additional packaging and inserts that go along with your products. This is usually done in a branded manner so that all orders appear to have come from your company instead of a third party.

The service is best used by sellers with a branded and established product line – either white label or private label – who are looking to outsource logistics tasks to experienced providers in order to save time and resources. And for those who do not have the space or means to hold inventory. Generally, if you have a very new or low-volume eCommerce business, it’s usually more cost-effective to manage CBD shipping and fulfillment in-house..

That being said, shipping from your home or office means you must hold enough inventory to fill each order, keep your CBD in a climate-controlled environment, and live near a post office. You also need to be computer-savvy enough to know how to setup a postage printer, configure shipping and postal service options on your eCommerce website, keep packaging materials on hand and be home often enough to ensure you’re shipping your products out quickly. Same day shipping is best, next day is imperative.

How Does a CBD Shipping and Fulfillment Service Work?

When you work with the Beyond Botanicals CBD Fulfillment Program, we connect your WordPress or Shopify website to Shipstation, an integrated shipping app that handles labels, tracking, and customer notifications. Each time a customer orders from your website, the order details are automatically forwarded to our shipping team. You don’t have to do a thing.

The team then packs your order in unmarked packaging that does not identify Beyond Botanicals as your fulfillment provider. The packing slip will display all of your brand information as well. Once the order ships, you and your customer will each receive a branded tracking email notifying them of the shipment. This email also allows your customer to track the shipment in real time, straight to their door.

Additionally, Shipstation will also update the order status on your website backend, and once the order is delivered it will be marked as “Complete” in your eCommerce admin. This automates the entire process so you don’t have to do any of the work. At this point you’re running a completely turn-key, hands-off eCommerce business – which is the dream for many.

For those customers who would prefer to manually submit ordering batches at the end of each day, we do offer more traditional options in addition to the Shipstation integration.

Otherwise, we will legally ship CBD products (from industrial hemp) to you and you can manage the shipping, postage, fulfillment and website updating from your side. It is recommended you have the assistance of a Woocommerce web developer with experience setting up these types of shipping CBD oils and fulfillment systems. It’s not all that complicated once it is all setup.

Is a CBD Shipping and Fulfillment Service Good For My eCommerce Store?

CBD shipping and fulfillment is one of the most common areas of discussion from Private Label CBD business owners, especially as their brand begins to grow. A few orders here and there were easy enough to pack yourself when you first started your business. Now that you have multiple orders per day, you’d rather have someone else doing the packing and the shipping while you continue to do the important work of growing the CBD business.

If this sounds similar to how you feel right now, then a shipping CBD products and fulfillment program could be a good fit for you. The Beyond Botanicals CBD Fulfillment services provide fulfillment for existing businesses with ~100 shipments per month of demonstrable retail volume. If you’re at this threshold or close to it, contact your account manager for details on how we can help take over shipping hemp derived CBD products your orders for you.

Contact us to discuss Fulfillment

How to Choose CBD Shipping Rates

First, let’s assume you will not be offering free shipping, or only free shipping at a certain cart total. That means you need to choose shipping methods and rates for your customers. There are some tried and true dos and don’ts to consider.

  • From a technical side, setting up tiered shipping rates based on a combination, for example, of cart total, region, and weight requires table rate shipping systems which are very complicated to setup and also need frequent tweaking. If there is one tried and true method that is simply the least complicated it is flat-rate shipping, or, at the max, flat rate per cart total. Once you get involved in calculations regarding box dimensions, weight, different carriers and rates based on zip code or region – well, you’re in for a very complex and time-consuming ride.
  • The best method for shipping CBD oil is simply flat rate (like mail CBD oil). For example, $6.95 using USPS Priority Mail. If you wish to make a graduated tier, you can charge more if the users cart reaches a certain total or a certain number of items in the cart. For example, $9.95 if there’s 5 items in the cart. However, at this point most retailers choose the “free shipping” option when the cart total reaches or exceeds a certain amount, such as $49, for example.

Should I Offer Free Shipping on my CBD Store?

Well, it’s nearly impossible to find an online shopper who doesn’t want or expect free shipping. For small or low volume eCommerce retailers, however, free shipping can take a big bite out of profit margins. That’s why you need to consider your costs and calculate shipping into your expenses before you set product prices. One thing that is for certain, if you affix high postage rates to a low cart total, you will lose that sale. That’s why the best options is to “reward good behavior.”

“Rewarding good behavior” means that you offer free shipping at a certain cart total. This incentivizes the shopper to add more items in the cart so that they can meet the free shipping level. Everyone loves free shipping, even if they are ultimately paying for it in the end.

Other retailers simply choose “Always Free Shipping” which is an excellent way to build customer loyalty, but at the cost of eating the shipping expenses. While this is the most attractive options for customers, you’ll need to do some very careful calculations to ensure that you’re not losing money on each order.