As the holiday shopping season approaches, the month of December is a pivotal moment for merchants in the CBD and seeds industry. This peak period presents one of the most lucrative opportunities of the year to boost sales and attract new customers by leveraging seasonal discounts and promotions.

However, for merchants in high-risk industries like CBD, navigating payment processing during this busy time of year can be challenging. To ensure success, you need both a solid promotional strategy and a reliable payment processing partner.

In this article, we’ll explore the benefits of holiday promotions, the unique challenges faced by CBD and seeds merchants, and actionable strategies to make the most of this sales period. Additionally, we’ll discuss the importance of working with a payment processor that specializes in high-risk industries, to ensure a seamless checkout experience for your customers when online holiday shopping.

The Power of Seasonal Holiday Promotions for CBD/Seeds Merchants

During the 2024 winter holiday season, the National Retail Federation (NRF) predicts that US retail spending will hit a record high of $979.5–$989 billion, with 57% of consumers planning to shop online.

While across the Atlantic, UK retail sales are projected to reach an unprecedented £88.3 billion ($112 billion), solidifying its position as Europe’s biggest spender during Christmas, followed by Germany.  

For CBD and seeds merchants, this is a prime opportunity to promote your products to a broader audience through strategic discounts and promotions.

Offering discounts or bundling products into promotional deals can help you stand out in a competitive marketplace. During the festive period, shoppers are proactively looking for the best possible deals, and brands that create a sense of urgency through limited-time offers can capitalize on this consumer behavior.

Why CBD and Seeds Products Are Primed for Holiday Sales in 2024

Increasing Consumer Interest: 

As the CBD and seeds markets grow exponentially, so does consumer interest in trying these products. First-time buyers may also be motivated by discounted prices to give your products a try during the holidays.

According to a recent report by industry experts Prohibition Partners, global sales of CBD, medical and adult-use cannabis are expected to reach US$101 billion by 2026, with the US still representing the largest market internationally. The European CBD market alone is projected to reach €2.6 billion by 2026, reflecting a huge sense of opportunity across the region.

Health and Wellness Trends: 

The health-conscious consumer market has expanded rapidly, and CBD products fit perfectly within this trend. Consumers are increasingly looking for wellness gifts for their loved ones, making the festive season an ideal time of year to promote CBD as a thoughtful, health-focused holiday gift.

In recent years, the CBD and seeds industries have evolved from a fairly niche sector into more prominent players in the wellness market. This has been driven by increased public awareness and education, a focus on higher quality products and transparency within the industry. All of this combined means CBD products are being gifted more than ever. 

Key Challenges for CBD/Seeds Merchants During the Winter Holiday Season

While festive holidays including Christmas, Hanukkah, Kwanzaa and New Year celebrations offer great sales potential, the CBD and seeds industries face unique hurdles—particularly in terms of payment processing and compliance.

1. High-Risk Payment Processing

CBD and seeds sales are considered high-risk by most traditional payment processors. This is largely due to regulatory concerns, high chargeback rates, and the association with cannabis products. Many merchants find themselves dealing with account freezes, higher transaction fees, or outright denial of services. These issues can become especially amplified if there is a noticeable increase in sales activity during a short window of time, as is often the case during the weeks leading up to the end of the year. 

Working with a payment processor which specializes in high-risk industries can alleviate these challenges. Vendo provides secure, reliable payment solutions tailored for CBD and seeds merchants, ensuring that your transactions flow smoothly even during high-volume periods like the Christmas shopping window.

2. Compliance with Advertising Restrictions

Marketing CBD products is not as straightforward as other industries. There are numerous restrictions on promoting CBD on platforms like Google, Facebook and Instagram. Meta maintains strict advertising standards for CBD and related products, limiting ads to certain countries and requiring advertisers to be certified with LegitScript.   

This means that in the build up to and during the holiday season, effective email marketing, collaborative influencer partnerships, and strong SEO strategies become vital in reaching your target audience without violating ad policies. A focus on social media content that is educational rather than more overtly promotional can also help to stay on the right side of these restrictions.

3. Inventory and Fulfillment Challenges

During the holiday rush, it’s imperative that your inventory is well-stocked and that your order fulfillment process is streamlined. Delays in shipping can lead to dissatisfied customers and potential chargebacks, both of which are especially damaging for high-risk merchants.

Tips for Leveraging Festive Holidays for CBD/Seeds Sales

A clear, organized plan will help you to make the most of the festive season. Here are some useful strategies to help you capitalize on this high-demand period while mitigating the unique challenges of the CBD and seeds industries:

1. Early Planning is Key

Don’t wait until the last minute to plan your festive promotions. Consider offering complementary items with certain purchases, attractively priced bundles or tiered discounts that increase based on spending levels. Early planning allows you to coordinate with your fulfillment team, ensure that you have enough inventory to meet demand and provide a smooth customer experience.

2. Build a Strong Email Marketing Campaign

Since CBD and seeds merchants face advertising restrictions, email marketing is one of the most effective tools at your disposal. Create a series of email campaigns leading up to the winter holidays to build and leverage anticipation. Offer exclusive discounts to your email subscribers and give your audience a sneak preview of your upcoming promotions.

3. Optimize Your Checkout Process

Cart abandonment rates often spike during high-traffic months like December. Ensure your checkout process is fast, secure, and optimized for mobile devices. This is where working with a specialized payment processor like Vendo is critical. We offer seamless checkout experiences that reduce friction, ensuring that more customers complete their purchases.

4. Provide Flexible Payment Options

Offering multiple payment options alongside traditional credit cards, including Pay by Bank and digital wallets for crypto can all help increase conversion rates. Giving customers a range of different options reduces payment friction and optimizes sales, while also increasing your profit margins due to lower fees. 

Vendo’s payment processing solutions are designed to accommodate a variety of payment methods while ensuring compliance with industry regulations.

The Bottom Line

The festive shopping event presents a unique commercial opportunity for CBD and seeds merchants to drive sales and attract new customers through seasonal promotions. However, the complexities of high-risk payment processing, advertising restrictions, and inventory management can pose challenges. By planning your promotions early, focusing on compliant marketing strategies, and partnering with a reliable payment processor, you can navigate these challenges and maximize your revenue during this crucial sales period.