Starting your online CBD business serves as a unique opportunity for entrepreneurs to enter a market that has thousands of customers. Besides personal preference and consumption, CBD is also being used for medical purposes, which is why it has also become legal in some provinces of Canada and many states in the United States, but under regulations.
Now, whenever it comes to starting an online business, Shopify serves as the most popular option for every business owner. Well, the good news is that Shopify made it possible for online merchants to sell CBD and CBD-related products in 2019 under defined regulations. In other words, you can sell CBD on Shopify if all the products contain less than 0.3% of THC and comply with the local laws and regulations.
Start Selling CBD Online - Build Your
Website and Store
With that being said, CBD business owners can certainly take full advantage of Shopify’s simplicity, speed, and user-friendly features to set up their online stores. However, there are some challenges that still need to be addressed to go through the complex landscape of setting up a CBD Shopify store.
In this article, we will explain everything you need to know about selling CBD on Shopify and how to tackle the challenges to avoid any compliance-related issues. But first, let’s look at the legality of the CBD products overall and how businesses should adapt their compliance for them.
Understanding the CBD Legality: Is it Safe to Sell Online?
Selling CBD online has always been controversial due to a number of reasons, including its legality, amount of consumption, and formulations of the products.
Since there is a high demand for CBD products online, there is no doubt that it is a hot market to get into. But on the merchant side, it’s more like hot water if you don’t know how to walk through the maze of legality.
Since THC-infused CBD products are federally illegal in the United States, it is considered a Level 1 illegal substance, and many eCommerce platforms ban CBD business owners from selling such products online.
Always keep in mind that starting your online CBD business with legal compliance is not a one-time thing. The laws and regulations regarding CBD are always updating and changing at both the state and federal levels.
In the United States, the 2018 Farm Bill legalized the sale and consumption of hemp-infused CBD products containing less than 0.3% of THC. Based on this federal regulation, Shopify also designed its policy around it.
The federal laws apply nationwide, but the state laws add a further layer of regulations to them (which is also true in the United States). In some states, CBD products are legalized for recreational or medical use, while in other states, it is completely banned to sell or consume. Therefore, you should always check the legality status of CBD products that you are selling.
Can You Sell CBD on Shopify? Policy Overview
Before you plan the roadmap for building your Shopify store, the clear answer is yes, you can sell CBD on Shopify. However, your eCommerce store has to comply with the policies defined by Shopify to sell CBD.
Here is what you need to know:
Shopify Made Selling CBD Legal in 2018
Shopify does allow you to sell CBD products on its platform as per its defined policy under the Farm Bill’s defined limit (must contain less than 0.3% THC in CBD products).
But at the same time, Shopify does not allow its traditional payment methods for transactions related to CBD products. In this case, business owners can set up their CBD store on Shopify, but they will have to use a third-party payment processor, which is high-risk and comes with additional costs.
Additional Regulations to Sell CBD on Shopify
Payment method and legal compliance are not the only factors you have to deal with to sell CBD products on Shopify; you also have to fulfill the following requirements to sell CBD via Shopify for your store:
- Lab test results that are valid and up to date, to ensure that Shopify that every product that you are selling complies with the legal THC levels and maintains safety standards.
- For US-based CBD merchants, it’s mandatory to go through the complete admin attestation process in order to create their profile. This process is necessary for them to understand the local laws and compliance conditions properly.
- Adhere to the FDA-defined regulations related to the CBD market to avoid any unforeseen health claims.
As discussed earlier, the state laws can vary, which is why you should always consult with a local legal expert to ensure that you comply with the jurisdiction of the place where you are selling CBD or CBD-related products on Shopify.
What Type of Products are Allowed to Sell on Shopify?
There is a wide variety of CBD products available in the market, such as gummies, pills, capsules, powders, and even teas. Most of these products are very high in demand due to their formula or structure. Before proceeding with the store development, CBD business owners have to ensure that all of their products comply with Shopify’s CBD policy.
CBD Products that You Can Sell on Shopify
Mainly, there are five types of CBD products that you can sell on Shopify, including:
- CBD Oils and Tinctures are the most common and popular choice of consumers.
- CBD Edibles, which include gummies, chocolates, and different types of CBD-infused products in the form of snacks.
- CBD Topicals, which are skin-applicable balms, lotions, and creams. Probably the most legal-to-sell CBD product for Shopify.
- CBD Pet Products is a rather unique category that includes supplements and treats.
- CBD Capsules that can be consumed orally and comply with FDA regulations.
Start Selling CBD Online - Build Your
Website and Store
CBD Products That You Can Not Sell on Shopify
Some of the CBD products can be harmful to consumers’ health, and they might go against the regulations:
- Products with THC levels higher than 0.3% as per the limitations defined under the Farm Bill of 2018.
- Products that do not have third-party lab tests to verify the amount of THC content or other contents in them.
- Products that make unrealistic health claims without any approval or attestation from the FDA.
- Products that do not feature age limitations can lead to serious legal consequences.
How to Sell CBD on Shopify: 5 Easy Steps
Setting up your CBD store on Shopify is quick and easy with these five steps that we have mentioned below:
Step #1: Source CBD Products to Sell
Whether you are manufacturing the CBD products yourself or sourcing them from another market to sell via Shopify, you have to ensure that you source something that is legal to sell and actually attracts customers.
Shopify makes it easier for merchants to sell CBD products by allowing them to link their CBD Shopify store with wholesalers and suppliers using third-party applications. This feasibility ensures that you never run out of stock to sell even the most high-demand CBD products.
Step #2: Create Your CBD Shopify Store
Create an account on Shopify, avail a subscription, and design your Store with complete customization options provided by Shopify’s store editor. Creating a store with Shopify is fairly simple, as you get all the options and features right on the platform, including hosting and all the other services, without needing any coding knowledge.
For designing your CBD store on Shopify, it’s preferable to choose a mobile-friendly theme. Since 70% of the internet traffic is coming from handheld devices, it only makes sense to make your CBD store optimized for the mobile viewing experience.
With features like Shopify Magic, you can write attractive product descriptions. And don’t forget to add buttons, customer reviews, and prominent features of that product.
Step #3: Marketing of Your Shopify Store
Once you have set up your Shopify store, the next step is marketing and turning every engagement into a conversion. With the right SEO techniques and tools available in the form of Apps on Shopify, you can apply strategies and techniques to make your products visible online.
Shopify also gives you the option to promote your products on compatible social media platforms and marketplaces, which gives you an extended reach to gather more audience as customers.
Step #4: Setting Up Payment Gateway for CBD Products
Shopify does have its own payment gateway, but it does not permit it for CBD sales. Therefore, you will have to set up a payment gateway from third-party processors that offer compatibility with Shopify and support their sales.
Besides CBD, Shopify does not offer its payment gateway for any product that is an illegal substance under any state or federal law, which also includes tetrahydrocannabinol (THC) and hemp-related products.
Step #5: Shipping and Fulfilling the Orders
Customers love reliable shipping, and this is why you should get a postal service that maintains transparency. Due to the restrictions imposed on certain CBD products, make sure that your CBD products comply with the shipping company’s policy.
You can quickly process your payments through automated label printing, tracking, and discounts on shipping rates. Once your CBD business starts growing, you can find other fulfillment options that comply with the legal requirements of CBD product regulations.
How to Choose the Right Payment Gateway for CBD Sales on Shopify?
Since Shopify does not offer its own payment gateway, using the third-party options may seem a risky option with higher fees to pay off your profits. Therefore, the CBD businesses should consider the following factors while choosing a payment gateway for their CBD business:
- Compare processing fees and other charges.
- Make sure the chosen payment process seamlessly integrates with your CBD Shopify store.
- Always choose a payment processor that offers reliable customer support.
Top 3 Payment Gateway Providers Compliant for CBD Products
If you are struggling to find the right payment processor, then here are the three most popular options to choose from:
1. Bankful
The first option on our list is Bankful, which is a new entrant in the payment processing market. This service provider supports online payments for CBD via Shopify and various other eCommerce platforms, such as WooCommerce and BigCommerce, as well.
2. NMI
NMI is another popular choice of CBD business owners, which supports a vast number of payment methods, such as credit and debit cards and ACH. NMI allows payment processing for CBD products, and its range of payment processing options can help your customers pay according to the option that suits them well.
In addition, CBD business owners can get access to a number of transactional insights that help them track the progress of the company, giving them insights into how well things can be maintained in the long run.
3. Square
Square is known to be one of the biggest payment processing service providers in the world. Since 2019, Square has been providing payment processing services for Shopify-based CBD businesses.
The best thing about Square is that it works for both high and low-volume sales-based CBD businesses. Hence, this payment processor is really suitable for growing and establishing your business from a startup to a well-established brand.
How to Effectively Sell CBD Products on Shopify?
Now that we have covered the most important aspects of our topic, let’s talk about how you can go ahead with the CBD sales on Shopify. Many new entrants or inexperienced sellers might think that they are unable to make any sales from their Shopify CBD store due to the restrictions or limitations. However, it’s all about the right marketing techniques.
Here are the 4 key areas you need to focus on to boost your CBD sales online:
Content Marketing
- Make your Shopify store as informative and valuable through blog posts related to CBD products, landing page content, and other essential pieces of writing that can raise the domain authority.
- Besides informational, you can write affiliate blogs, guidelines, and even visual content that educates the audience more about your brand and its products. The common idea is to raise awareness by utilizing the written and visual content.
Social Media Marketing
- Utilizing social media platforms and their features is a great way to reach the right type of audience in an organic way. With targeted advertisement and social media ads, you can certainly achieve a higher number of sales.
- Regularly share content on social media by hosting online contests and interactive posts. You can start by posting content in relevant social media groups to raise awareness about your CBD brand and its products.
- Another great approach you can take is influencer marketing. Contact social media influencers and collaborate with them to promote your CBD Shopify store. Hence, their followers can become your customers in one shot.
Email Marketing
- Another great way to reach your prospects is email marketing. By doing some research, you may have to collect email addresses of your customers through subscriptions, newsletters, and visitors on your website, and then present them with direct offers.
- You can send targeted offers based on discounts, new products, and limited stocks, which might interest them in making a purchase.
Search Engine Optimization (SEO)
- SEO is something that should never be overlooked, as your brand would appear in the form of a website as the CBD Shopify store against the keywords searched by the audience.
- Therefore, you can maintain both on-page and off-page techniques to make your CBD store visible in the search results. Spread the right keywords across the website by identifying the right pair of words that resonate with the user’s search intent.
- On-page SEO is all about featuring the right keywords on your website and product pages to make them relevant to the user’s search results.
- Off-page SEO is all about building a high-quality authority through backlinks with other reputable websites that relate to the niche of your Shopify store.
Start Selling CBD Online - Build Your
Website and Store
Conclusion
Starting your CBD business with a Shopify store can turn into a lucrative opportunity for entrepreneurs looking to get into a new market that is rapidly growing. With Shopify’s CBD products, friendly policies, and user-friendly interface, you can easily get a competitive edge as a merchant to not just survive but thrive in a new industry.
However, before you start selling CBD on Shopify, make sure to get familiar with the local laws and regulations, especially if you are operating in countries like the United States, where every state has its own laws.
Always remain informed about the ever-changing CBD and hemp-related laws, especially about the THC percentage. While setting up your store, make sure to provide all the legal documentation, certifications, and lab tests. With the aspects mentioned in this article, you can easily start selling CBD on Shopify in no time.
FAQs
Is Selling CBD on Shopify Profitable?
Yes, selling CBD on Shopify is profitable if your prices are competitive. The CBD and hemp market goes international, with hundreds and thousands of consumers looking for a variety of options. Even with some overhead costs like a third-party payment gateway, you can still make a decent profit from your business.
Can you dropship CBD products on Shopify?
Yes, Shopify dropships CBD products on Shopify, which may require navigating through some complexities of the market. First, you have to find a supplier for CBD products. Then you have to list these products on your Shopify store. After which, you have to focus on marketing your store. Once you start receiving orders, you can dropship via a number of fulfillment processes.
How to Set the Right Price for CBD Products on Shopify?
To set the right price for your CBD products on Shopify, note down the total costs for bringing your products to the Shopify store, set the profit margins in addition to those total expenses, and then list your prices accordingly. To save more, you should always find the best prices from the right supplier.
How much does it cost to start a CBD business on Shopify?
Starting your CBD business on Shopify is affordable, as Shopify gives you all the tools and options to kickstart your business without any limitations. Now it depends on your business model and how much you are willing to invest in your CBD business. The CBD business model could be dropshipping (most affordable), becoming a merchant, or becoming a manufacturer (requires high investment).
Disclaimer: This article is for informational and educational purposes only. High Stack Solutions does not promote or sell Kratom, CBD, or Delta THC products. Always consult with a licensed professional before using or marketing such substances.
