Can you sell CBD on Shopify? The Right Way To Sell CBD on Shopify
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Yes, selling CBD on Shopify is a legitimate and increasingly common business, given the growing demand for hemp-derived products. Shopify has tailored its platform to support the sale of CBD, provided merchants comply with legal and regulatory requirements.
But still, a CBD business is still something in what we call a gray area and there are a few things you need to consider to operate your CBD Shopify store smoothly.
Can You Sell CBD on Shopify?
Can you sell CBD on Shopify? Yes, you can and Shopify has made that very clear on their official website.
Shopify's guidelines state that merchants can sell these products if they comply with all applicable laws and regulations in both their jurisdiction and that of their customers. This includes ensuring that the products are derived from hemp and contain less than 0.3% THC, in line with federal regulations.
It's important to note that while Shopify allows the sale of hemp-derived CBD products, merchants are responsible for understanding and adhering to the laws governing their business.
This includes restrictions related to marketing, shipping, and payment processing, which can vary by region.
Shopify advises merchants to consult with legal counsel to ensure compliance with all relevant laws and regulations.
What Types of CBD Products Shopify Allows
Here is a list of products made from CBD that Shopify allows merchants to sell on their platform:
- CBD gummies/chocolates
- CBD for pets
- CBD oil
- CBD creams/lotions
- CBD concentrates
- CBD flowers
- CBD ointments
- CBD atomizers and sprays
Choosing Shopify CBD Payment Processor
Even though Shopify allows you to sell certain CBD products, CBD products are still considered risky by many banks and payment processors, including Shopify Payments.
That’s why selecting the right payment processor is crucial for selling CBD products on Shopify. Luckily, Shopify supports several CBD-friendly payment processors, each with its own benefits and requirements.
1. CBD-Friendly Payment Gateways
Shopify integrates with providers like DigiPay, Authorize.net, and Square that are tailored for high-risk businesses, including CBD sellers. These gateways understand the specific legal and regulatory needs of the CBD industry, making them reliable choices.
2. Compliance and Documentation
To set up a CBD payment gateway, you'll need to provide detailed documentation, such as business licenses, product descriptions, and certificates of analysis (COAs) for CBD potency and THC levels. Ensuring compliance upfront prevents delays in approval.
3. Fees and Costs
Payment processors for CBD often charge higher transaction fees compared to standard gateways due to the perceived risk. Compare pricing structures, including setup fees and per-transaction costs, to choose the most cost-effective option.
4. Customer Trust and Transparency
Choose a processor that provides secure and seamless payment experiences. Display trust badges and emphasize secure transactions on your checkout page to reassure customers.
5. Regional Considerations
Ensure the payment processor operates in your region and allows transactions in the areas you serve. Laws around CBD sales vary by state or country, and your processor must support those variations.
How to Sell CBD on Shopify in 6 Easy Steps
1. Source and create CBD products to sell
Finding high-quality CBD products is essential for building a trustworthy brand. Partner with reputable suppliers who provide third-party lab-tested products to ensure purity and legal compliance.
Offering a variety of options, such as oils, gummies, or skincare products, can help you cater to different customer needs. Alternatively, creating your own products allows you to establish a unique brand identity, but it requires partnering with experienced processors and ensuring you meet all legal manufacturing standards.
2. Create an online store to sell CBD products
Shopify provides a robust platform for selling CBD, but setting up your store requires attention to detail. Use a clean, user-friendly design and include educational content about CBD to address customer questions.
Detailed product pages with high-quality images, lab test results, and clear usage instructions build trust. Don’t forget to include legal disclaimers and policies to comply with regulations. Leveraging Shopify's built-in features, like inventory management and SEO tools, can streamline operations and increase visibility.
You can check out our detailed Shopify tutorial to learn how to build a CBD Shopify store.
3. Market and promote your CBD business
Marketing CBD products can be challenging due to restrictions on platforms like Google and Facebook. Focus on SEO to drive organic traffic, and use email marketing to nurture relationships with your audience.
Collaborate with influencers in the health and wellness space to expand your reach authentically. Additionally, create valuable content, such as blogs or videos about the benefits of CBD, to educate your audience and position your brand as an industry expert.
4. Set up a payment gateway for CBD sales
Not all payment gateways support CBD sales due to legal complexities. Shopify supports CBD-friendly gateways like DigiPay and Authorize.net, which specialize in handling high-risk transactions.
Be prepared to provide detailed documentation about your products and business to set up these gateways. Ensuring a secure and compliant payment process builds credibility and minimizes disruptions in your business.
5. Ship and fulfill CBD orders
Shipping CBD products requires careful planning to ensure compliance with federal and state laws. Choose carriers like USPS or UPS that allow CBD shipments and confirm that your products meet shipping requirements.
Use Shopify’s fulfillment tools or partner with third-party logistics providers to streamline the process and guarantee fast, reliable delivery. Clear communication about shipping policies and timelines will help manage customer expectations and enhance satisfaction.
6. Provide Customer Support
Customer support is a critical component of running a successful CBD business, as it helps build trust, address concerns, and improve customer retention.
Since CBD is a regulated product with unique customer questions, your support system must be knowledgeable and proactive. You should set up multiple support channels in order to provide quick, detailed, and personalized service for your customers.
Conclusion
In conclusion, selling CBD on Shopify presents a lucrative opportunity for entrepreneurs to enter the thriving CBD market.
With Shopify’s supportive platform for regulated products, sellers can build a compliant, professional online store that meets customer expectations. Success hinges on sourcing high-quality products, adhering to legal guidelines, and providing exceptional customer support.
By leveraging effective marketing strategies and CBD-friendly tools on Shopify, businesses can navigate the complexities of this industry while building trust and driving growth in a competitive market.
If you are looking for some help building your CBD Shopify store, feel free to contact NextSky for professional consultation and services.
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