Over 60% of Americans knew about CBD-related products in 2019, as concluded in a survey. It also summarized that over 64 million American consumers have used CBD products in the last couple of years.
Cowen estimates that the American market for CBD is expected to reach over $16 billion by 2025, making it one of the high-potential markets for businesses. Therefore, learning how to sell CBD on Shopify in 2024 can help you tap into this market and establish a successful online CBD business.
The boom in CBD demand is followed by various benefits of the products, which experts continuously recognize. This is also leading to more first-time consumers trying their hands on CBD. So, if you have been waiting to launch an online CBD store, perhaps it’s the best time.
Nonetheless, before entering this market, it’s important to remember that it’s a high-risk business. You can say it is a legal “grey area” with ambiguous legislation. Any violation of unclear laws on payment processors can lead to serious consequences, including shutting down the store.
What Is CBD Payment on Shopify?
Finding the best Shopify CBD Payment Processor for processing Shopify’s company is crucial, particularly when you are a CBD merchant trying to learn how to sell CBD on Shopify.
This is because the platform has no specific “CBD payment” option. Shopify Payments, their payment processing service, does not accept transactions for CBD products.
However, selling CBD is still possible by utilizing third-party payment processors specifically designed for high-risk industries like CBD. These processors have the necessary compliance measures and accept transactions for hemp-derived CBD products containing less than 0.3% THC.
What Is the Best High-Risk Payment Processor for Shopify?
When looking for the best high-risk payment processor gateway for Shopify to sell CBD products, ensure the company has the right experience in dealing with multiple types of transactions.
Also, understand all the requirements for opening merchant accounts with high-risk payment processing companies to avoid any problems down the line. Some of the best high-risk payment processors for online stores selling CBD or related items include:
- WorldNet
- Epay and ClearHaus
- NMI
- eMerchant Brokers
- DigiPay
Read Also: Is Shopify Still Profitable for eCommerce
Understanding Shopify’s CBD Policy
Even though selling CBD on Shopify is possible, it comes with restrictions and requires careful navigation to know how to sell CBD on Shopify. Here’s a breakdown of the key points:
- The store allows the sale of CBD hemp-derived products as long as they contain less than 0.3% THC.
- It applies to various CBD products like oils, topicals, and edibles.
Significant Limitations
- Shopify Payments cannot be used: You must integrate a separate payment gateway designed explicitly for CBD transactions. Popular options include PaymentCloud, PayTabs, and HighRiskPay.
- Stringent legal compliance: Each region has its laws regarding CBD sales. You must ensure your products and marketing materials comply with all local and regional regulations.
- Marketing restrictions: Avoid making any medical claims about your CBD products, as this is strictly prohibited by Shopify.
Requirements to Sell CBD on Shopify
While it allows the sale of hemp-derived CBD products under specific conditions, navigating the legalities and platform restrictions requires careful preparation. Here’s a checklist of key requirements you must fulfill:
Product Requirements
- Your CBD products must be derived from hemp, not marijuana, and contain less than 0.3% THC.
- Provide third-party lab reports verifying the THC content and product purity.
- Ensure your products adhere to all local and regional CBD sales and labeling regulations.
Shopify Specifics
- Complete and submit the Attestation for the Sale of Hemp and Hemp-Derived Products on Shopify.
- Shopify Payments cannot be used for CBD transactions. Find a third-party, CBD-compliant payment gateway.
- Avoid making any medical claims about your CBD products. Focus on features and benefits.
Legal and Regulatory
- Thoroughly research CBD regulations in your target market, including licensing requirements, marketing restrictions, and age restrictions.
- Consider consulting with a lawyer specializing in CBD regulations for specific guidance.
- Regulations are constantly evolving. Stay informed about any changes to ensure your business remains compliant.
Read Also: How Much Does it Cost to Start a Shopify Store
Types of CBD Products You Can Sell on Shopify
While navigating legal restrictions is crucial, the best part is that you can offer a diverse range of CBD products in the store! Here are some popular options for exploring how to sell CBD on Shopify.
Ingestibles: CBD oils, tinctures, capsules, gummies, and snacks like chocolates or protein bars provide convenient consumption methods.
Topicals: Lotions, creams, salves, and balms allow targeted application for muscle soreness, joint pain, or skin concerns.
Bath & Body: CBD-infused bath bombs, soaps, shampoos, and bath salts offer relaxation and potential skin benefits.
Pet: CBD treats and oils for pets are gaining popularity for anxiety, pain relief, and overall well-being.
Vaping: However, due to regulatory concerns and potential health risks, Shopify strictly prohibits the sale of CBD vape products.
Finding the Right Shopify CBD Payment Processor
Selling CBD on Shopify requires strategic planning, and finding a compatible payment processor is the most important. There are multiple options to fuel your CBD business journey. Here’s your guide to identifying the perfect processor:
Know Your Needs
- Transaction volume: High-volume businesses demand competitive fee structures. Explore processors like PaymentCloud for global reach and cost-effectiveness.
- Target audience: Ensure your chosen processor operates in your target regions. Telr and PayTabs are strong options for UAE-based businesses.
- Integration ease: Seamless integration with your Shopify store is crucial. Research processors are known for user-friendly onboarding experiences.
- Charges: Compare base fees, per-transaction costs, and chargeback fees to optimize your budget. Soar Payments offers transparent pricing for various businesses.
- Customer support: Prioritize processors with responsive and knowledgeable support teams to navigate potential hurdles. HighRiskPay.com excels in this area.
Beyond Established Players
- Specialized CBD processors: Platforms like CannaPay and MJ Freeway Payment Gateway cater specifically to the CBD industry, offering tailored features and compliance expertise.
- Industry consultations: Connect with payment processing companies familiar with CBD regulations and specific requirements. They can provide invaluable guidance.
How to Sell CBD on Shopify in 3 Easy Steps
1. Apply for Your CBD Merchant Account
This acts as your financial gateway, handling transactions and ensuring compliance. Research and choose a reputable processor specializing in CBD, like PaymentCloud or Telr. Fill out their application, providing accurate business information and lab reports for your products.
2. Underwriting Process
Don’t worry, it’s not an exam! The processor will assess your business risk based on factors like financial history, product quality, and compliance adherence. Be transparent and prepared to answer questions thoroughly.
3. Approval Process
Once cleared, you’re officially ready to roll. Integrate your chosen processor with your Shopify store, finalize product listings, and hit the publish button. Remember, stay compliant with regulations and marketing restrictions.
Marketing Your Shopify CBD Products
Start by understanding your target audience and their preferred platforms. Leverage social media to sustain a loyal community through engagement and interaction. Moreover, you can also offer valuable content beyond just products, establishing yourself as a trusted resource.
Remember SEO optimization and data-driven decisions to improve your reach and impact constantly. These steps allow you to successfully market your CBD products and attract a thriving customer base.
Importance of Customer Support for Your CBD Store
Providing exceptional customer support in the CBD industry goes beyond just good business practice. Undoubtedly, it’s crucial for building trust and navigating a complex regulatory landscape. A dedicated support team can lead to the formation of informed purchase decisions.
They do it by handling concerns or questions promptly, fostering trust and transparency. Additionally, gathering customer feedback through support interactions allows you to refine your products and marketing strategies to beat the market competition.
After all, prioritizing customer support isn’t just about resolving issues; it’s about creating a community of informed and confident customers who advocate for your brand in the dynamic world of CBD.
Cannuka – A Successful Shopify CBD Store Example
After going through various details and legalities covering how to sell CBD on Shopify, it is time to talk about one of the most successful Shopify CBD stores, Cannuka. It is one of the leading online stores offering CBD-based health and beauty products, including face creams, body cleansing bars, eye balms, and others.
The company has designed a vivid and interactive home page highlighting the various benefits of the products being offered. Also, there’s a lot of educational material available to help build the trust of visitors and assist them in choosing the best product.
To ensure complete transparency and compliance with all the regulations, the store has mentioned that the FDA does not approve their products and, thereby, may not treat any diseases.
The whole concept of Cannuka is to build customers’ trust by keeping a highly transparent and ethical working model. They listed all the ingredients used in various products on a dedicated page that gives detailed information about every product being offered by the store.
How to Start a Successful CBD Ecommerce Business on Shopify
Folio3 is a Shopify Partner, and we can help you start your online CBD eCommerce business quickly and efficiently. We have the experience and expertise to help you get started on the right foot and avoid the common pitfalls that can hamper your success.
Furthermore, we will help you choose the right plan for your business, select the best Shopify themes and apps, configure your store for optimal conversions, and load it with high-quality products. In addition, we will provide ongoing support and maintenance to keep your store running smoothly.
If you are interested in gaining insights into how to sell CBD on Shopify business, contact us today. We will discuss your specific needs and requirements and develop a tailor-made solution for you.
Selling CBD on Shopify: Final Thoughts
Selling CBD on Shopify requires diligence, research, and compliance, but it can be rewarding once you discover how to sell CBD on Shopify. Carefully understand the necessary steps and precautions, and weigh the pros and cons based on your resources, risk tolerance, and target market.
By navigating the challenges strategically and prioritizing consumer trust, you can launch a successful CBD business on Shopify and contribute to the evolving wellness landscape.
FAQs – How to Sell CBD on Shopify
Does Shopify Allow You to Sell CBD?
Yes, Shopify allows selling CBD products with a proper merchant account and compliance with regulations.
Can You Dropship CBD Products?
Yes, you can dropship CBD products on Shopify. Your supplier must comply with regulations and provide the documentation for your merchant account.
How Do I Start a CBD ECommerce Store?
To start a CBD eCommerce store on Shopify, follow these steps:
- Research and understand the legal requirements.
- Choose a reputable payment processor that specializes in CBD.
- Create a Shopify account and set up your online store.
- Source high-quality, compliant CBD products from trusted suppliers.
- Market your products.
- Offer exceptional customer support.
- Stay updated on evolving regulations and industry trends.
What Is the Best Payment Processor for CBD Products on Shopify?
The best payment processor for CBD products on Shopify would depend on your location, business needs, and risk tolerance. Some popular options include Square, Stripe, and Authorize.net.
Source: https://ecommerce.folio3.com/blog/cbd-payment-processor-shopify/
