4 Steps to Selling CBD on Shopify

Selling CBD on Shopify

Shopify is one of the best options available to start or expand your business online, whether it’s an established industry or something many would consider “new.” While CBD is legal in the United States, it’s by far still in the “new” category as the industry regulations, as well as how it’s marketed and sold online, are changing regularly. That said, according to Shopify’s website, owners are allowed to sell CBD on their platform:

US merchants in certain states are able to sell select hemp or hemp-derived cannabidiol (CBD) products on Shopify. Merchants can sell these products only in states where permitted by law. State laws and regulations governing the sale of these products vary significantly and are subject to change. You should consult with an attorney to determine how and where you’re able to sell your product.

The main requirement to Starting a CBD Business on Shopify is that you must complete an “Attestation for the Sale of Hemp and Hemp-Derived Products” on their platform saying you accept their conditions for selling on Shopify:

The attestation form outlines Shopify’s requirements for merchants selling hemp and/or hemp-derived CBD products in the United States. By filling out the form, merchants confirm that they understand the requirements for selling hemp and/or hemp-derived CBD products on Shopify, and that they will comply with those requirements.

From a merchant perspective, one of the biggest differences between selling in-store and online is that neither the purchaser or their credit card are present in order to complete the transaction. That distinction is the reason CBD is often considered high-risk by credit card processors because chargebacks and fraud occur more frequently on a per purchase basis for the CBD industry compared to other industries. Even if you do find a credit card processor, they may have lengthy contracts, regular fees, or the ability to hold funds or freeze your account if you run into chargeback troubles. The good news is we can help get you selling CBD on Shopify today!

4 Steps To Selling CBD on Shopify

Alright, you’re starting a CBD business on Shopify – but how exactly do you do that? Here are the four steps to start your Shopify store and start selling CBD online.

Step 1: Go to Shopify and click “Start free trial” to begin the process.
Step 2: Create your Shopify store (see more below)
Step 3: Review and submit Attestation for the Sale of Hemp and Hemp-Derived Products
Step 4: Choose and apply for the third-party payment gateway – we’d happily help you with this step in the process; just fill out the form at the top of the page here.

Every merchant can start a Shopify store with a free 14-day trial on the platform. That gives you time to choose a theme, build your store, and get your products approved to sell on Shopify. You’ll also have a bevy of options when it comes to integrating your store with other apps, such as Facebook or Google Ads, and possibly your email marketing application.

The most important part of the process when starting a CBD business on Shopify is making sure you have a payment processor that works in the CBD industry and is adept at helping business owners through the chargeback process.

What to keep in mind if you sell CBD on Shopify

Once you’ve decided to “go for it” and start a CBD business on Shopify, we have a few other suggestions that should keep you out of Shopify “jail” – they are:

• Adding an age-gate to verify that all your customers are over the age of 21, a requirement for buying CBD in the US.
• Building landing pages that can be used for ads on Instagram, Google, and Facebook. Each platform has its own requirements for the language that can be used on landing pages when you’re running paid ads to them. Google, for instance, will not allow ads if you have CBD written anywhere on your site so they might not be an ideal ads partner for you until they change their policies.
• Research methods that will allow you to take advantage of subscription or recurring billing programs, in addition to product upsell options and cart abandonment messages. There are several API plugins that should do the trick, you just need to find one that works for you.
• Build a CBD order batch look-up process to stay in compliance with states that have those requirements.
• Setting up custom shipping rules for different types of products if you’re limited by legal restrictions in some areas.
• Creating shipping labels that automatically require signatures on delivery.

Should you choose Shopify for your eCommerce Business?

The answer to “should you choose Shopify for your CBD eCommerce business” should be a resounding Yes. According to ResearchandMarketing.com:

Amid the COVID-19 crisis, the global market for Cannabidiol (CBD) Oil estimated at US$1.4 Billion in the year 2020, is projected to reach a revised size of US$12.9 Billion by 2027, growing at a CAGR of 36.6% over the period 2020-2027.

There are already more than 1,000,000 businesses on Shopify, including dozens of CBD businesses. It’s a trustworthy, easy to use, and simple platform for building an online business. The growth potential of the CBD industry makes it a great space for you to launch your business as soon as possible.

For information on using WizoPay as a third-party processor of your CBD business, fill out the form here and we’ll contact you to discuss your options.