Can You Sell CBD on Shopify? Understanding the Legality and Benefits of Selling CBD Products Online
As the CBD trend continues to grow, more and more businesses are looking to cash in on this ever-expanding niche. With online sales becoming increasingly popular, many are turning to the ecommerce platform Shopify to sell their CBD products. But can you sell CBD on Shopify? In this article, we will explore the legality, benefits, and challenges of selling CBD products on Shopify, as well as providing real-life success stories and helpful tips for businesses looking to get into the industry.
Understanding the Legality of Selling CBD Products on Shopify
The legality of CBD products in the US can be a bit confusing, as there are various regulations and laws at both the federal and state levels. However, at the federal level, the 2018 Farm Bill legalized hemp and hemp-derived products, which includes CBD as long as it contains less than 0.3% THC.
It’s important to note that marijuana-derived CBD products remain illegal at the federal level, and only a few states have legalized them for both medical and recreational use. This means that businesses selling CBD on Shopify must ensure their products are derived from legally grown hemp and contain less than 0.3% THC.
Furthermore, businesses selling CBD on Shopify must comply with additional regulations imposed by Shopify and the payment gateway they use. According to Shopify’s policies, businesses selling CBD products must be based in the US, provide proof of licensing and compliance with all applicable laws and regulations, and must not make any medical claims about their products.
A Step-by-Step Guide to Selling CBD Products on Shopify
If you have a legally compliant CBD product and are ready to start selling on Shopify, here’s a basic step-by-step guide to get you started:
- Create a Shopify account and choose a pricing plan that suits your business needs.
- Set up your website by selecting a theme, customizing your design, and creating your web pages.
- Install an app or plugin that’s designed specifically for selling CBD products, as Shopify’s default payment gateway doesn’t currently allow CBD sales.
- Create your product listings by adding product details, descriptions, photos, and prices. Ensure that you comply with Shopify’s policies regarding medical claims and age restrictions for your products.
- Add shipping rates and payment options, and look for a CBD-friendly third-party payment gateway and shipping provider.
- Test your website and make sure everything is working smoothly before launching your store.
Top Benefits and Challenges of Selling CBD Products on Shopify
There are several benefits of selling CBD products online, including:
- Access to a wider customer base
- Increased sales potential
- Lower overhead costs compared to running a physical store
However, there are also some challenges to consider when selling CBD products online, such as:
- The legal gray area surrounding CBD products
- The difficulty of finding a CBD-friendly payment gateway and shipping provider
- The need to comply with strict regulations and policies
These challenges can be daunting, but Shopify offers guidance and solutions to help businesses overcome them. For example, Shopify provides resources and a community forum for businesses selling CBD products to connect and share tips and advice.
The Growing CBD Industry and How to Get into it by Selling on Shopify
The CBD industry is rapidly growing, with a projected market value of $22 billion by 2022. Many businesses are looking to capitalize on this growth by entering the market and selling CBD products. For businesses looking to get into the industry, selling on Shopify is a great option.
Shopify offers a user-friendly platform, various templates and apps to customize your store, and a robust support system. Additionally, Shopify provides businesses with access to a wide range of potential customers, from CBD enthusiasts to first-time buyers.
For businesses looking to get into the CBD industry, it’s important to focus on creating a quality product, building a strong brand, and establishing trust and credibility with your customers. By providing transparency and compliance with regulations, you can set your business up for success in the growing CBD industry.
Real-Life Success Stories of Shopify Store Owners Selling CBD Products
Many businesses have successfully sold CBD products on Shopify. For example:
- Charlotte’s Web, a hemp-derived CBD company, uses Shopify to sell their products and generated $71 million in revenue in 2019.
- Nectar, a CBD wellness company, uses Shopify to sell their products and tripled their revenue in 2019.
From these success stories, businesses can learn the importance of providing quality and compliant products and creating a strong brand with an engaged customer base.
Conclusion
Overall, selling CBD products on Shopify can be a lucrative business opportunity for those willing to navigate the complexities of regulations and policies. By providing a quality product, complying with regulations, and building a strong brand, businesses can take advantage of the growing CBD industry and reach a wide range of potential customers.
For those considering selling CBD on Shopify, it’s important to do your research, follow guidelines, and seek advice from other businesses and experts in the industry. With the right mindset and approach, the CBD industry can be a rewarding and profitable niche for your business.