Does Shopify Allow CBD Products? What Sellers Need to Know Before Starting

Selling CBD products on Shopify presents a unique opportunity for entrepreneurs looking to tap into the booming cannabis market. 

Since 2019, Shopify has allowed merchants to sell hemp-derived CBD products, provided they adhere to specific regulations. 

These include ensuring that all products contain less than 0.3% THC and comply with local, state, and federal laws. 

However, navigating the legal landscape can be complex, making it crucial for sellers to understand the requirements before launching their stores.

Merchants must also consider payment processing challenges. Due to the high-risk nature of the industry, Shopify does not support CBD sales through its payment gateway. 

This means sellers need to seek alternative payment solutions and remain vigilant about compliance to avoid potential legal issues.  

Read Also: Building a Secure CBD Shopping Experience with BigCommerce Development Services

Understanding the CBD Legal Landscape

CBD e-commerce has been a significant bone of contention regarding the industry’s viability and the legalities surrounding it.

On the one hand, a high-demand product category offers immense potential; on the other, however, there is a significant legal maze surrounding what some still consider narcotics.

Naturally, there have been reservations from e-commerce platforms regarding building and marketing CBD e-commerce businesses. 

The legality of CBD products is complex and evolving, depending on the federal and state laws governing their trade. 

At the federal level, the 2018 Farm Bill legalized hemp and hemp-based products as long as the THC content is below 0.3% – a welcome initiative. 

However, at the state level, laws vary from state to state, where one state has legalized CBD for recreational and medicinal use while others have still banned it. 

What Are Shopify’s Policies on CBD Products 

Before a CBD business builds a Shopify store, it needs to know Shopify’s policies on CBD products.

Here’s what you need to know:

Can You Sell CBD Products on Shopify?

Technically, Shopify allows the sale of CBD products on its platform; however, these products must comply with the 2018 Farm Bill’s prescribed THC limit. 

However, Shopify payments aren’t available to CBD businesses because these are high-risk products that require third-party payment processors.

Additional requirements for CBD products on Shopify include:

• Regular lab testing and results to ensure every product sold complies with the legal THC limit and relevant safety standards.
• U.S.-based merchants selling hemp products must complete an attestation process within Shopify’s admin. This confirms their understanding and compliance with applicable laws.
•  Adhere to strict FDA regulations on CBD marketing and avoid making unsubstantiated health claims.

State laws can vary from one state to the next, so a CBD business must consult a legal expert before setting up a CBD Shopify store.

Different Types of CBD Products Allowed on Shopify

Several different types of CBD products are available on the market, most of which are in high demand year-round. 

CBD e-commerce businesses must ensure their products comply with Shopify’s CBD policy, or the store could be banned and get into legal trouble. 

Permitted CBD Products on Shopify

There are five main types of CBD products allowed on Shopify that include:

• CBD oils and tinctures are the most commonly sold CBD products and are well-accepted by Shopify.
• CBD edibles include chocolates, gummies, and various CBD-infused treats that are popular among consumers.

• CBD topicals, including balms, lotions, creams, and salves, are used for external application.
• CBD capsules that are consumed orally.
• CBD pet products, including supplements and treats formulated for pets.

Prohibited CBD Products on Shopify

There are four types of CBD products prohibited on Shopify that include:

• Products with High THC Levels, i.e., exceeding the 0.3% THC limit set by the 2018 Farm Bill, are strictly prohibited.
• Selling CBD products without third-party lab testing to verify THC content and product purity is prohibited.
• Products making unsubstantiated health claims about CBD’s potential health benefits that are not scientifically proven or approved by the FDA.
• Selling CBD products to individuals under the legal age is prohibited and has serious legal repercussions.

The list of permitted and prohibited CBD products constantly changes, and staying updated on the legal landscape surrounding CBD products is essential. 

CBD stores that comply with this list should have no issues setting up their Shopify stores for CBD sales.

This next section discusses the intricacies of Shopify CBD stores and how businesses can benefit from this rapidly evolving industry. 

Setting Up Your Shopify Store for CBD Sales

CBD Shopify stores operate with the same basic infrastructure as regular Shopify stores everywhere until you begin adding on personalizations and CBD-specific features.

Here’s how to set up your Shopify store for CBD sales:

Create A Shopify Account

Visit the Shopify website, create a new account, choose a plan that suits your business needs, and go from there. 

Customize Your Store

Pick a visually appealing theme that aligns with your brand and the CBD industry. Many themes offer customization options to tailor the look and feel of your CBD store.

Next, add pages like “About Us,” “Contact,” “Shipping & Returns,” and a dedicated “Terms & Conditions” page that clearly outlines your CBD product policies.

You want the legal information to be clear and accurate to ensure every customer knows exactly what they’re purchasing and what it entails. 

Set Up Your Products

Begin by setting up your products:

• Add products and create product pages for each CBD product you offer.
• Use professional, high-resolution images of your products that clearly show the customer what they’re getting. 
• Write accurate and concise product descriptions, including ingredients, potency, and intended use.
• Publish lab test results and display the links to third-party lab test results that verify THC content and product purity.

Once again, ensure that all information is updated and accurate, as even the slightest inaccuracies can result in legal trouble. 

Pick A Payment Processor

CBD stores also encounter issues with payment processors because CBD products are categorized as high-risk and, therefore, avoid processing payments. 

Shopify Payments does not support CBD sales, meaning CBD businesses need to find alternatives that work.

CBD businesses should consider these factors when picking a payment processor for their CBD Shopify store:

• Compare processing fees and other charges.
• Ensure the payment processor integrates with your Shopify store.
• Pick a processor with excellent customer support.

The three best CBD-compliant payment processors include:

Bankful

Bankful is a recent entrant in the payment processing market. It supports online payments for CBD through Shopify and other e-commerce platforms like WooCommerce and BigCommerce.

NMI

NMI supports various payment methods, such as credit and debit cards and ACH, giving customers multiple options to pay for CBD products.

Additionally, the CBD business has access to various transactional insights, which allows the company to know how well things are going.

Square

Square is one of the largest payment processing companies in the world. In 2019, it began supporting CBD transactions.

Square is a great payment processing option for CBD merchants with high- and low-volume sales. 

It helps growing and established businesses expand their operations thanks to extensive payment support.

Read Also: Overcoming Payment Processing Challenges in the CBD Industry with BigCommerce

Design The Shopify Store

Once the infrastructure and payment processing are in place, the next step is to design a CBD Shopify store to sell in a highly competitive market. 

Design Considerations For CBD Shopify Stores

When designing a CBD Shopify store, here’s what you need to know:

• It is essential to maintain a professional and trustworthy appearance.
• Ensure the store is fully responsive and looks great on all devices (desktops, tablets, and smartphones).

Clear and Concise Information:

• Use clear and concise language in product descriptions to highlight their features and potential benefits.
• Be clear on your shipping and return policies and applicable warranties.
• Always include a disclaimer on the website stating that CBD products are not intended to diagnose, treat, cure, or prevent any disease and should be used only as directed.
• Build a strong brand identity that resonates with your target audience.

When designing a Shopify CBD store, it is essential to combine form and function to ensure the store looks and runs better than the competition. 

Next, we discuss the complexities surrounding marketing CBD products and how to get a high-risk product in front of its target audience.

How To Market CBD Products 

We’re now at the tail end of our blog and have covered most of the essentials surrounding a CBD Shopify store. 

This section expands on how to market CBD products, given that it is a complex, high-risk product that cannot be marketed conventionally. 

While traditional content marketing strategies can be used to market CBD products, they must be amended. 

These are the components of a CBD marketing strategy:

Content Marketing:

• Write informative blog posts about CBD, its potential benefits, and how to use your products to educate customers. 
• Combine blogs with guides, infographics, and videos to further educate customers about CBD.   

Social Media Marketing:

• Use social media platforms to reach your target audience with targeted advertising.   
• Routinely share valuable content, run contests, and interact with your followers to boost engagement and familiarity with the brand.
• Dip into influencer marketing and collaborate with relevant influencers to promote your products to their audience.   

Email Marketing:

• Collect email addresses from website visitors and customers and build an email list.   
• Send targeted email campaigns with exclusive offers, product updates, and educational content.   

Search Engine Optimization (SEO):

• Conduct keyword research to identify keywords related to CBD and your products.
• Use on-page optimization on your website and product pages with relevant keywords.   
• Use off-page optimization to build high-quality backlinks from other reputable websites to your website.

Conclusion

Entering the CBD market with Shopify is a promising opportunity for entrepreneurs looking to tap into a rapidly growing industry. Shopify’s clear policies on hemp-derived CBD and its user-friendly platform make it a solid choice for sellers. However, BigCommerce emerges as the superior eCommerce platform for CBD businesses.

BigCommerce offers unmatched flexibility with 55 payment gateways supporting over 250 currencies and regions. As an Open SaaS platform, it simplifies payment processing, branding, marketing, and optimization, while also streamlining returns management. This comprehensive approach makes BigCommerce an ideal solution for CBD sellers.

See: Grow Your BigCommerce CBD Store With Folio3

Success in this space, however, requires a deep understanding of legal regulations, compliance requirements, and effective marketing strategies. Staying informed about the evolving legal landscape and ensuring your products meet all guidelines are critical steps for thriving in the CBD industry.

By navigating these complexities strategically, you can establish a strong foundation for long-term success in this lucrative and rapidly expanding market.