The Complete Guide to Selling CBD on Shopify: Rules, Tips, and Best Practices

The CBD market is experiencing rapid growth, with this surge representing a significant opportunity for eCommerce businesses to tap into a lucrative niche. 

As consumer interest in CBD products rises, retailers can leverage online platforms to reach wider audiences and offer a diverse range of products, from wellness items to beauty solutions.

Shopify has emerged as a popular choice for selling CBD products due to its user-friendly interface and robust features tailored for cannabis and hemp businesses. 

This article will explore the essential aspects of selling CBD on Shopify, including legal regulations, practical tips, and best practices for success. 

Additionally, we discuss alternatives like BigCommerce to provide a comprehensive overview of your options in the CBD eCommerce landscape. 

See Also: Choosing The Best E-commerce Platform for Online CBD Businesses

Can You Sell CBD Products On Shopify?

A booming CBD industry needs a global e-commerce platform like Shopify to benefit from a powerful and easy-to-use platform. 

However, CBD e-commerce is significantly more complicated than traditional e-commerce because CBD products are deemed high-risk.

Here’s what CBD stores must know when selling through Shopify:

Shopify Regulations Regarding CBD

In The USA

In the United States, CBD businesses can sell hemp-derived CBD products complying with the 2018 Farm Bill, i.e., products containing less than 0.3% THC.

As long as CBD products are sold with less than 0.3% THC, Shopify allows CBD e-commerce in the USA.

Rest Of The World 

Internationally, Shopify’s CBD policy depends on which country you’re selling it in and what CBD’s legal status is in that location. 

If CBD products are illegal in that country, Shopify does not allow stores to list or sell these items there. 

Compliance Requirements 

CBD businesses that sell on Shopify must follow these compliance requirements:

• Ensure the business has the necessary licenses and permits to sell CBD products in your jurisdiction.
• The businesses should consider obtaining third-party certifications for product quality and safety, e.g., from the U.S. Hemp Authority.
• The CBD stores should provide lab test results to verify the product’s cannabinoid content and purity.
• Implement age verification measures to comply with regulations and protect minors.

Following the proper compliance requirements ensures the CBD stores are legally in the clear and isnt involved in anything illegal. 

Building A Shopify Store for CBD Products

Once the CBD business sorts its legalities out, the next step involves Shopify store development, taking care of the form and function of the store. 

Pre-development Considerations

Before you begin building a Shopify store for CBD products, it’s important to consider:

• Understanding scalability and how the company expects the business to perform in the short and long term. Understanding where the store is and where it will be in the future.
• Shopify’s transaction fees are charged on each sale and differ depending on which Shopify plan you pick.
• Certain Shopify plans offer better support for CBD businesses, which the company should consider before picking one. 

Payment Processors on Shopify 

Getting a payment processor to agree to sell on Shopify is a major issue that prevents most CBD stores from setting up an e-commerce presence.

CBD products are considered high risk because of the legal maze surrounding them, keeping payment processors away.

Using traditional payment processors often results in frequently declined transactions, chargebacks, and closed accounts. 

Recommended CBD-friendly payment processors:

• PaymentCloudcspecializes in high-risk industries, including CBD, offering competitive rates and reliable services.   
• Payline is a popular option for CBD businesses, providing flexible payment solutions and fraud prevention tools.
• Stripe may have stricter policies regarding CBD, but it’s worth exploring their options and checking for any updates in their guidelines.

Tips for avoiding chargebacks and ensuring secure transactions:

• Use clear, accurate, detailed product descriptions to minimize confusion and disputes.
• Have transparent shipping policies and communicate them clearly, including estimated delivery times and tracking information.
• Offer excellent customer service by responding promptly to customer inquiries and resolving issues efficiently to prevent chargebacks.
• To protect customer data, offer a secure checkout process and implement strong security measures, such as SSL encryption.

Essential Shopify CBD Store Design Tips

With so many businesses using Shopify, you want a store that stands out visually, capturing the customer’s attention. 

Here’s how to improve your Shopify CBD store’s design:

Creating A Visually Appealing Storefront For CBD and Hemp Products:

• Using a clean and minimalist design helps create a professional and trustworthy impression.
• Use high-resolution images to showcase your products in detail, helping the customer decide. 
• Ensure your store has easy navigation, with clear categories and search functionality.

Showcasing Product Benefits, Certifications, And Legality To Build Trust:

• Ensure the product descriptions highlight the specific benefits of each product and how they can improve customers’ well-being.
• Display any certifications or lab test results to demonstrate product quality and safety to build trust in the brand. 
• Clearly state your compliance with all applicable laws and regulations, including age verification requirements.

Developing Marketing Strategies for Shopify Cannabis and Hemp Stores

It isnt enough for you to have a great product; it needs to be appropriately marketed to the right eyes to generate more revenue. 

However, there’s always a caveat regarding the CBD industry due to the regulatory labyrinth it needs to navigate through. 

Major social media platforms (Facebook, Instagram, YouTube) prohibit advertising CBD products, forcing CBD brands to consider alternate solutions such as:

Using SEO

• Target long-tail keywords related to your products, such as “CBD oil for anxiety” or “hemp-derived skincare.”
• Optimize product pages with the relevant keywords in product titles, descriptions, and meta tags.
• Build high-quality backlinks from reputable websites to improve your domain authority.

Using Influencer Marketing 

• Partner with micro-influencers who have a smaller but highly engaged audience.
• Create authentic content and encourage influencers to create genuine content that resonates with their followers.
• Track ROI with tracking codes to measure the effectiveness of influencer campaigns.

Building A Content Marketing Strategy

• Use blogging to publish informative posts on topics like CBD benefits, usage tips, and industry news.
• Build an email list and send regular newsletters with product updates, promotions, and educational content.
• Use social media marketing on platforms like Instagram and TikTok to share visually appealing content, engage with followers, and run targeted ads.

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

Shopify vs. BigCommerce for CBD e-commerce 

Shopify’s biggest competition in the CBD e-commerce space comes from BigCommerce and with good reason. 

This table compares the two for CBD e-commerce:

Conclusion 

Selling CBD on Shopify presents a unique opportunity to tap into a growing market, but success requires a clear understanding of the rules and best practices. 

By adhering to legal regulations, optimizing your product listings, and implementing effective marketing strategies, you can build a reputable brand that resonates with consumers.

Stay informed about industry trends and continuously refine your approach. 

Engage with your audience through quality content and responsive customer service to foster loyalty and trust. 

With the right tools and mindset, you can navigate the complexities of the CBD market and achieve sustainable growth on Shopify.

See Also: Grow Your BigCommerce CBD Store With Folio3