Is It Possible to Use Shopify to Sell CBD Online?
The industry surrounding CBD is fluid and ever changing. As a result of this, regulations and laws tend to vary from one jurisdiction to another. You must consult with a lawyer on how to sell CBD online in your state before doing so and make sure that your future store will be supporting best practices.
Merchants interested in selling CBD online and based within the United States can sell hemp-derived CBD products on Shopify. While Shopify allows merchants to sell their CBD products online, the platform does not offer guidance on what merchants, individuals, or entities can sell. However, it does employ merchants selling CBD online to monitor and review local, state, and federal laws.
It is also important that merchants concentrate on any updates that regulatory agencies might have. The FDA is one such agency that merchants in the U.S. must watch regularly for any updates.
How to sell CBD online using Shopify
The first thing you will need to do when you want to sell CBD online is to create a Shopify store if you do not have one already. Since Shopify is simply a selling platform, you will have to carefully review the Attestation for the Sale of Hemp-Derived Products.
This is a document that Shopify requires merchants to sign before they can use its platform to sell their hemp-derived CBD products. It asks if you’re the store owner and where your store is located within the US before you can submit the form. Once the form is submitted and you are approved, you can then begin selling CBD online on the platform.
What about Shopify payments?
Considering that Shopify is a selling platform, you might assume that you will be using its payment program with your store. However, this is not the case as Shopify payments cannot be used for CBD or hemp products. You will have to settle for a third-party, unaffiliated payment system.
In order to help with this, Shopify has partnered with popular payment platforms that actively support hemp-derived products. The requirements each external payment service offers typically vary. You must pay close attention to the rates you are offered and factor these into your total costs, as well as state laws.
You should bear in mind that CBD is still a controlled substance, so transactions resulting from the sale of CBD products are monitored much more carefully than other types of transactions. In some cases, the process of applying for financial approval might be slightly more of a challenge than other types of products.
This is because there are numerous factors taken into account by outside, unaffiliated payment systems when facilitating transactions carried out for Shopify merchants selling CBD online. These factors include:
- When the business was founded
- The type of product you are selling
- The product contents
- Volume of transactions
- Your transaction history
As these payment systems are not owned by Shopify, the endorsement of your store is subject to discretion and it is not guaranteed that you will gain approval. It is also imperative that you are aware of your responsibilities as a merchant.
As with all products you sell on Shopify, it is important to follow all respective policies, laws, and rules.