How to Sell CBD on Shopify

Posted by The Smoke Drop Admin on

Shopify announced in mid-September that it is extending the ability to sell cannabidiol (CBD) on the platform to U.S. merchants selling online or through brick-and-mortar stores. After originally offering this courtesy to Canadian merchants in 2018, Shopify has positioned itself to take part in the booming CBD industry that’s expected to reach $20B by 2024. In this post, we will explore all of the requirements, guidelines, and nuances to consider before launching your CBD store on Shopify.

How to get started

Before registering for a new Shopify store or selling CBD products on an existing store, Shopify recommends consulting with an attorney. This is mainly a result of the evolving CBD and hemp laws in the U.S.. In a message to merchants interested in selling CBD on the platform, Shopify states it cannot provide advice on what or where you can sell regarding CBD products.

If you’re looking for accurate information regarding the regulation of cannabis and cannabis-derived products, check out the FDA website.

Now let’s review how new and existing Shopify merchants can start selling CBD.

New Merchants

To start a new hemp or CBD Shopify store, first sign up for a free trial here - https://www.shopify.com/sell/cbd. This trial is customized specifically for hemp/CBD merchants.

After starting your free trial, you will be required to complete a CBD attestation. This document outlines requirements set by Shopify to sell CBD and hemp products on the platform. Completion of this form is required to sell CBD products on Shopify.

Following completion of the attestation, you’ll be prompted to apply for a third-party payment gateway. Typically, new Shopify stores are able to use Shopify Payments, however Shopify Payments is not available for merchants selling hemp or CBD products. 

Shopify offers a shortlist of third-party gateways that support the sale of certain CBD and hemp products:

New merchants will need to apply directly to a payment gateway and can only sell CBD or hemp products after approval. Expect a more in-depth approval process due to the vetting process of payment gateways for hemp-derived product transactions. 

Existing Merchants

The process is similar for existing Shopify merchants. Rather than signing up for a free CBD trial, your first step will be to review and submit the CBD attestation. Following submission of the document, existing merchants will also need to select and apply for a third-party payment gateway.

Considerations

As stated earlier in the article, Shopify cannot offer legal advice for merchants interested in selling CBD products. However, there are a number of considerations Shopify suggests merchants understand before and after they are able to sell CBD products on the platform.

Attestation for the Sale of Hemp and Hemp-Derived Products

The attestation form outlines Shopify's requirements for merchants selling hemp and/or hemp-derived CBD products in the US. 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. For example, in the attestation merchants must confirm that none of their hemp or hemp-derived products are marketed as having any medicinal or therapeutic benefit unless such claims have been approved by the FDA. Merchants are responsible for ensuring that their store remains compliant with all requirements of the attestation.

States Shopify supports CBD merchants in (as of September 26, 2019)

Below is a list of states that Shopify currently supports. US laws surrounding hemp and hemp-derived CBD are quickly evolving, and this list will be updated as Shopify becomes aware of relevant changes regarding the sale of hemp or hemp-derived CBD products in specific states.

Supported states:

Alabama

Arizona

Arkansas

California

Colorado

Florida

Georgia

Illinois

Indiana

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Missouri

Montana

Nevada

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Carolina

Rhode Island

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming


Where to find CBD products

Sourcing CBD products to dropship on Shopify can be difficult. With the numerous regulations and need for quality assurance, many merchants waste a lot of time and money trying to located reliable vendors for their CBD shop.

Smoke Drop was created to offer merchants a streamlined, automated solution for finding and dropshipping head shop/vape products to customers. We partner with leading vendors and manufacturers in the industry to source quality products with fast shipping and high margins.

As Shopify continues to support U.S. businesses interested in selling CBD products, we will expand our catalog to include CBD and hemp-derived products for merchants with a desire to take part in this booming market.

Get the Smoke Drop Shopify app today and browse our CBD collection for products you can sell on Shopify. Our assortment of head shop and vape products often serve as perfect upsells for merchants looking boost AOV.

Can’t find the products you’re looking for? Let us know! We are continuing to build out our CBD catalog, but are always looking for vendor and product recommendations. Shoot us an email at carly@thesmokedrop.com with any vendors or products you’d like to see in the app.

Final Note from Shopify

It is important that you know your responsibilities. Like all Shopify merchants, it’s your responsibility to follow federal, state and local laws and the respective policies of Shopify, our app and partner ecosystem, and any third-party providers. If you have additional questions, please review this FAQ doc for more information, contact the third-party providers directly, or consult with an attorney.


Share this post



← Older Post