Can I sell CBD on Shopify

Yes—you can sell CBD products on Shopify, but you cannot use Shopify Payments for checkout. Instead, you must:

1. Choose a compatible payment gatewayShopify Payments doesn’t support hemp-derived or CBD products. Instead, select one of Shopify’s integrated third-party providers that explicitly allow CBD (for example, Adamant Payments, Adaptiv Payments). Adaptiv Payments offers support for CBD and Shopify.
2. Meet Shopify’s hemp-selling requirementsIf you’re a U.S. or Canadian merchant, you must agree to and comply with Shopify’s specific guidelines on labeling, testing, and jurisdiction for hemp/CBD products.
3. Maintain regulatory compliance• Keep Certificates of Analysis (COAs) on file, confirming THC ≤ 0.3%• Follow all federal, state, and local rules for sale and shipping• Avoid unapproved medical claims in your marketing
4. Configure your Shopify store• In Settings → Payments, disable Shopify Payments.• Add your chosen CBD-friendly gateway under Alternative payment methods.• List your CBD items with clear ingredient and THC-level disclosures.

Once these steps are in place, you can promote and sell CBD products on Shopify just like any other SKU—while keeping your store fully compliant and your transactions secure.

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This article will guide you through the process of selling CBD on Shopify, from understanding legal requirements to selecting the right payment processors. We'll also explore effective marketing strategies and address common challenges faced by CBD entrepreneurs. By the end of this guide, you'll have a comprehensive understanding of what it takes to successfully sell CBD products on Shopify, giving you a head start in this competitive market.

Understanding the Legal Landscape of CBD Sales

Selling hemp products presents unique challenges because of the complex US laws around them. Before setting up your Shopify store, it's crucial to comprehend the legal framework surrounding CBD. Cannabidiol, or CBD, is derived from the hemp plant and is permissible in many jurisdictions, provided it contains less than 0.3% THC. However, legality can vary significantly from one location to another, influenced by federal, state, and local laws. This patchwork of regulations can be daunting, but understanding it is vital to avoid repercussions.

Federal Regulations

In the United States, the 2018 Farm Bill legalized the cultivation of hemp and removed it from the list of controlled substances. This opened the door for CBD products derived from hemp, but the Food and Drug Administration (FDA) continues to regulate CBD-infused products, particularly those intended for consumption.

The FDA's stance on CBD is that it cannot be marketed as a dietary supplement or added to food and beverages without its approval, which is an important consideration for any CBD business. This includes “infused” products, like ingestibles and topicals, which are still being examined by the FDA.

Additionally, the FDA has been actively issuing warning letters to companies that make unsubstantiated health claims about their CBD products. It's crucial for entrepreneurs to stay informed about FDA guidelines and market in accordance with the law. Understanding nationwide regulations is just the first step; understanding state and local laws is equally important.

State and Local Laws

While federal law may permit the sale of CBD, individual states and municipalities can impose their own restrictions. Most states allow you to sell products with less than 0.3%, in line with federal regulations, but there are exceptions. Idaho and Kansas clarify that any product must have 0% THC. Despite marijuana being legal, Ohio has recently banned the sale of “intoxicating” hemp-derived products.

While hemp-derived products are legal in most places, cannabis-derived CBD is still under scrutiny. It is only allowed for medicinal purposes in these states:

• Utah
• New Mexico
• North Dakota
• Kansas
• Texas
• Minnesota
• Iowa
• Missouri
• Arkansas
• Louisiana
• Wisconsin
• Tennessee
• Mississippi
• West Virginia
• North Carolina
• South Carolina
• Georgia
• New Hampshire
• Connecticut
• Delaware
• Maryland

All cannabis-derived products are illegal in these states:

• Wyoming
• South Dakota
• Florida
• Virginia

Moreover, local regulations can add another layer of complexity. Some cities or counties may have additional restrictions or require local permits. Keeping abreast of these varying laws is crucial to maintaining compliance and avoiding fines or business interruptions. Consulting with a legal expert familiar with the laws in your area can be invaluable.

Setting Up Your Shopify Store for CBD Sales

Now that you've explored the regulatory landscape, it's time to set up your Shopify store. Shopify is a popular platform for e-commerce businesses, offering a user-friendly interface and a multitude of customization options. However, selling on Shopify requires some additional steps, primarily due to the legal complexities surrounding these products.

Shopify's Policy on CBD

Shopify allows the sale of hemp-derived CBD products, but merchants must adhere to specific guidelines. First, you'll need to prove that your products comply with all applicable laws and regulations. Additionally, you must be based in a state where the sale of CBD is permitted.

Furthermore, Shopify requires merchants to disclose detailed information about their business, including where their products are sourced and how they are marketed.

Creating a Compliant Store

To sell CBD on Shopify, you'll need to:

1. Verify Your Products: Ensure that your products are hemp-derived and contain less than 0.3% THC. This is a critical step, as failing to meet this requirement can lead to complications.
2. Select a Compatible Payment Processor: Not all payment processors allow CBD transactions. Shopify Payments does not support this industry, so you'll need to choose a third-party gateway. Thankfully, there are many alternatives.
3. Include Necessary Disclaimers: Clearly state any disclaimers regarding the legality and effects of CBD on your website. Transparency with your customers about the nature and limitations of CBD products can build trust and prevent potential issues.

In addition to these steps, consider investing in quality assurance measures to ensure your products consistently meet all standards. Regular testing and certification can bolster your credibility with customers and regulatory bodies alike.

There are several excellent themes for Shopify startups that are custom-designed for these products, such as the following.

Canabuzz: Made for medical marijuana shops, this theme lets users filter and bundle products. You can use the drag and drop sections to customize your layout, or enjoy the pre-made homepages for even greater simplicity.

Esrar: Like Canabuzz, this one was specifically designed for marijuana and hemp shops. It also uses drag-and-drop layout design and hover effects that add visual appeal.

Horizon: This free Shopify theme has AI-generated content blocks that make it easier to populate your product pages. One of its best features is advanced search so users can find what they want very quickly.

Adding apps can help you streamline your operations, such as Enzuzo for compliance, ReCharge for subscriptions and automated purchases, and Judge.me for reviews.

Choosing a CBD-Friendly Payment Processor

Shopify Payments cannot be used under any circumstance to sell these products. However, other payment processors are designed for high-risk industries and can help you accept multiple payment types.

Recommended Payment Processors

1. Circopay - Specialized in high-risk merchant accounts for industries ranging from CBD and nutraceuticals to telemedicine, travel and subscription services. By combining industry-specific underwriting with advanced fraud protection and chargeback mitigation, Circopay helps businesses minimize payment disruptions. Their seamless integrations with major e-commerce platforms and dedicated account management ensure fast approvals, transparent pricing and ongoing compliance support for even the riskiest verticals.
2. Adamant Payments - Adamant Payments delivers tailored high-risk merchant accounts across industries such as CBD, nutraceuticals, telemedicine, and travel. With robust fraud protection, chargeback prevention tools, and specialized underwriting, Adamant Payments ensures businesses stay compliant and reduce payment interruptions. Their easy integration with leading e-commerce platforms, transparent fee structures, and dedicated support team guarantee fast approvals and reliable processing for even the most challenging verticals.
3. Square - Known for its versatility, Square offers a CBD program specifically designed for merchants selling hemp-derived CBD products. Their program includes comprehensive support and straightforward pricing, making it an attractive option for many businesses.
4. Kosipay - This processor specializes in high-risk transactions, making it a viable option. Kosipay offers tailored solutions to meet the unique needs of these merchants, ensuring compliance with all relevant regulations.
5. eMerchant Broker - Another processor that supports CBD sales. Their experience with high-risk industries means they understand the specific challenges faced by hemp-derived product businesses and can offer customized solutions to meet your needs.

Important Considerations

When selecting a processor, consider factors such as transaction fees, integration capabilities, and customer service. It's also important to ensure that the processor complies with all relevant regulations and guidelines. Look for a processor that offers clear communication and support, as this will be crucial in addressing any issues that arise.

Additionally, consider the processor's reputation and track record in handling CBD transactions. A processor with a strong reputation is likely to offer reliable and stable service. Making an informed decision about your payment processor is vital for the long-term success of your business.

Marketing CBD Products on Shopify

With your store set up and a payment processor in place, it's time to focus on marketing your CBD products. Effective marketing strategies can help you reach a wider audience and drive sales. In the competitive CBD market, standing out requires creativity and a deep understanding of your target audience.

SEO and Content Marketing

Optimizing your website for search engines is critical for attracting organic traffic. Use relevant keywords such as "CBD products," "hemp-derived CBD," and "CBD benefits" to improve your search rankings. Additionally, consider creating educational content that informs consumers about the benefits and uses of CBD. This not only improves your SEO but also positions your brand as an authority in the CBD space.

Developing a blog or resource center with articles, guides, and FAQs can attract potential buyers looking for information about CBD. Providing valuable content can build trust with your audience and encourage them to choose your products over competitors'. Regularly updating your content and engaging with your audience through comments and social media can further enhance your brand's visibility and credibility.

Understanding Your Target Audience

CBD appeals to a diverse range of consumers, from health enthusiasts to individuals seeking alternative remedies. Identifying your target audience is essential for crafting targeted marketing campaigns. Understanding their needs, preferences, and behaviors can help you create more effective and personalized marketing messages.

Consider conducting market research to gather insights into your audience's demographics and psychographics. This information can guide your product development and marketing strategies, ensuring they resonate with your audience. By understanding what motivates your customers, you can tailor your approach to better meet their needs and build stronger connections.

Social Media and Influencer Marketing

Leverage social media platforms to showcase your products and engage with your audience. Platforms like Instagram and Facebook are ideal for visually appealing content that highlights the benefits and lifestyle associated with your CBD products. Engaging with your audience through comments, stories, and live sessions can build a loyal community around your brand.

Collaborating with influencers in the health and wellness space can also enhance your brand's visibility and credibility. Influencers can introduce your products to their followers, providing social proof and increasing your reach. Choose influencers whose values align with your brand and who have a genuine interest in CBD to ensure authentic and effective partnerships.

Navigating Potential Challenges

Selling CBD online is not without its challenges. From restrictions in certain regions to payment processing hurdles, it's essential to be prepared for potential obstacles. Proactively addressing these challenges can help you maintain smooth operations and avoid disruptions.

Legal Compliance

Staying informed about changing classifications and new compliance mandates is paramount. It’s your responsibility to determine your compliance status and make necessary adjustments.

Consider consulting with legal counsel who specializes in CBD regulations to avoid potential pitfalls. A knowledgeable attorney can provide guidance on everything from labeling requirements to marketing practices so that your business can succeed.

The Shopify logo and CBD items

Credit: Adaptiv Payments

Payment Processing and Banking

High-risk transactions can complicate banking relationships. Be transparent with your bank about your business model to prevent account closures or freezes. Building a strong relationship with your bank and payment processor can help mitigate potential issues and maintain access to essential financial services.

Additionally, consider having a backup payment processor in place. This can provide a safety net in case your primary processor experiences issues or decides to cease handling CBD transactions. Being prepared for such scenarios can prevent disruptions in your business operations.

Shipping and Logistics

CBD products may face restrictions when it comes to shipping. Partnering with a shipping provider familiar with CBD logistics means your customers get their deliveries right on time. They can help you manage the complexities of shipping CBD products, like filling out required forms.

Consider offering a range of shipping options to meet the needs and preferences of your customers. Providing reliable and efficient shipping can enhance customer satisfaction and encourage repeat business. Staying informed about changes in shipping regulations and adapting your logistics strategy accordingly is essential for maintaining a successful CBD e-commerce operation.

Conclusion

Selling CBD on Shopify is entirely feasible with the right approach and preparation. By understanding the legal landscape, selecting a suitable payment processor, and implementing effective marketing strategies, you can successfully tap into the growing CBD market. Stay informed, remain compliant, and watch your CBD business thrive. With diligence and dedication, you can overcome the challenges and capitalize on the opportunities in this exciting and evolving industry.

FAQs about Selling CBD on Shopify

Is it legal to sell CBD on Shopify in all U.S. states?

No, it is not. While products with less than 0.3% THC by dry weight have been legalized through the 2018 Farm Bill, some states have stricter laws, such as only allowing hemp products by prescription. If you want to sell in the United States, you must complete the "Attestation for the Sale of Hemp and Hemp-Derived Products," which maintains compliance. It’s highly recommended to work with an attorney before launching your shop.

Can I use Shopify Payments to sell hemp-derived CBD?

No, you cannot. Shopify Payments cannot be used for processing payments. If you attempt to offer this as a payment options, the Shopify admin may ban you. You will need to seek a different option.

What are the best payment gateways for CBD on Shopify?

Authorize.Net, DigiPay, and NomuPay are all high-risk processors that specialize in these industries.

What certifications or lab results do I need to sell CBD online?

You need a Certificate of Analysis (COA) from a third-party lab for every batch of product. The lab must be registered with the DEA, and you may need a special license to sell in certain states.

Can I market CBD products through email or social media from my Shopify store?

Yes, but this may be more challenging, as some email marketing platforms like Mailchimp will not work with you. Newer platforms, such as Drip and Klayivo, are more open to email marketing for high-risk industries. You cannot send SMS messages to customers on Shopify.

Facebook, Instagram, TikTok, and Google prohibit direct paid marketing, but you can rely on organic marketing or partner with influencers. X is more friendlier to hemp products, provided that you market only to those 21 and older.