If you consider selling CBD products on Shopify, it’s worth understanding the risks involved. The FDA is steadily cracking down on CBD businesses operating without following the required registration process.
As the marijuana and CBD venture grows, eCommerce platforms such as Shopify are witnessing a rise in CBD startups. For these enterprises to grow, merchants should get a merchant account to facilitate growth in the CBD industry. Once you have familiarized yourself with the relevant information, it becomes easy to sell CBD on Shopify.
How to Sell CBD on Shopify
To reduce the legal risk, you should contact a knowledgeable attorney first to help you understand the business’s numerous State and Federal regulations.
The next step would be to research and comply with the Shopify CBD policy and updates to ensure the platform does not cancel your merchant account. In addition, the laws surrounding cannabis are always changing, with more and more states permitting some levels of THC content. Therefore, ensure you get up-to-date information to keep your business on track with the authorities and Shopify.
Explore Shopify CBD Payment Processors to enable your CBD venture to be operational. At the moment, Shopify’s default payment processor does not process payments for marijuana-infused products. However, other payment processors with flexible policies will process your Shopify CBD account payments.
As a result, you will need to find a third-party payment option that will provide you with a high-risk merchant account since CBD is a high-risk venture due to its legality constraints.
Applying for CBD Merchant Account
Applying for an account to process payments will entail filling out a general form. Additional information will also be required throughout the application process, such as the state you are operating in and the number of sales you process monthly.
Your processor will then follow up with:
- Underwriting process- After all documents have been received, the payment processor will contact you if they need to ask for verification of relevant documents or regarding changes needed on your site.
- Approval process- Shopify will become a platform to monitor your account’s details and payments once your account has been verified. Then when your bank approves, you will begin receiving payments.
To always control your CBD Shopify account, you can get a simple portal via your financial institution for your payments.
CBD products you can sell on Shopify
American merchants in some states are permitted to sell marijuana or marijuana-derived CBD goods on Shopify. However, state regulations and laws controlling the vending of these products differ from state to state and are likely to change often. Therefore, contact an attorney on what and where you can sell your products before selling CBD.
Some common products are:
- CBD for Vaping
- Capsules and pills
- CBD edibles
- Atomizers and Sprays
Regardless of jurisdiction, Shopify merchants can sell any product on the platform that complies with Shopify’s terms & conditions, laws of the state, and the customer’s jurisdiction. Therefore, it’s always the responsibility of the merchants to ensure all related laws are complied with.
Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.