Experts agree that the CBD industry is about to explode and grow beyond what most people can imagine. Those who get into this market now have an opportunity to be a market leader in a few years. Dropshipping CBD is a great way to get started, especially with an online shop. But there are many factors to consider. Let’s evaluate the feasibility of dropshipping CBD through Shopify.
Dropshipping CBD through Shopify is possible, but there are a few legal guidelines to follow. Shopify provides a legal document to complete once you create your online shop. You also need a third-party payment processor, and SMS shipping notifications are not allowed. This regulation could vary based on your location.
Shopify allows the sale of hemp-derived CBD products on its platform, including dropshipping. There is a considerable bit of legal red tape, but nothing overly complicated. It is crucial to note that these legal processes are based on legislation in the United States, so anyone from outside the US should check with a local lawyer to avoid any legal entanglements.
Why Dropship CBD?
Dropshipping is a modern business marvel. The ability to sell products and have them shipped directly from the supplier to the customer makes it simple to start a small business online. CBD products are no exception, and many suppliers offer CBD dropshipping options to resellers.
One of the significant advantages of dropshipping is that you hold no stock yourself. There’s no risk of theft, no expensive storage space, and you don’t have to deal with couriers yourself. Suppliers will simply ship the product white-labeled so that their invoices are not included in shipments to the customer. Dropshipping makes sense for suppliers, too, since it helps to increase their sales and bottom line.
Dropshipping CBD can be profitable, although there are negative aspects. Hemp-derived CBD sales and dropshipping are now legal in most regions of the US and Europe, but there are restrictions. Some states oppose the legalization of CBD and other hemp products. This is bound to change, but at this time it is important to avoid delivering CBD products to areas where CBD sales are illegal.
When you dropship CBD, you should also find a reliable supplier known for excellent service, product quality, and stock availability. There are few things as frustrating for a dropshipping business as getting a paid order and then being unable to fulfill the delivery due to a stock shortage at your supplier.[1]
Using Shopify To Dropship CBD
As mentioned, Shopify is an ideal platform since it legally allows CBD sales and dropshipping. Shopify’s platform is easy to set up and use, and you can conceivably set up your website and have your first sales within a day. There are no technical or coding skills required to get started with Shopify. However, for CBD sales specifically, there are several requirements to adhere to.[2]
Shopify Payments Platform Is Not Available for CBD
Shopify has its own built-in payment processing platform called Shopify Payments. This makes it easy for Shopify users to accept payments in various forms, including credit cards, without too many difficulties. Unfortunately, this platform is unavailable to those who want to sell CBD products on Shopify.
These restrictions are because most banks still see the CBD and hemp industry as a high-risk investment. Financial institutions are often hesitant to get involved with CBD and hemp products out of fear of changing legislation. Most likely, CBD regulations will change over time and banks will recognize the advantage of getting involved in the industry, but for now, legal issues limit the number of available options for receiving payments.
It’s not all bad news, though. Shopify has partnered with three payment providers that are open to the CBD industry. These are:
- DigiPay[3]
- Pinwheel[4]
- Authorize.net[5]
Registrations for each of these platforms must be done separately. These payment providers have their own requirements that are independent of Shopify, but since the companies are in partnership, once your account has been opened and approved, linking them with your Shopify CBD dropshipping shop is a simple process.
There are alternative payment options that are not directly tied to Shopify but also offer CBD sales payment processing and can be integrated with a Shopify store. But, generally speaking, DigiPay, Pinwheel, and Authorize.net are probably your safest bet for CBD sales since these payment providers have partnered with Shopify.
SMS Notifications Are Not Allowed
Getting order and delivery notifications is an essential part of the online shopping experience. When customers order something online but don’t receive frequent communication, they can quickly get discouraged or even start thinking they fell for a scam, then try to cancel the order or get a refund.
Unfortunately, Shopify does not allow SMS order or delivery notifications for shops that sell CBD products. This regulation is not tied to Shopify but to cellular carriers in the United States. None of the US carriers legally allow commercial CBD communications since their networks cover all of the US, including areas where CBD is still illegal.
Shopify only allows email notifications for CBD shops. This is a setting that you may have to adjust manually, but it’s easy and straightforward to do from the Checkout Settings page in your Shopify shop’s back-end.
Only Ship to Legalized Regions
Shipping issues may be a rather tricky aspect to control. Since CBD has not been legalized everywhere and there are legal implications that differ from region to region, you may not be allowed to ship to some locations. Though you are not sending the items yourself, you are the middleman, and you have to ensure that your buyers cannot order a delivery to a region where CBD is illegal.
Shipping restrictions will depend on the location of your business and where it will operate. Still, you can finely configure your shipping regions within the Shopify back-end and disable shipping to areas that might cause problems.
Shopify’s Legal Attestation for CBD and Hemp
Before your Shopify shop is allowed to start selling CBD or other hemp-related products, even through dropshipping, Shopify will automatically take you to their “Attestation for the Sale of Hemp and Hemp-Derived Products” form. As the shop owner, you must read and agree to this document before CBD product sales are allowed. This is to keep Shopify legally compliant.
This form is not available to Shopify users outside of the United States, though. Stores managed outside the US may have to undergo different approval processes with Shopify’s admin team.
Shopify Pro Simplifies the Process
Dropshipping CBD products may seem like way too much effort. But it’s a relatively simple process compared to some of the alternatives. Yet, sometimes, all the hoops you must jump through to get your CBD dropshipping business launched may seem a bit overwhelming.
Thankfully, Shopify offers dedicated support and guidance to merchants that use Shopify Plus. Shopify’s Merchant Success team will guide and help you through every step of the process, making life easier for you and getting you ready to sell your CBD products in no time. [6] [7]
Conclusion
Dropshipping is a popular new way to sell products. CBD is a booming industry with a predicted multi-million growth rate. Shopify is a simple yet powerful online shopping platform that’s perfect for small home-based businesses. It’s almost as if CBD sales, Shopify, and small business ventures were made for each other. Any entrepreneur starting a CBD dropshipping business could find Shopify to be the best platform available to help drive sales.
References
[1] https://www.quora.com/Is-it-possible-to-dropship-CBD-products [2] https://www.quora.com/Why-it-is-difficult-for-CBD-business-to-get-integrated-on-Shopify [3] https://digipayinc.com/digipay-cbd/ [4] https://pinwheelpay.com/shopify-cbd.php [5] https://www.authorize.net [6] https://help.shopify.com/en/manual/products/cbd-products [7] https://www.linkedin.com/pulse/how-crush-content-marketing-seo-cbd-oil-e-commerce-websitein-gatto
