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Can I Dropship CBD on Shopify in ?
Last modified: October 3, 2023
If you’re wondering, ‘Can I Dropship CBD on Shopify?’ then you should consider the following points before you start. Dropshipping CBD on Shopify is a great way to earn money if you’re interested in CBD dropshipping business models.
However, it’s not as simple as listing products and watching the sales roll in. You’ll need to navigate legal requirements, find a reliable supplier, and choose a payment processor that supports high-risk industries. Plus, you’ll want to keep an eye on market trends to ensure your product offerings stay relevant. It’s a rewarding but complex venture, and doing your homework upfront can save you a lot of headaches down the line. We’ve been in the trenches of eCommerce for years, and we can tell you that preparation is key.
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Can you Dropship CBD on Shopify?
Yes, you’re able to dropship CBD on Shopify. However, it isn’t as easy as dropshipping other products like leggings, t-shirts, clocks, mouse mats or other objects. At the same time, it isn’t as challenging as it would be to create your CBD products and then ship them out.
Dropshipping CBD on Shopify is made more complicated because there are no apps to help you directly. Instead, you would need to take the products manually and then order them from your supplier. While this can be challenging, numerous CBD suppliers have processes that can help you. They often also have ways that they can collect your orders through spreadsheets.
What are the Costs?
There are numerous costs when it comes to starting a Shopify store. The first thing that you need to do is have a plan with Shopify. These start from just under $30 per month. Then you will also need to buy a theme. There are lots of themes available and the costs vary too.
There are several free themes that you can use and there are premium ones that can cost over $100. There are also some themes like Shoptimized and Booster that can cost you a monthly subscription or a high amount upfront.
You will also have the costs of the apps that you need. However, there are lots of free apps that you can use on your website to help you promote it. This can include some SEO apps, email marketing and more.
Costs for the products are less predictable, but costs for supplying the products will only be incurred when you have an order on your store. This makes it easier for you. No stock or inventory means that starting a business on Shopify is so much easier and more affordable than a traditional store.
Technically speaking, there is also no need for you to have premises. You can work from your dining room table, the lounge or even while traveling.
One of the top considerations that there are is the legal aspects of selling CBD on Shopify. In some states, there might be laws that make it harder to sell or ship to that location. Therefore, you should check with a lawyer on your business plans and what they would recommend.
Some apps can prevent certain audiences from accessing your website. For instance, geo-location apps and more.
Additional Insights on Dropshipping CBD on Shopify
Legal Considerations and Shopify Policies
Before diving into CBD dropshipping, it’s crucial to understand the legal landscape. CBD is legal in all 50 U.S. states as long as it contains less than 0.3% THC. In Europe, the limit is 0.2% THC. Shopify requires U.S. sellers to fill out an Attestation Form for the Sale of Hemp Products. Always consult legal counsel to ensure you’re in full compliance with the law.
Payment Processing Challenges
CBD is considered a “high-risk” product, which means standard payment gateways like Shopify Payments, PayPal, and Stripe won’t support your transactions. You’ll need to set up a third-party payment processor that specializes in high-risk industries. DigiPay is one such option that integrates well with Shopify.
Choosing the Right CBD Dropshipping Supplier
Your supplier can make or break your business. Look for suppliers that offer a range of high-quality, third-party-tested CBD products. Some of the industry leaders include CBD Essence, US Hemp Wholesale, and Eco Sciences. Make sure to check their shipping policies and whether they offer white-labeling or private labeling services.
Product Selection Tips
The CBD market is diverse, offering a range of products from edibles and drinks to skincare and pet products. When selecting products for your store, consider the following popular categories:
- Edibles: Cookies, candies, chocolates, protein bars, and gummies.
- Drinks: Energy & relax drinks, tea, and coffee.
- Sublingual Tinctures: CBD oils that are easily absorbed under the tongue.
- Supplements & Capsules: Easy-to-use but may have reduced potency due to digestive breakdown.
- Skincare & Beauty: Soaps, lotions, creams, and face serums.
- Pet Products: Treats, oils, and topical salves for dogs and cats.
CBD Market Trends and Projections
The CBD industry is booming, with online sales expected to grow from $2 billion in 2022 to over $6 billion by 2026 in the U.S. alone. The pet CBD market is also expected to reach $1.7 billion by 2025. Keeping an eye on these trends can help you make informed business decisions.
Benefits of Dropshipping CBD on Shopify
Dropshipping CBD on Shopify offers a level of legal clarity as the platform has outlined specific guidelines for selling CBD products. This legal framework aids sellers in navigating the complex legal landscape associated with CBD, ensuring compliance with federal and state laws.
Access to a Growing Market
The CBD market is experiencing exponential growth, with a surge in consumer demand for health and wellness products. Dropshipping CBD on Shopify allows businesses to tap into this lucrative market, offering a diverse range of products without the need for substantial upfront investment.
Flexible Payment Options
Although Shopify Payments isn’t available for CBD products, sellers have the flexibility to integrate third-party payment processors that support CBD transactions. This flexibility ensures seamless and secure transactions, enhancing the customer shopping experience.
Challenges of Dropshipping CBD on Shopify
Payment Processing Restrictions
One of the significant challenges is the restriction on using Shopify Payments for CBD products. Sellers must navigate through the process of integrating third-party payment gateways, which can sometimes be complex and require additional compliance checks.
Legal and Regulatory Hurdles
Despite the legal clarity offered by Shopify, CBD sellers still face a myriad of legal and regulatory hurdles. These include varying legal statuses of CBD across states and countries, requiring businesses to stay updated with the evolving legal landscape to ensure compliance.
Market Saturation and Competition
The booming CBD market has led to market saturation, with numerous sellers offering similar products. Dropshippers must focus on differentiating their products and brand, enhancing marketing efforts to stand out in the competitive landscape.
Conclusion: Can I Dropship CBD on Shopify
Can I dropship CBD on Shopify? Yes, you can, but there are certain rules, costs and disadvantages that you might need to consider. However, if you’ve got a good system, it can be a lucrative business for you.
Keep on reading about Dropshipping on Shopify. For example Best CBD Dropshipping Companies in  and Where to Find a CBD Dropshipping Supplier in . Both part of our Shopify Dropshipping Apps and Shopify Dropshipping Themes lists. You can read more about Dropshipping on Shopify with our ultimate Dropshipping on Shopify guide.
How can I educate my customers about CBD?
Providing educational content on your website can help inform customers about the benefits, uses, and legalities of CBD. This can build trust and help in marketing your products.
What are the best practices for storing CBD products?
Although this is more relevant for suppliers, understanding how products are stored can impact their quality. Ensure that products are stored in a cool, dry place, away from direct sunlight.
Can I sell CBD products internationally through dropshipping?
International sales can be complex due to varying legal regulations in different countries. It’s essential to understand the legalities in the target market countries before attempting to sell internationally.