- 5 minute read
CBD, short for cannabidiol, has experienced a surge in popularity due to its potential health benefits. CBD’s unique legal status allows it to be sold online, unlike other cannabis-related products. This comprehensive guide will explore the world of selling CBD online, covering everything from the legal landscape to choosing the right eCommerce platform and getting started in this thriving industry.
The Legal Landscape of CBD Sales
Before delving into the eCommerce platforms, it’s crucial to understand the legal framework surrounding the online sales of CBD, which are influenced by federal and state laws.
Federal Laws:
At the federal level, CBD’s legality hinges on its source. The 2018 Farm Bill was a game-changer, removing hemp from the list of controlled substances and deeming hemp-derived CBD products legal, provided they contain less than 0.3% THC (tetrahydrocannabinol). THC is the psychoactive compound responsible for the “high” associated with marijuana. As a result, CBD derived from hemp is permissible for sale, manufacturing, and transportation across state lines.
However, note that CBD derived from marijuana remains illegal under federal law despite the legalization of marijuana in some states for medicinal or recreational use.
State Laws:
State laws concerning CBD can vary significantly, adding an extra layer of complexity for online retailers. While some states have embraced CBD and enacted comprehensive regulatory frameworks, others maintain strict restrictions or have not yet established clear guidelines.
To ensure compliance with state regulations, you must research and understand the specific laws in your state. Some states have additional requirements, such as licensing or product testing, which can affect your ability to sell CBD products online.
Choosing the Right eCommerce Platform
Selecting the right eCommerce platform is a critical decision when selling CBD online. Unfortunately, not all platforms are CBD-friendly due to the tricky legal landscape and potential risks associated with these products.
Luckily, several eCommerce platforms are open to CBD sales, provided sellers adhere to legal and regulatory requirements. Here’s a breakdown of platforms that either prohibit or allow CBD sales:
Prohibited Platforms:
- Amazon
- eBay
- Etsy
- TikTok
CBD-Friendly Platforms:
- Shopify permits the sale of topical and consumable hemp and/or hemp-derived CBD products by US merchants. However, it does not allow the sale of marijuana-derived CBD products.
- BigCommerce allows for the sale of hemp and hemp-derived products.
- Magento, Shift4Shop, WooCommerce, Dukaan, Wix, 3dcart, and Tophatter: These platforms allow the sale of CBD oil.
Be sure to review each platform’s policies and features to make an informed choice that works for you and your customers.
Getting Started Selling CBD online
Once you’ve navigated the legal landscape and selected an appropriate eCommerce platform, it’s time to get started with your online CBD business. Here are the essential steps to launch your venture successfully:
Decide What Products to Offer:
CBD products come in various forms, each catering to different consumer preferences. Before launching your online store, consider the following types of CBD products:
- CBD Isolate: Pure CBD without other cannabinoids or compounds.
- Full-Spectrum Hemp: Contains a variety of cannabinoids, including trace amounts of THC (less than 0.3%).
- Broad-Spectrum Hemp: Contains multiple cannabinoids but is THC-free.
Understanding these product types will help you curate a diverse and appealing product lineup for your customers.
Find a Product Niche:
Finding a niche in the highly competitive CBD market can set you apart from the competition. Focus on a specific product category or target a particular audience segment. Whether it’s CBD-infused skincare, pet products, or wellness supplements, carving out a niche can help you attract a dedicated customer base. Additionally, staying informed about industry trends and consumer preferences is crucial.
Find a CBD Supplier in Compliance with CBD Sale Regulations:
Sourcing high-quality CBD products from a reputable supplier is paramount. Look for a supplier who adheres to strict quality control and compliance with federal and state CBD regulations. Verify that their products are lab-tested and meet the legal requirements for THC content.
Also, ensure that your chosen supplier provides the necessary documentation to prove the legality and quality of their products. Building a solid partnership with a reliable supplier is key for long-term success in the CBD industry.
The Role of Payment Processors
In the world of online CBD sales, securing a reliable payment processor is imperative. Due to the perceived risk associated with CBD products, finding a payment processor willing to work with your business can be challenging, but it is possible.
Segpay is a high-risk payment processor with expertise in handling transactions for businesses operating in industries like CBD. Here are some ways in which we can assist your CBD business:
- Risk Mitigation: Segpay specializes in high-risk industries, which means we understand CBD sales’ unique challenges and risks and can help you navigate these challenges effectively.
- Compliance: We are well-versed in the legal and regulatory requirements of the CBD industry and can guide you in maintaining compliance with federal and state laws.
- Payment Options: They provide a range of payment options for your customers, making it convenient for them to purchase your CBD products online.
- Secure Transactions: With Segpay, you can ensure the security of your customer’s payment information, fostering trust and confidence in your online store.
- Reliability: Decades of experience and reputation in the high-risk payment processing industry make us a reliable partner for your CBD business.
Want to learn more about how we can help your CBD business?
Follow up with some more insights on the do’s and don’ts of payment processing in the CBD industry, and reach out to us to get started with your own business. Reach out to us with your questions at [email protected]
