CBD products have become all the rage for those who are desperately seeking natural means to relieve chronic pain, offset anxiety and depression, ease complications from diabetes, and even treat opioid addiction, just to name a few.
Cannabidiol or CBD is the chemical compound that is found in the cannabis Sativa plant. When you apply this substance topically or is edible consumed or taken via smoke inhalation, CBD interacts with neuroreceptors within your endocannabinoid system. It then sends signals between your cells which can support the regulation of your mood, movement, and immune system.
Recent studies show that CBD’s therapeutic benefits are contributing to a booming CBD market. In a recently published report by Kenneth Research, the Global CBD Market is to reach USD 22,07,162.54 Million by the year 2026.
According to the National Center for Biotechnology Information (NCBI), it was found that 62% of the population had used CBD to treat a medical condition.
CBD Businesses Are Considered High-Risk
Due to the ever-evolving regulations involved in the selling of CBD products, the industry falls under the category of being “high-risk”. Therefore, finding merchant services and payment processors can be challenging.
What contributes to landing you in legal hot water is the prevailing misunderstanding that CBD is marijuana. This is in spite of the fact that there is no THC in them. THC is the psychoactive compound found in marijuana. Due to the even slightest threat of legal action, this further sinks the business into high-risk waters.
It is true that medical marijuana has been made legal in certain states in the country, but there is nothing to guarantee that the government and its legislation will continue to progress in this direction. Repercussions are always possible.
There is always a risk for chargebacks as well. If the CBD product does not deliver on the relief that the consumer seeks, they will ask for their money back.
Selling CBD Products On Shopify
As the studies have shown, selling CBD in your e-Commerce store is highly lucrative. The issue that confronts many merchants new to this market is how to navigate all the risks inherent in the industry.
What is recommended is that small to medium-sized CBD businesses seek a merchant account that specializes in CBD products and the industry.
The good news is that CBD products can be sold on Shopify, however, it can be complicated.
One of the first steps you will need to take is to fill out an “Attestation for the Sale of Hemp and Hemp-Derived Products” form and send it back to Shopify. In that form, you will need to confirm that none of the hemp or hemp-derived products you sell have therapeutic or medical benefits. If the FDA has previously approved these products, you don’t need to do this.
The next step is to disable all SMS notifications on Shopify. As of right now, notifications for CBD products can only be delivered via email. You are also not permitted to use Shopify Payments for payment processing.
Luckily, Shopify has partnered with integrated third-party gateways. One of them is Bankful.
Bankful is a CBD payment expert who closely follows the industry’s progress and regulations.
If CBD companies are looking to add subscriptions to their business model, Bankful is the best solution. It is the only payment processor that supports recurring billing for all CBD products on the market. Bankful not only offers very low fees, but its integration is also effortless with your Shopify store via Square Payments.
Stay In The Loop
When you are working with high-risk verticals such as CBD, you must adhere to strict regulatory compliance. Understand that Shopify must also “cover themselves” on the legal side. Your best bet is to keep up with both federal and state CBD laws.