How to Start a CBD Dropshipping Store Quickly?

The global market for CBD (cannabidiol) products is projected to reach $6.90 billion in revenue by 2024, driven by rapidly growing demand. Meanwhile, the United States is leading the way in innovation and market expansion, making it an ideal time to start a dropshipping store focused on CBD products, as the industry continues to gain popularity.

By leveraging the benefits of dropshipping, you can offer a wide range of CBD products without the need for inventory, allowing you to focus on building and growing your brand. In this guide, we’ll walk you through the essential steps to launch a successful CBD dropshipping business.

What is CBD dropshipping?

CBD dropshipping is selling products containing hemp-derived cannabidiol. Unlike traditional CBD sellers or producers, a dropshipping business doesn’t require you to keep inventory. Instead, you partner with third-party suppliers who handle sourcing, storing, packaging, and shipping products when orders come in.

As a CBD dropshipper, you need to set up and manage an online store, listing products from one or more suppliers. You’re in charge of building the store, branding it, marketing, and making sure customers receive their orders and have a good experience.

You can easily start and manage a CBD dropshipping store using Shopify, which lets you connect with suppliers and handle orders all from one platform. Learning to dropship with Shopify is straightforward and easy to begin.

CBD laws and regulations

Although most CBD products don’t contain Tetrahydrocannabinol - THC (a substance that can cause negative effect on users), they are still derived from cannabis plants. Because of this, dropshipping CBD operates within a highly regulated market, making compliance with strict rules essential.

CBD dropshippers must keep up with the latest state and federal laws about selling CBD, as well as the rules of any ecommerce tools and platforms they use.

Laws for selling hemp-based products can differ from state to state, country to country, and between platforms. Here’s a basic overview of what you need to know about dropshipping CBD in the US and selling hemp-derived products on Shopify.

CBD rules in the US

Federal laws

In 2018, the federal Farm Bill was passed, removing hemp products with low levels of intoxicating cannabis compounds off the government’s controlled substances list. This means that hemp plants and products with less than 0.3% THC can be legally grown, bought, sold, and transported across the US without needing state-specific permissions.

However, even though hemp and CBD are legal at the federal level, there are still rules about how they can be marketed. Since non-prescription cannabis products are not approved by the FDA, sellers, including dropshippers, are not allowed to claim that their CBD products can be used for medical or therapeutic purposes.

State laws

While most states permit the sale and use of CBD products, the specific regulations can vary. The rules often depend on the amount of THC in the products and whether they are derived from marijuana or hemp.

For instance, states like Arizona and Colorado have no extra restrictions on CBD products. But in Idaho, the laws are stricter; products must be made from certain parts of the hemp plant and cannot contain any THC at all.

When you choose CBD products to sell in your dropshipping store, it’s important to know whether the product is made from hemp or marijuana and to understand its THC content. Some products might be THC-free, contain less than 0.3% THC, or have higher, psychoactive levels of THC. The amount of THC will often determine whether you can legally sell the product from your location and ship it to customers in other states.

Age limits

Even though most CBD products only contain trace amounts of THC, some states have laws that prevent people under the age of 18 or 21 from purchasing them. If you’re selling CBD products in those states, you need to ensure that your customers meet the age requirements.

Hulk Age Verification

Selling CBD on Shopify

If you want to dropship CBD products through a Shopify store, there are some important rules to follow. First, selling CBD must be legal in both your store’s location and the places where you’re shipping orders. In the US, the CBD products you sell must come from hemp plants.

Shopify has specific guidelines for selling hemp products in the US and in Canada. These guidelines include the following requirements:

• Products must be made and labeled according to all federal, state, and local laws.
• Products cannot be marketed as offering medical or therapeutic benefits unless they have FDA approval.

If you’re selling CBD or cannabis products to or from other regions, you need to follow the local laws and adhere to Shopify’s hemp policies as well.

Payment options for CBD products

Although you can set up a CBD dropshipping store on Shopify, you cannot use Shopify Payments to process sales of CBD or THC products. Instead, you’ll need to use a third-party payment processor like DigiPay or Bankful. It’s essential to understand all your payment processing options when selling hemp, CBD, or THC products on Shopify.

Hemp product notifications

Another limitation of Shopify for selling hemp products is that SMS notifications are not available. This means that order and shipping notifications can only be sent to your customers via email.

Starting with CBD dropshipping

From picking the right supplier to setting up your online store, here’s a simple guide to help you get started with your CBD dropshipping business.

1. Find a CBD supplier

Choosing the right supplier is key to making your dropshipping business successful. One of the best things about CBD dropshipping is the ability to source high-quality products from a wide range of suppliers, rather than just sticking to convenient but lower-quality products due to wholesale ties.

When selecting a supplier, consider the quality of their products, their stock availability, and how quickly they can ship orders. To ensure these factors meet your standards, you should order samples, possibly under different names, to test the supplier’s reliability.

Working with multiple suppliers can also be beneficial, as it allows you to offer a variety of CBD products like tinctures, gummies, and creams from different brands. This diversity can help you meet different customer needs and carve out niches within the CBD market.

Read more: How to Find Shopify Stores in Your Niche: 13 Ways to Apply

Supplier lab tests

To check the quality of a supplier’s products, follow these steps:

• Request Lab Reports: Lab reports are essential for verifying product quality and are standard practice for both sellers and buyers.
• Look for Certificates of Analysis (COA): Choose suppliers who provide current COAs from third-party labs.
• Check the COA Details:
  • CBD and THC Levels: Ensure the report shows the amounts of CBD and THC in the products.
  • Other Compounds: Verify the presence of other cannabis compounds.
  • Safety: Confirm that the products are free from harmful substances like pesticides or heavy metals.

You can consider starting your search with these options:

• SmokeDrop
• Charlotte’s Web
• Tiger One
• Absolute Nature CBD

Platforms like Shopify offer easy-to-use themes that you can quickly add to your store without needing to code. Shopify even has themes designed for health and beauty that can give your CBD dropshipping store a professional look.

To enhance your store’s visual appeal and build trust with customers, consider integrating an Instagram feed app. This will allow you to showcase real-time images of your products in use, connecting directly with your audience. If you’re using Shopify, remember to add a different payment processor, as Shopify Payments doesn’t support CBD sales.

3. Add CBD products to your store

After setting up your store, begin adding products from your supplier. The CBD market is always changing, with new products and brands emerging. Typical CBD product lines might include:

• Supplements, capsules, and pills
• Oil tinctures
• CBD flowers
• CBD products for pets
• CBD oils for vaping
• CBD gummies and edibles
• Creams, lotions, and topicals
• Bath bombs
• Lubricants
• Sprays and atomizers

Holland & Barrett

Be sure to include clear, high-quality images and detailed descriptions for each product. To help boost sales, use strategies like displaying customer reviews, as many buyers read reviews before purchasing online.

Adding other trust signals, like money-back guarantees, third-party certifications, and clear, detailed product descriptions, will help your store become a trusted place for shoppers.

4. Market your products

To attract customers, you need to use effective marketing strategies. Here’s how:

• Content Marketing: Create content that targets specific searches related to CBD products. Identify the keywords your potential customers are searching for and make high-quality content that answers their questions.

• Email Marketing: Use email marketing to build relationships with potential customers. Offer incentives like coupon codes or exclusive content to encourage visitors to join your email list. This way, you can stay in touch with them even if they haven’t bought anything yet.

• Influencer Marketing: Partner with influencers to boost your brand’s credibility and reach. Many people trust influencers more than direct brand information.

• Paid Ads: Use paid advertising on platforms like Meta and Google. Be aware that some ad platforms have rules about how you can advertise hemp-derived products, so you might need to adjust your ads to fit their guidelines.

CBD dropshipping: Tips for success

Here are some key tips to follow when starting and running your CBD dropshipping business:

• Stay Compliant: Keep up with the latest CBD laws and regulations in your sales areas. Following these rules helps you build trust with your customers and avoid legal problems.

• Choose Quality Suppliers: Partner with suppliers who offer high-quality products. Since customers associate their experience with your store and brand, working with good suppliers is crucial. Don’t forget to check the amount of THC in products carefully and make sure it’s below 0.3%.

• Optimize Your Website: Make sure your website is easy to use, fast, and works well on mobile devices. A well-organized and attractive site improves customer satisfaction and boosts sales.

• Use Customer Feedback: Regularly seek and listen to feedback from your customers. One advantage of dropshipping is the ability to change your product offerings easily, so use customer feedback to refine your product selection.

• Consider White Labeling: Look into white labeling to give your products a unique brand. White labeling lets you put your brand name on existing CBD products, helping to create a distinct brand identity.

Conclusion

Starting a CBD dropshipping store involves several key steps to set yourself up for success. Begin by finding reliable suppliers who offer high-quality CBD products and meet all legal requirements. Set up your online store with a user-friendly design, high-quality product listings, and effective marketing strategies.

With careful planning, strategic marketing, and a focus on quality, you can build a successful CBD dropshipping business that stands out in the growing market.