CBD Dropshipping

How to Start CBD Dropshipping

CBD dropshipping is a rapidly growing industry—the North American hemp-derived cannabidiol market size is expected to reach $16.1 billion by 2027.

As the market continues to grow, more people will become curious, which creates excellent conversion opportunities. You can also count on return buyers and the opportunity for loyal customers, as most CBD consumers use it daily.

A low-weight product, CBD is also cheaper to ship, creating the opportunity for a larger profit.

If you’re looking to enter the industry, here’s how to legally start dropshipping CBD products.

1. Register Your Business

When starting an online business, you must file the necessary legal paperwork and other documents, just as you would for a brick-and-mortar store. This includes:

• Registering your business following your state’s requirements
• Obtaining required permits and licenses, including a resale certificate 
• Applying for state and federal tax ID numbers

These requirements will vary by state, and it’s your responsibility to do your research and satisfy any legal obligations before moving on to the next step. 

2. Choose a Reliable CBD Dropshipping Program

Next, set up a reseller account with a high-quality, trustworthy CBD supplier. Due to the rapidly growing demand for CBD, there seem to be unlimited supplier options, and some are more reliable than others. 

The supplier you choose will affect your products’ quality and legality, as well as how much trust customers will place in your business. 

2. Partner With a CBD-Approved Payment Processor

When a customer places an order, the last thing you want to worry about is whether your payment processor will authorize the payment. 

CBD is classified as a “high-risk” product, which means there are restrictions around how you can accept payments for CBD online. 

For example, Stripe and PayPal are popular payment gateways that do not process payments for CBD sellers. Square, however, has changed its rules and now offers a CBD payment solution.

4. Build Your Online Store

There are also restrictions on where you can sell premium CBD products online—popular marketplaces such as Amazon, eBay, and Etsy currently prohibit CBD sales. Building your own store is your best option for success. 

Ensure the platform you choose offers specialized solutions for CBD resellers, such as CBD-approved payment gateways and industry-specific shipping options.

Take some of the guesswork out of the process by purchasing a Turn-Key Shopify store from US Direct preloaded with high-quality products from verified CBD suppliers.

And once you’ve done all of the above, make sure you’re syncing inventory availability, order management, and more with a reliable dropship automation platform.

Looking for more information? Check out our complete guide to selling CBD online.