Cannabidiol (CBD) products have gained immense popularity over the last few years, with U.S. sales projected at $4.23 billion by 2026. The industry’s expansion, combined with eased regulations, makes CBD dropshipping a profitable venture. Unlike conventional retailing, dropshipping enables entrepreneurs to sell products without having to manage inventory, warehousing, or shipping arrangements. Customer orders are instead redirected to suppliers who complete fulfillment.
If you want to begin a CBD dropshipping operation, this book contains all that you need, including legislation, suppliers, and marketing.
What is CBD Dropshipping?
CBD dropshipping is a business model where retailers sell CBD products made from hemp in an online store without storing inventory. Third-party suppliers package, stock, and send orders directly to customers. Your main role as a dropshipper is to market and run your shop, providing customers with a great shopping experience.
Shopify makes it easy to start and run a CBD dropshipping business with supplier apps, marketing, and order management integrations. Find out how to dropship on Shopify and be up and running in minutes. Learn More
CBD Law and Regulations
Although it is not psychoactive, CBD is a cannabis extract that is subject to strict regulations. Compliance with federal and state regulations is key to success.
Federal Laws
The 2018 Farm Bill made hemp-derived CBD products with less than 0.3% THC legal across the country. The FDA does not allow non-prescription CBD products to be sold as medicinal or therapeutic treatments.
State Laws
Most states permit CBD sales, but the level of THC can be different. Some states, including Colorado and Arizona, have lax regulations, but others, like Idaho, require the CBD to be 0% THC and be derived from particular parts of the hemp plant.
Age Restrictions
In other states, CBD product sales are prohibited for individuals below 18 or 21 years. Use pop-ups for age verification to ensure compliance. This can be easily incorporated through Shopify apps like Hulk Age Verification.
How to Start a CBD Dropshipping Business
Find a Reliable CBD Supplier
Having the right supplier is critical to delivering quality products, on-time inventory supplies, and fast shipping.
Key Points to Consider:
- Product Quality: Opt for suppliers who offer third-party lab reports or a Certificate of Analysis (COA). These guarantee that CBD content and THC adhere to standards.
- Stock Availability: Good suppliers have ongoing stock to prevent back orders.
- Shipping Speed: Quick shipping enhances customer satisfaction and loyalty. Order samples from various suppliers to check their service.
Recommended CBD Dropshipping Suppliers:
Set Up Your Online Store
After you have a supplier, construct your ecommerce store. Shopify boasts a user-friendly platform with pre-made themes, secure hosting, and integrated ecommerce capabilities.
Steps to Construct Your Store:
- Select a Domain Name: Take inspiration from Shopify’s business name generator.
- Select a Theme: Select a clean, professional theme that is appropriate for the CBD niche.
- Add Must-Have Pages: Add a homepage, product catalog, FAQ page, and blog to inform customers.
- Set Up Payment Processing: Shopify Payments is not compatible with CBD sales, so include third-party payment processors such as DigiPay or Bankful. Investigate Shopify’s CBD payment options.
Add CBD Products to Your Store
Insert products from your supplier with quality descriptions and images. Include a variety of:
- CBD oil tinctures
- Gummies and edibles
- Creams and lotions
- CBD pet products
- Bath bombs and topicals
Use customer reviews, COAs, and money-back guarantees to build trust.
Promote Your CBD Dropshipping Website
Traffic and sales have marketing as the prime driving force. Utilize the following strategies:
Content Marketing & SEO
Create informative blog posts and guides for search queries on CBD benefits, use, and legality. Utilize this free keyword research tool to find trending topics.
Email Marketing
Create an email list by providing special offers or informative content. Tools like Klaviyo integrate with Shopify for automated email campaigns.
Influencer Marketing
Partner with CBD influencers for brand exposure. Research indicates that 69% of customers are more likely to trust influencer endorsement over brand messages.
Paid Advertising
Create compliant ads on Google and Meta platforms. Limit messaging to product quality and not health benefits in order to keep ad policies.
Best Practices for CBD Dropshipping
- Stay Compliant: Stay current with constantly changing regulations to remain legal.
- Choose Quality Suppliers: Partner with trusted brands with COAs.
- Optimize Your Site: Ensure it is responsive and has a fast loading time.
- Use Customer Feedback: Update product lines based on reviews.
Consider White Labeling: Redistributing existing CBD products might boost credibility and customer retention.
The Future of CBD Dropshipping
With the change in regulations and the need for more, CBD dropshipping offers a low-risk, attractive business model. Being compliant, having good suppliers, and marketing smartly, you can establish a thriving online CBD business in 2025 and beyond.