Selling CBD Products Online: A Complete Guide

Introduction

The Cannabidiol (otherwise referred to as CBD) sector has been very quickly expanding and developing over recent years. There are several CBD items, including supplements, drinks, skincare, pet products, etc., so naturally, and it‘s also a hit product among ecommerce retailers.

Despite its popularity, venturing into selling CBD products online involves dealing with a complex business environment characterized by complicated legal and marketing challenges.

Before you begin your CBD business online, you should be aware of what to expect and how to adequately prepare yourself. The use of CBD has increased among Millennials (31% of CBD users). 

Additional states are broadening their definitions of what constitutes legal THC (the compound most directly responsible for the effects of marijuana on an individual’s mental state) to include higher levels.

The CBD marketing sector is experiencing significant growth, driven by influencers, affiliates, and community-based marketing efforts. Numerous well-known brands are entering into the CBD market.

To capitalize on this worldwide phenomenon, you must learn how to legally and effectively market and sell your CBD products online.

There is strong competition, after all, and as more and more people turn to cannabis as a cure for ordinary diseases, ailments, and medical issues, you must be out in front in the lead.

Selling CBD online is probably the easiest way to sell the popular product (remember CBD is prohibited in several 50 states), which can be reformulated into a variety of products like:

1. Oils

2. Supplements

3. Sprays

4. Topical balms

5. Capsules

Establishing an online CBD store set up requires the careful selection of an appropriate e-commerce platform, obtaining compliant payment processing solutions, optimizing for search engine visibility, and ensuring dependable product sourcing and shipping logistics.

In this blog we have tried to cover the major challenges faced by any CBD merchant for launching and establishing a successful online brand.

Also Read: Can you Sell CBD on Tik Tok

What Are the Regulations for Online Sales of CBD?

The Farm Bill of 2018 legalized hemp at the federal level enabling companies to sell CBD products that have 0.3% or less of THC. As a result of its federal legality, CBD sourced from hemp can be sold online and shipped across state borders.

Although there is no federal license requirement to sell CBD, it is important to remember that some state and local governments may have such requirements. Licensing requirements for hemp growers, processors, and manufacturers have been created by some states.

Though there is no universal license for selling CBD, few states and local governments might need to acquire such requirements. We advise you to be aware of all legal requirements, including state and local laws. Keep yourself informed about any modifications in FDA regulations and state laws so that your online CBD business does not become non-compliant.

Till date the FDA has approved only one medication that has CBD which is Epidiolex. This is the sole CBD product permitted to make health-related claims. Consequently, your marketing strategy cannot focus on the health benefits of your CBD offerings.

Also Read: Marketing ideas for CBD Business 

How to start an online CBD business in 2025?

If you are interested in exploring the rapidly expanding CBD sales market, here are nine essential steps to launch an online CBD business:

1. Select your specific CBD niche and product offerings.
2. Understand the laws and regulations surrounding CBD business.
3. Develop a detailed business plan.
4. Ensure all necessary business documentation is prepared.
5. Find a reliable CBD supplier.
6. Choose the most suitable e-commerce platform.
7. Build your website.
8. Set up shipping and payment options.
9. Market your business effectively.

Also Read: How to Market Your CBD Business on Facebook

Starting your online CBD business involves the following steps:

1. Determine Your CBD Market and Products:

A look at the (virtual) shelves of most health food stores will confirm that you can now purchase CBD anything. Creams and ointments, human and animal chewies, hemp clothing and accessories — with strong demand, businessmen will attempt to seize the opportunity.

When assessing the overall market opportunities in general, begin by researching the broad niches first.

Below are the most trending ones:

• CBD-infused food/drink.
• Supplements/health wellness.
• CBD cosmetic products.
• CBD pet products.

Additionally, it is essential to delve deeper into your product categories. The majority of these categories differ based on the method of CBD consumption.

1.Sprays and drops: The primary component of both is CBD oil, which has been decarboxylated from hemp/hemp flowers and blended with a carrier oil. Sprays and drops may also contain flavoring substances and other chemicals that render them more acceptable to take.

2.Capsules and pills: Encasing a dose of cannabinoid in gelatin or soft gel capsule makes it easier to digest. Also, because most people consume CBD as a substitute for over-the-counter medication, this type might feel more familiar and therefore appealing.

3.Tinctures: Similar to medicinal tinctures, CBD-based ones are prepared by mixing cannabinoids with alcohol or another concentrated solvent. At times, CBD tinctures also include additional herbs. 

4.Topicals and patches: Topicals and patches are considered to be best suited for targeted use like joint, back or menstrual pain, topical creams and CBD patches are a favorite among consumers who do not enjoy the hemp taste or otherwise prefer topical applications.

5. CBD edibles: With gummies, candy, chocolate, honey sticks, there are many munchable CBD products to choose from. Most of them tame hemp‘s ‘medicinal’ feel and turn it into a wellness treat.

Also Read: Guide to Start a CBD Business

2. Get Acquainted with the Laws and Regulations Surrounding CBD:

The legality of selling CBD is a large aspect of CBD marketing, and not following the rules — whether state laws and regulations or federal laws and regulations — would mean huge repercussions.

Scheduling the cannabis plant as a Schedule I narcotic has hindered development in the legal department. FDA regulations are a concern to CBD sellers, and if you’re interested in starting CBD selling online, you may be wondering how you can market and advertise.

Let us clarify some queries that may be on your mind:

Is CBD Now Legally Recognized?

The response to this inquiry differs on the basis of your state of residence, your plans to market CBD products online sourced from either marijuana or hemp, and the particular categories of products you intend to provide.

Hemp-derived CBD products are only those which can be sold online.

The enactment of the 2018 Farm Bill did not affect or modify the FDA’s right to regulate food, drug, cosmetic, device, pet food and dietary supplement products.

States revised their state drug law by deleting hemp from their state-controlled substances act as they embraced the FDA’s stance on the sale of some hemp-derived CBD products.

Some states ban the sale and use of CBD. Other states restrict the types of CBD products one can sell within the state or demand a specific license.

In case you are selling or want to sell CBD products online, you will need to have systems in place so that you can be completely compliant with every state’s laws regarding CBD. Adding shipping restrictions on the basis of your products in store will ensure you remain within designated safe shipping zones.

What Regulations Am I Required to Follow?

The Farm Bill, enacted late in 2018, legalized the commercial growing of hemp throughout the United States. As a result, people are allowed to grow industrial hemp as long as they get the proper licenses from their state or the USDA, and they can sell hemp-derived CBD products according to state laws and regulations.

However, there are certain restrictions:

The hemp which you are growing to produce CBD must not be more than 0.3% THC level. Any hemp with a greater concentration of THC is a marijuana plant, and more stringent guidelines apply. Some states further restrict THC levels to 0.0%.

CBD derived from marijuana plants is legal in 15 states for the recreational use of cannabis and in 36 states for medicinal use when grown and sold through legalized marijuana markets.

1. Marketing federally: Though hemp-based products containing not more than 0.3% THC are no longer controlled substances, adding CBD to foods or as dietary supplements is prohibited by the FDA. Enforcement has, however, been avoided as long as no drug or health claims are made for the products.
2. Selling statewide: State regulations vary. Some states permit the sale of all CBD products, but others restrict the kinds of products that can be sold legally. Some states outlaw CBD products with any level of THC, even if it is less than the federally permitted amount of 0.3%. 

There can also be labeling and testing requirements, as well as retailer licensing requirements and product registration requirements. Cross-check with a local legal expert, if possible, to see whether there are restrictions or requirements in selling CBD products in each of the states where you intend to sell.

Also Read: How to Advertise Your CBD Brand in the Best Possible Manner 

3. Develop a Well-Researched CBD Business Plan:

Starting a business without a thorough business plan is like driving without a rearview mirror — you can do it, but you might miss a roadblock coming your way.

Here’s what to include in your business plan for ecommerce CBD operations:

• Begin with market analysis:

A market analysis is designed to provide you with enough information about your industry size, customers, competitors and other market variables so you can make better decisions about your product positioning, pricing and overall go-to-market approach.

• CBD regulations and compliance plan: 

State and federal law and regulations for CBD products are changing rapidly. There needs to be a plan that will allow your company to keep up with the latest regulatory news and in accordance with applicable regulations and laws.

• Select your brand name and substantiate product range: 

Explain how your brand name and other brand assets differentiate you from competitors — precisely which CBD niche you will target and why. Briefly delineate your range of products, highlighting the quality of the products and competitive factors.

• Establish your financing: 

Approximate how much cash you will require to start your operations. Split them into one-time pre-launch expenses (e.g., commerce site creation, inventory acquisition, product design/branding) and recurring monthly expenses ( e.g., inventory replenishment, handling/packaging, shipping, marketing, taxes, etc.).

Always include additional padding for ‘unplanned’ costs because they will occur. Then research how much time and how many sales you’ll have to make to break even each month.

If you are looking to raise money in the future, have figures outlining your expected costs vs. revenues. You also need to define targets for CPA (cost per acquisition), AOV(Average order value), sales conversion rates, customer retention rate, customer lifetime value (CLV).

• CBD marketing strategies: 

A marketing plan details your strategy for growing awareness around your CBD brand, acquiring new customers and fostering repeat purchases. It’s a cornerstone document that should be a) data-backed, b) realistic c) channel-specific. Yes, writing a solid marketing plan will take a ton of time and research. But this early investment pays off in terms of reduced budget waster and better marketing results later down the road.

Also Read: How to Create an Effective CBD Business Plan

4. Get Your Business Documents in Order:

In order to sell CBD online, you must procure a few different licenses:

• A standard business license: Incorporate and register a company with your state in order to begin business operations. Be certain to order an EIN/TIN for the newly formed corporation from the IRS.
• Reseller license: If you are purchasing CBD in bulk from wholesalers, you may also need to get a Reseller’s license (certificate) from your state. This is an important document that allows you to buy products in bulk without paying sales tax.

CBD distributor license, retailer license and/or product registration: Some states have a requirement that CBD retailers get a CBD or hemp product license prior to selling CBD products to consumers in the state. Individual CBD products must also be registered or approved by regulators in some states. These registrations and licenses will be mandatory even if you are selling products online directly to consumers without a physical presence in the state.

Also Read: How Much Money is Needed to Start a CBD Business

5. Find Your CBD Supplier:

Perhaps the most important step of your ecommerce business is identifying a good CBD supplier. There are some reasons for that.

First, you should make sure that you are selling CBD from hemp plants, not marijuana ones. The latter has a higher dosage of THC, so they become legal only in a few states when grown and sold in regulated marijuana markets.

Federal and state regulations mandate that hemp produced in the United States be subjected to THC concentration testing.

Ensure that any potential supplier you work with will be able to supply an independent third-party certificate of analysis (COA) per batch of hemp, hemp-derived ingredients, or a finished product indicating a THC level not greater than 0.3%.

Credible wholesalers will do in-house lab testing and will be able to give a COA with the THC content of a product and evidence that the product does not contain contaminants.

This is relevant since many states have laws that the product must be tested for contaminants as well as THC concentration. Failing to produce a detailed COA is a big red flag.

Secondly, the quality of your product will reflect on customer satisfaction and your CBD brand reputation. After all, 24% of CBD users identified the strength of the product to produce the “desired effect” as their top purchase motivator.

Having the ability to offer a precise certificate of analysis for every product sold will grow consumer trust in your brand. Other purchasing priorities are ingredients quality, price, consumption method and concentration (e.g., oil, edible, vape).

Keeping in mind that CBD manufacturing is still under regulated, some items on the shelf might not contain the CBD concentration claimed — some might even have none at all.

As a fresh CBD company, you do not want to end up on the fake side. Again, this is yet another reason you ought to do proper due diligence in evaluating various CBD manufacturers. Besides asking for or conducting independent product testing, also consider a potential wholesaler by the following standards:

-Method of hemp sourcing and origin.

-Licensing and certification requirements.

-Employment of up-to-date Good Manufacturing Practices (cGMP)

-Method of extraction.

-Customer reviews from fellow entrepreneurs.

-Pricing.

-Additional services (e.g., labeling, drop shipping CBD products).

Also Read: How Much Does Average CBD Store Make 

6. Find the Ideal Ecommerce Platform:

In addition to sourcing a reliable CBD supplier, you’ll also need to find the (best) ecommerce platform for your business. Like quality products, your technology infrastructure will directly impact your customers’ satisfaction with your brand.

That said, not all ecommerce platforms permit opening an online CBD store set up because of CBD’s legal status. Nevertheless, you have some great choices.

• BigCommerce:

BigCommerce hands down has the best solution for selling CBD products online. Their platform, in combination with our FDA compliance solutions for regulated products, has been a success for dozens of Vaping sites and has, subsequently, drawn in many CBD companies to the platform. Plainly speaking, BigCommerce is light years ahead of other platforms in terms of getting you ready with everything you need to sell CBD online.”

BigCommerce provides a wealth of B2B and B2C ecommerce functionalities to CBD retailers, wholesalers and makers. With drag-and-drop page builders, unlimited customization options, 0% transaction fees, and 99.9% uptime, we give international CBD companies an all-in-one ecommerce solution they need to quickly begin their operations and grow— without limitation.

BigCommerce platform provides CBD marketers with the ability to make returns easy while selling their products, which can be promoted on many websites.

• Shopify: 

If you qualify, you get to have a good range of core commerce features for getting your digital business up and running, such as design templates, shipping integration, marketing tools and payment processing.

The Shopify Payment method, which is proprietary, is not allowed for CBD products, so you will have to be approved by a third-party payment processor.

Also Read: Best Ecommerce Platform for CBD

7. Build Your Website:

With an ecommerce platform as opposed to open-source ecommerce tools or custom development, you cut down the timeline of website building.

Having hosting, infrastructure, etc., taken care of by the solution provider, you then only need to concentrate on your store design and add products to get your CBD operations up and running.

• Personalize your design:

Did you ever paint by numbers? Designing on contemporary ecommerce sites is rather like that. Rather than beginning with a clean page, you’ve got an existing website theme — your collection of pointers, pre-mapping the ultimate appearance of your store.

You can still get creative, though, swapping colors, layouts, fonts and other visible items or introducing new things to your web store.

• Highlights product information: 

The majority of your clients will need to see the important product details: dosage/strength, hemp source, and extraction process. Ensure all of this data is listed in an easy-to-consume format for every category of product and do not make any health or drug-related claims on your products. 

• Mind the navigation:

Because CBD remains a relatively fresh niche, count on seeing some newbies approaching it for the first time. These individuals require some additional shepherding compared to repeat buyers. Craft your on-site navigation to support their customer journey. Establish descriptive categories and subcategories of products based on consumption techniques and cannabinoid content. Make additions and fill in descriptions.

As far as CBD advertising, FDA doesn’t permit companies to imply that any of their CBD products have the ability to “diagnose,” “cure,” “treat” or “prevent” any disease. Don’t go making any exaggerated claims, even if it’s tempting. Be aware also that customer reviews mentioning any drug or medical statements regarding your product are prohibited too. Be sure to monitor any reviews and take down those making improper claims.

Shoot and upload product images.

Ecommerce images perform two significant roles:

As an extension of your brand.

They assist in swaying customers’ buying decisions.

For instance, 90% of customers on Etsy stated that product photo quality is a buying trigger. If you can afford it, invest in a professional photographer who will take a set of product-only and lifestyle photos for your brand. It is also possible for those who are tight on money to take great ecommerce photos on a tight budget.

Also Read: How to Expand your CBD Business to New Market

8. Set your CBD Shipping and Logistics, and Payment Terms:

Once you’ve laid out your store and arranged your product catalog, it’s time to figure out how your products will get to their new owners.

Set your shipping policy.

Shipping matters to ecommerce customers — you don’t want to disappoint them in that regard. To calculate the best shipping policy for your CBD company, ask yourself the following questions:

What constitutes my ‘free shipping’ threshold? A significant 79% of consumers in the United States consider “free shipping” a compelling reason to increase their online shopping activities. However, do customers express dissatisfaction when this incentive is absent?

The answer is generally affirmative; over one-third of shoppers feel disappointed if free shipping is not available for orders exceeding £135 ($150). It is advisable to establish a sensible threshold for your business that aligns with the anticipated average order value.

Will you charge a variable fee? Weight-based or destination-based shipping charges can save a smaller retailer money on logistics. But they can also alienate some customers: 50% of abandonments occur when shipping/tax charges are too expensive.

The solution? Offer estimated shipping charges or a delivery calculator option before check out if you do charge variable fees.

Which logistics carrier is best? Not all carriers have clear-cut policies about CBD shipments.

Research thoroughly. For instance, although UPS does permit shipping hemp and CBD-based products, they also declare that they “reserve the right to dispose of any shipment containing Marijuana, Hemp or Hemp products tendered for shipment which Shippers are prohibited from shipping, which UPS is not authorized to accept, which UPS states that it will not accept, or which UPS has a right to refuse.” That does not sound all that comforting.

Are there legalities about shipping hemp/CBD-products over state lines that you should be aware of? Shipping CBD oil over state lines is legal if it is hemp, not marijuana, and has no more than 0.3% THC.

There are a few states, however, where the percentage of THC is even less than that. Research each individual state’s laws before shipping across state lines. Carriers also have their own product type and paperwork requirements.

Choose an ecommerce shipping solution.

Your second step is to choose supporting shipping and fulfillment software — a piece of software that will assist you in setting shipping rates, handling logistics, printing labels and auto-dispatching notifications to customers.

To reduce hassle and error, your app must seamlessly integrate into your ecommerce website. You can find various shipping and fulfillment apps on the Big Commerce marketplace.

Don’t forget to verify if your pick also integrates with the carrier you intend to use.

Use a payment processor that supports CBD.

The CBD market is considered “high risk” because of the existing regulatory mess. Accordingly, most payment processors prefer to exclude CBD merchants in order to reduce their operational risks.

Nonetheless, you are not out of luck. In order to accept payments from clients, you can make use of a specialized payment processor who is familiar with processing high-risk businesses.

Also Read: How to Start a CBD Dispensary in California

9.CBD marketing strategies:

When you get up and running, you’ll need to turn your attention toward customer acquisition. Just because the CBD space is currently trendy does not mean that consumers will find their way to you automatically without putting yourself in place with a solid marketing infrastructure.

• Concentrate on content:

CBD products remain widely misunderstood, frequently because of unscrupulous marketing by other companies or false medical assertions by self-styled gurus. Establish your first customer base by seeding correct content.

Host industry professionals to provide more in-depth content than the competition. Invest in both blog and social media, as most younger consumers tend to look to both for inspiration on products as well as details.

• CBD SEO best practices:

Publishing well-researched content is key to dominating the search engine results. Especially with the latest Google update called ‘passage indexing.’ By honing its AI algorithms, Google now indexes individual passages from a web page (rather than just the entire page) to help users.

This SEO change is an excellent means for CBD businesses to attract top-of-funnel customers and turn them into leads through information that informs.  Since SEO competition when it comes to CBD-related topics is quite vigorous, targeting longer-tail less-searched topics can assist in creating the primary traffic while establishing further optimizations.

• Collaborate with influencers:

A lot of CBD’s popularity today is directly because of patients’ advocacy. First-hand experiences of individuals, who were aided by CBD to deal with chronic pain and seizures, initially generated the mass appeal of the plant for therapeutic as well as wellness purposes.

Celebrities and public figures are today vocal supporters of the CBD — some of them have even opened their CBD businesses. Just make sure you collaborate with individuals who believe in your brand values and can talk about CBD confidently. Also, ensure no health or drug claims are made regarding your products and don’t forget about required FTS disclosures.

Also Read: CBD Business Ideas to Start

10. Maintaining Customer Trust:

Customer trust when marketing CBD products online is built on transparency, quality, and safe transactions. Post third-party test reports to confirm product purity and concentration, list ingredients clearly, and provide proper dosing information. Utilize safe, CBD-accepting payment methods and store customer data safely. Offer helpful customer service, transparent refund practices, and genuine reviews to establish credibility. Inform your customer through precise product information and remain compliant with state and federal law to gain long-term customer loyalty.

Conclusion

Online CBD sales can be extremely profitable, as long as you strategize well, follow the rules, and market well. With an understanding of your legal landscape, selecting high-quality products, building a compliant online store, and using successful marketing strategies, you can successfully build and develop a CBD business in this new industry.

The online sale of CBD products offers significant potential, but it requires meticulous planning. It is essential to research upon the various legal compatible CBD products and also to depend upon the payment processing platforms that support the high-risk business. Starting your own CBD website , implementing correct CBD website design and regularly uploading content highlighting the products, positive testimonials, videos, and even more helps to establish brand awareness and visibility.

Achieving success for CBD products online is a hurricane task, and needs regularly updated about the legal compliances and state licenses for achieving the objectives. If you are trying to set up your online CBD store and are still confused about any processes, then feel free to reach us on CBD merchant solutions expertise for any assistance.