The burgeoning CBD market offers a wealth of opportunities for entrepreneurs aiming to carve a niche in this billion-dollar industry. However, CBD retailers face unique obstacles that can make selling CBD online a complicated endeavor.

1) Finding a merchant processor

The initial challenge in establishing a CBD e-commerce business is finding a merchant processor willing to facilitate credit card and debit card transactions for CBD products. A vast majority of mainstream merchant processors refrain from partnering with CBD companies due to the industry’s legal complexities. Fortunately, there are a few merchant processors known to work with CBD companies, and our clients have had positive experiences with the following:

• Herring Bank: Reach out to Andrew Escamilla at 214-382-9140 or [email protected].
• Authorize.net
• Next Stage Payments: Reach out to [email protected]

2) Merchant processor website requirements

Most CBD merchant processors have specific requirements your website must fulfill before approving you to sell CBD products. These usually include an age verification pop-up, an FDA disclaimer, and certificates of analysis (lab reports) for each product. At N4 Studio, our team ensures your website meets these prerequisites, helping you avoid any potential compliance issues.

3) Selling internationally

Given the myriad of international laws governing CBD sales, finding a CBD merchant processor allowing international CBD product sales can be difficult. To prevent potential complications, we configure our clients’ websites to prevent completion of the checkout process by individuals with a shipping address outside of the United States.

4) Avoiding medical claims

Navigating the language surrounding CBD benefits can be challenging. CBD retailers must avoid making any medical or significant health claims about CBD benefits to steer clear of potential legal issues and merchant processor rejection. Our in-house copy editors, with their in-depth knowledge of permitted language, can assist you in crafting compelling copy emphasizing CBD’s wellness benefits without endangering your business.

5) Restrictions on CBD digital advertising

Arguably the most significant challenge CBD startups face is navigating the advertising restrictions of major online platforms such as Facebook, Instagram, Pinterest, and Google, which prohibit ads directly marketing CBD products. However, there are ways to bypass these hurdles:

Educational Content: Restrictions on CBD marketing do not apply to educational content. By shifting from direct sales ads to content educating people about CBD, you can prevent ad rejection by these platforms. Ensure your ads’ landing pages do not feature any CBD products but can redirect to other pages showcasing your products.

Organic Posting: While ads featuring products may be banned, organic posting is permitted. You can post about CBD and your products on your personal or business social media pages, as long as they aren’t promoted as paid ads.

Focusing on Brand Awareness and Engagement: Our most successful CBD clients have prioritized brand awareness and engagement over paid advertising. They leverage their existing contacts and local communities to expand their customer base, using lifestyle branding and physical marketing materials.

Entering the CBD market might seem daunting due to these challenges, but with the right strategies and support, you can navigate these hurdles successfully. Remember, every booming industry has its own set of obstacles, and with the proper approach, these challenges can transform into growth opportunities for your budding CBD business.

Do you want assistance launching your CBD brand? Click here to get in touch with us today!