Dropshipping

7 min read

13 Jan 2025

CBD Dropshipping: A Complete Guide

Did you know the global CBD market is projected to hit $6.9 billion by 2025?

Yes, you read that right. CBD sales are growing at lightning speed. That's why it's one of the fastest-growing industries globally.

And if you want to get your piece of the pie without the stress of managing inventory or shipping logistics... Try CBD dropshipping!

But most people only talk about the profits and the hype without addressing the nitty-gritty details.

Well, this guide is different.

So, let’s explore everything you need to know about CBD dropshipping, including the untold details most websites won’t cover.

What Is CBD Dropshipping?
CBD Laws and Regulations
Pros of CBD Dropshipping
Cons of CBD Dropshipping
How to Start a CBD Dropshipping Business
CBD Dropshipping FAQs

What Is CBD Dropshipping?

CBD dropshipping is a simple concept. You sell CBD products online, but instead of stocking inventory, your supplier handles everything—from storage to shipping.

Here’s how it works:

You partner with CBD suppliers.
They provide products like oils, gummies, or creams.
You list these products in your online store.
When a customer orders, the supplier ships the product directly to them.

This setup allows you to start dropshipping with no money upfront for inventory, making it a low-risk business model.

This also allows you to focus on creating a great shopping experience, building trust with your audience, and marketing your store.

CBD Laws and Regulations

CBD is derived from hemp, a cannabis plant. Because of this connection, CBD operates under strict regulations. Therefore, it’s crucial to know the legal landscape before starting your business.

Federal Laws

The 2018 Farm Bill legalized hemp-derived CBD with less than 0.3% THC in the United States. Anything above this limit is classified as marijuana, which is illegal federally.

State Laws

Each state has its own rules. For example:

Idaho: Products must be THC-free.
Colorado: No additional restrictions beyond federal law.

Before you list a product, make sure it’s compliant in the states where you’ll sell.

FDA Restrictions

You can’t market CBD as a cure or treatment for health issues without FDA approval.

Age Restrictions

Some states require customers to be 18 or 21 to purchase CBD. To comply, install age-verification tools on your site that prompt users to confirm their age before entering.

Pros of CBD Dropshipping

Why is CBD dropshipping such a popular business model? Let’s break it down:

1. Low Start-Up Costs

You can start dropshipping with no money for inventory. All you need is a functional store, a domain, and partnerships with suppliers.

2. Diverse Product Range

CBD isn’t just for oils. You can sell:

Tinctures
Gummies
Creams and balms
Pet products
Bath bombs

This variety helps you target specific niches, whether it’s wellness seekers or pet owners.

3. Scalable

You’re not limited by inventory space. As your store grows, adding new products is as simple as updating your website.

4. Growing Market

The demand for CBD products is skyrocketing. With the global market expected to reach billions, it’s a lucrative space to tap into.

Cons of CBD Dropshipping

Every opportunity has its challenges. Here are some potential downsides:

1. Regulatory Complexity

Navigating laws can be tricky. What’s legal in one state might not be in another.

2. Payment Processing Issues

Some payment processors, like PayPal and Shopify Payments, don’t facilitate CBD payments. To process CBD payments, you need to add a third-party payment processor like DigiPay and Bankful.

3. Higher Competition

Because the CBD market is booming, the competition is tight. So, if you want to stand out, you need to invest in excellent branding and marketing.

4. Shipping Restrictions

Some carriers refuse to ship CBD products. Research your options carefully before choosing a shipping partner.

5. Limited Advertising Options

Advertising platforms like Google and Meta limit how you can promote CBD products. You may need to get creative with content marketing and influencer partnerships.

How to Start a CBD Dropshipping Business

Starting a CBD dropshipping store isn’t as complicated as it sounds. Follow these steps:

1. Research the Market

Know who you’re selling to. Wellness seekers might want CBD oils, while pet owners might prefer CBD treats. Tools like Google Trends or keyword research platforms can help you pinpoint demand.

2. Register Your Business

Since CBD is a regulated product, registering your business is essential. Here’s how:

Register your entity based on state requirements.
Obtain resale permits and tax IDs.
Ensure compliance with local laws.

3. Find Reliable Suppliers

Partnering with high-quality suppliers is key. Look for:

Certificates of Analysis (COAs): Ensure products are lab-tested and safe.
Fast shipping: Customers expect quick delivery.
Variety: Offer a range of products to meet different needs.

Some trusted CBD dropshipping direct sources include:

Absolute Nature CBD: Known for transparency and lab-tested products.
Charlotte’s Web: Offers oils, topicals, and gummies.
Joy Organics: Renowned for high-quality, organic CBD

4. Set Up Your Online Store

Start dropshipping with Shopify to simplify your process. Shopify offers:

Easy store setup with CBD-friendly themes.
Apps for age verification and payment processors.
SEO tools to help your store rank.

5. Add Products

Populate your store with detailed listings. Include:

High-quality product images
Transparent descriptions
Customer reviews

6. Set Up Payment Processing

Use CBD-friendly payment processors like:

DigiPay
Square
Bankful

Avoid traditional gateways like PayPal, which block CBD transactions.

7. Market Your Store

Get your brand in front of the right audience with:

Content Marketing: Write blog posts targeting CBD-related queries.
Influencer Marketing: Partner with credible influencers.
Email Campaigns: Build customer loyalty with exclusive offers and updates.

CBD Dropshipping FAQs

1. Is CBD Dropshipping Legal?

Yes, but it depends on federal and state laws. Hemp-derived CBD with less than 0.3% THC is generally allowed. Always verify the regulations in your sales area.

2. How profitable Is CBD Dropshipping?

CBD dropshipping can be highly profitable. The global market growth and recurring purchases make it a sustainable business.

3. What are the best products for CBD dropshipping?

Oils, gummies, topicals, and pet treats are customer favorites. They’re lightweight, easy to ship, and have a wide audience appeal.

4. Do You Need a License to Dropship CBD?

While no federal license is needed, you may need a business license depending on your state

Your CBD Dropshipping Journey Starts Here

CBD dropshipping is your ticket to tapping into a booming industry with minimal investment.

Remember, if you want to build a successful dropshipping store:

Partner with reliable CBD dropshipping sources
Stay compliant with regulations, and
Focus on customer trust

The CBD industry is growing fast—are you ready to grow with it?

Author

Rhea Diamante

Rhea Diamante is a copywriter at Debutify, where she crafts compelling and engaging content. With a knack for storytelling and a keen eye for detail, she ensures every piece she writes resonates with the audience and drives results.

Dropshipping

7 min read