How to (Legally) Grow a Cannabis E-Commerce Business
The Cannabis Business Is Growing
2020 General Election update: As we close out 2020, there are some big changes coming down the pike. Ballot measures on marijuana usage passed in five states — Arizona, Mississippi, Montana, New Jersey, and South Dakota. According to a recent Pew Research Center finding, two-thirds of American adults now favor legalization, and as many as 91% are in favor of considering medical usage. Public pushback on these measures is becoming less and less frequent and it's looking as though federal legalization is on the horizon. This is an ideal time to consider how to bring your cannabis or hemp business online and make sure you're aware of the rapidly changing tide of local laws and regulations. Soon, online shipping options may be even more varied.
Times are changing, and one industry that's really feeling those changes right now is the cannabis business. Marijuana legalization is spreading across the nation-state by state. The federal government is now regularly considering legislation that would overturn the federal cannabis ban and allow states to make their own call without interference.
For those in the cannabis industry, things are looking up.
However, as with many controlled substances, there's no ability to sell cannabis online through an e-commerce storefront. Naturally, that puts a damper on anyone's plans to expand into online sales. If your cannabis dispensary can't sell the product that acts as your main source of income, then what can you sell?
We have an answer for that.
Is It Legal to Sell Cannabis Products Online?
If you're in the marijuana business (or CBD business), you need to know the legal stipulations around selling your products.
As of 2020, cannabis is not yet legal at the federal level. Medical cannabis is legal in 33 states, but at the time of this writing, only 11 states have legalized recreational marijuana.
State laws vary from place to place, but as a general rule in legal states, recreational cannabis can be sold in limited amounts through authorized retailers within state lines. They cannot be sold online or shipped.
This essentially means that anything containing marijuana, from vape cartridges to edibles, cannot be sold through an e-shop except for local pickup.
Is It Legal to Sell CBD Products Online?
Cannabidiol, or CBD, is a legal substance by itself and can be found in many non-specialty shops and markets. Thanks to the 2018 Farm Bill, the production of industrial hemp and all its components was legalized federally.
Most importantly, e-sellers should know that CBD products must contain less than 0.3% THC content — under the federally legal limit — to be sold in states that allow them. All products must derive from legally grown industrial hemp, as well.
Good news, though: If your CBD products meet these stipulations and comply with the 2018 Farm Bill, your cannabis dispensary can legally sell them online and ship them to any state where CBD is legal.
A Legally Grown Cannabis E-Commerce Business
Sonoma County business CannaCraft has been killing it lately. In January 2018, the former Dean of Sonoma State University's School of Business and Economics took on the CEO role intending to put Northern California on the map as a hub for cannabis business.
As any good businessperson knows, finding success means coming at a problem from multiple angles. CannaCraft may not be able to sell cannabis products online, but that hasn't stopped them from building a thriving e-commerce storefront.
How? By improvising and being smart.
We had the pleasure of launching a full Shopify store setup for CannaCraft's AbsoluteXtracts ABX brand. The brand itself creates strain-specific cannabis oil vape cartridges, sublingual drops, cannabis strips, and similar products. However, they can only offer pickup and delivery service — these products cannot be shipped outside California.
So what's the Shopify store for? Branded apparel and swag. Genius, right?
Both vape culture and cannabis culture have enormous and passionate cult followings that are rapidly becoming mainstream followings. It's the perfect time to capitalize on that forward momentum by considering a variety of products you can easily sell in an e-commerce storefront.
How Shopify Is Revolutionizing Cannabis E-Commerce
Shopify is an excellent choice for a business owner with their fingers in many pies. It's incredibly intuitive with a fast setup process, and you can use it as a center of operations for distributing on some of the internet's biggest e-commerce hubs.
Launching a storefront is simple, and maintaining it is just as easy with the wealth of tools and apps that Shopify offers. You can:
- Organize a diverse storefront
- Keep an eye on inventory
- Source product
- Dropship
- Print shipping labels on demand
- Maintain a customer email list
- Manage your digital marketing
… and so much more.
Which Cannabis Products Can I Sell Through Shopify?
Shopify allows the sale of hemp products derived from industrial hemp as defined by the 2018 Farm Bill, which specifically means the products must comply with federal, state, and local laws. The following hemp or hemp-derived CBD products are allowed:
- Topical
- Sublingual
- Consumables
In Conclusion, It's High Time to Get Started!
The world really is your oyster when you use the powerhouse Shopify system to expand into e-commerce.
Now's the time to start brainstorming. Do you have a solid brand and want to start selling apparel? Ideas for accessories? Maybe you're even toying with the idea of keychains or vape-cleaning gear. Get creative! If you need a helping hand, hit us up.