CBD dropshipping is an excellent way to start a CBD business without holding any inventory. In this article we'll go over how it all works! Some of the best CBD dropshippers are – 1. Smoke Drop 2. Spocket 3. Modalyst 4. Synce 5. Sweet Earth 6. Smoke Drop 7…
CBD Dropshipping 101: Everything You Need To Know
Before we get into CBD dropshipping, let’s talk about CBD. CBD stands for Cannabidiol, and it one of the major active ingredients in Cannabis (aka Marijuana, weed, etc). In Cannabis, the two main ingredients are THC and CBD. THC is what gets you high, while CBD is primarily known for its medicinal properties. Cannabis strains usually come with both compounds, but we have learned how to isolate CBD through specific strains.
CBD is typically farmed and extracted from the leafy form of Cannabis that we would normally recognize. It is then shaped into two main types of products — ingestible and topical CBD.
Ingestible products are items that can be eaten to gain the benefits, such as gummy bears, snacks, or even cooking oil. Topical products are absorbed through the skin and include items like lotions, roll-ons, and even bath bombs.
What Are The Benefits Of CBD?
Let’s preface this by saying that we are not doctors, and this can by no means constitute medical advice. Instead, we will draw on publicly published research to give you an idea of how CBD can benefit its patients.
According to the Harvard Medical School, CBD can be used to:
- Treat seizures and epilepsy in certain cases
- Address and reduce anxiety, and possibly insomnia
- Reduce swelling and inflammation due to arthritis (when applied topically)
There are also several potential side effects such as nausea, fatigue, and irritability. But again, you should always do your own research, as we are simply compiling information.
What Is CBD Dropshipping?
To understand CBD dropshipping you must first understand dropshipping.
Dropshipping is a product fulfillment model whereby one business (the product supplier) makes its products available for sale by third parties (dropshippers). Dropshippers select which products they want to sell, and then market them as their own. When the dropshipper makes a sale, they then place an order with the supplier, and the supplier ships the order directly to the end customer.
The result is that the supplier makes a sale at a price between wholesale and retail without doing any of the legwork. The dropshipper takes the profit margin (retail price minus cost of goods) for finding the buyer. And the customer receives the product that they might not have known about without the dropshipper’s introduction.
Example: John is dropshipping products from his friend’s jewelry shop. When John makes a sale through his website for $100, he sends $60 to his friend (the negotiated price) and pockets the $40. His friend then ships the item directly to the customer.
In essence, dropshipping allows a business to sell products without holding any inventory.
CBD dropshipping is simply dropshipping while selling CBD products.
How Is CBD Dropshipping Different?
Compared to dropshipping regular products, CBD dropshipping can be much more complicated, especially in some regions.
Due to CBD’s medical uses, and its ties to Cannabis (which is still heavily stigmatized), CBD products are subject to a lot more regulations than other items you might dropship.
First off, you’ll need to make sure that you can find a reputable supplier. If you’re going to dropship CBD, you definitely want to make sure that the CBD delivers on its promise. If the products haven’t been made in a way that conforms with regulations, you’ve got a bigger problem on your hands.
Second, you’ll need to double-check the laws of your region and the region you are planning to find customers in. CBD is still illegal in many countries, and in countries like the USA, the laws can even vary state-by-state. You may want to seek out legal advice just to be sure. This will impact your business’s legal structure, your shipping, your advertising, and more.
Third, many service providers won’t work with you if you are selling products they deem to be ‘high risk’. Unfortunately, this still includes CBD in many instances. We’ll get into this more later in the article, but just know that many of the services (payment providers, shipping partners, advertising companies) you would normally use will not be available for your CBD business.
What Do I Need For CBD Dropshipping?
As we mentioned above, many companies are uncomfortable working with CBD businesses. You’ll need to double-check before incorporating any tech companies into your business plan. However, there are enough companies out there that you can get everything built.
At its core, there are 4 parts to a CBD dropshipping business — your website, your payment processor, your supplier(s), and your method of advertising.
- Shopify: You can sell CBD products on a Shopify site provided that you follow the laws of the country and state that you are doing business in. They even have a dedicated CBD landing page if you’re thinking of getting started.
- WordPress: As long as you are using WordPress.org (and not WordPress.com) then you can sell CBD and hemp-based products on your site. However, you will need to find a hosting service that allows for it, as WordPress does not include hosting like Shopify. You will also be restricted from other services offered by the parent company Automattic, like Jet Pack.
- Magento: Magento is similar to WordPress as it allows you to sell CBD on your website as long as it isn’t hosted on their servers.
- BigCommerce: Similar to Shopify, BigCommerce has decided to allow CBD to be sold on its websites, even if the sites are hosted on its servers. They have more information available here.
- Wix: As of now, Wix does allow sellers to sell CBD products on their sites, so long as the business is based in the USA.
- Shopify Payments: Shopify Payments is not an option for stores selling CBD products.
- Stripe: Stripe currently has restrictions in place barring any business that sells products containing THC or CBD.
- Square: Square does allow you to process payments for CBD products, both online and for retailers.
- Paypal: Paypal currently classifies CBD as a ‘high-risk industry’, and is not compatible with it.
- Wix Payments: Wix Payments is not compatible with CBD businesses.
Your payment processor options will ultimately depend on the website platform you choose to go with, and the region you’re in. BigCommerce has a helpful guide for determining which payment processor to select, and it comes with some suggestions.
Whatever you do, just make sure you’re absolutely certain that the payment processor you choose is fine with CBD. There are horror stories of payment providers like Paypal freezing people’s accounts with tens of thousands of dollars for years at a time, or even indefinitely. It’s a nightmare to get that money back, so you’re much better off doing proper research beforehand.
CBD Dropshipping Suppliers
There are few different types of CBD dropshipping suppliers to choose from.
First, there are CBD product manufacturers. These are the companies that produce the final products. They are likely to offer the best rates, but may not have the best selection.
There are a few sites like THCAffiliates and ThomasNet that have compiled lists of some of the bigger manufacturers in the market.
Second, there are platforms similar to DropCommerce that have multiple CBD dropshipping suppliers on them. These platforms can usually be integrated directly with your store through their applications, making the setup process simple. There is naturally more selection, but you will often be buying from a middle-man or private-labeled brand, which can come with lower margins.
BoutiqueSetup has an article going over the top CBD dropshipping suppliers from this category.
Note: DropCommerce does not have any dropshipping suppliers at this time, since one of our partners would deem us to be high-risk.
Third, you can dropship from a branded supplier directly. This would be the organization that usually retails the products themselves. The selection can be great, and you can get whatever margin you are able to negotiate.
For this option, you would just need to search for direct-to-consumer CBD sellers. Just make sure they aren’t already dropshipping from some other supplier!
Advertising CBD Products
- Facebook: Advertisers on Facebook can advertise ingestible hemp (no THC or CBD) or topical CBD products, as long as the ads don’t feature those products specifically. You cannot advertise ingestible CBD products (e.g. gummies), and the website you link to needs to be pretty reputable. However, even if you follow those vague instructions, you may get flagged.
- Instagram: Instagram is owned by Facebook, so most of the same rules apply. If you do something incorrectly, you risk having your ad disapproved, or worse, your ads account shut down. Tread with caution.
- Google: While the nuances around advertising CBD products on Google are more complicated, the short answer is that you can’t. There are some cases where you may be able to, but the risk of Google removing your site from search results is high enough to warrant caution.
- TikTok: TikTok is the newest mainstream social media, and its policies towards CBD products are more liberal than its Facebook-owned counterparts. There does seem to be an opening to companies to advertise (or just create content surrounding) CBD-based products.
You can, of course, find another method of attracting customers that is less reliant on these advertising giants. And this is probably your best bet. The more aspects of the business that are completely within your control, the better.
How To Start CBD Dropshipping
While there are certainly many ways to get started, here is a brief rundown of the concrete steps that you’ll absolutely need to follow to be successful.
#1: Register Your Business Entity
You might be able to get away with not being incorporated while you dropship regular products like clothing (at least at first), but any time you’re dealing with something as controversial as CBD you want to protect yourself. By incorporating your business you’ll make sure that your personal assets and possessions are protected in the event of a lawsuit or legal issue. There’s also a better chance of a supplier taking you seriously.
#2: Partner With A Reliable Supplier (Or Multiple)
The next step is to figure out what you’re going to be selling. Are you going to focus on ingestible or topical CBD? Or are you going to serve both markets? Your decision will play a role in your store’s branding, design, marketing, and more.
When finding a supplier, make sure to test them. Get the product in your hands, place a trial order, and don’t take any shortcuts. The fewer middlemen between you and the manufacturer, the better prices you’ll pay and the more reliable your fulfillment will be.
#3: Set up your store
If you’re building an online store, we recommend using Shopify. Shopify is a platform exclusively built for online stores, and it does a great job. There are over 6000 apps on the Shopify App Store that can give your store features that would normally be way out of your budget.
You’ll also need to set up a payment processor, and your options will vary by region. Just make sure you avoid Stripe, Paypal, and Shopify Payments. Go with Square or another high-risk provider.
#4: Start marketing your business
When your store is ready to start selling, then so are you. This is the part where you need to find customers, without bumping into the restrictions we outlined above. And make sure you have a way of enticing customers to return for 2nd and 3rd purchases since existing customers are much easier to sell to than new ones. This could be an email marketing campaign, retargeting ads, a loyalty program, or whatever you come up with.
Although DropCommerce doesn’t currently have any CBD products, it’s something we are looking at for the future. If you want us to start carrying them, let us know! And if you decide to dropship other products, then DropCommerce is the best place to start.
13 Best CBD Dropshippers in USA & Canada
Are you looking to find the best CBD dropshippers? If yes, then checkout this post.
One of the best ways to stand out in the drop shipping industry is selling products in a unique niche. This will not only cut down your competition but also increase your success rate in the long run.
Currently CBD is the most trending product among dropshipping enthusiasts. This is because of the fact that CBD product sales revenue almost doubled between 2019 to 2021 (Statista).
But for doing it the right way, you’d need a reliable dropshipping supplier. To help you with that, I have hand curated a list of top CBD dropshippers for you.
Things to consider when selecting a CBD dropshipper
CBD industry is one of the hottest products with the highest interest rate in the health niche and that makes it perfect for dropshipping in 2021-22. But there are a few quick things that you’d have to keep in mind for ensuring long term success.
CBD product quality and supplier’s information
First thing to do is check the quality of your CBD products. You can use online reviews and ratings to know about user reviews. Checkout the website of your supplier and even reach them out via phone or email to know about their trustworthiness. The best way to test their products is by placing a sample order for checking out the product. If your location is outside the target market, you can also hire a CBD expert from Upwork or other freelancing platforms to review the quality for you.
Check that CBD is legal
Make sure that you check the laws for selling CBD products. For instance, if you are selling in the USA, check the latest updates on CBD via the FDA website.
Also take a look at your eCommerce platform to check their allowance for selling CBD products. Shopify offers a streamlined process for US merchants.
Shipment and warehousing
If your CBD products are coming from a long distance, chances are that your customers will get a delayed delivery. If you are selling in the USA, then you need to ensure that they have a warehousing location or manufacturing center located domestically.
Type of dropshipping
There are two ways you can do the CBD dropshipping. Ones is to use automated drop shipping platforms like Spocket that helps you with everything from products import to automated fulfillment. Second is manual product upload and order placement every time order arrives.
The automated model is usually available for both wholesale and dropshipping suppliers (provided that you are working with a suppliers connecting platform), but if you are working with a private label CBD supplier, then you have to go with the second option.
Best CBD Dropshippers (Top Dropshipping Suppliers)
Another option on my list of CBD dropshippers is – Smoke Drop. It is a Shopify dropshipping company that integrates as a Shopify app and allows you to sell smoke, vape and CBD products.
If you want to set up an automated dropshipping business then you’d like this one. Being a Shopify app, you can easily select the products that you want to list on your store (they claim to offer 2,000+ products).
Once the order arrives, they will automatically fulfill it for you. Smoke Drop also offers some advanced features like real-time inventory sync, bulk product import and search filtering to make the dropshipping easier for you.
All products are shipped from USA warehouse except from the supplier – One Wholesale that ships from Canada.
The downside is that it only integrates with Shopify, so if you are using any other platform like Wix or WooCommerce then it’s not the best choice for you.
How to sign up (50% subscription discount)
- First you’d have to create a free account on Shopify
- Next add the Shopify app by clicking the button below
- Lastly enter our unique code : BOUTIQUE
- Done! Enjoy your extended 14 days trial (fully-operable)
Spocket is a platform featuring high quality drop shipping products from USA and Europe suppliers. CBD body butter, CBD polish, CBD oil, CBD muscle balm and more. They have two USA based CBD suppliers and are in the process of adding more verified suppliers. What makes Spocket good for CBD dropshipping is the high profit margin (30% to 40% for most products).
They offer automated dropshipping and you can import the products with image, descriptions and details directly to your store by syncing in your eCommerce platform with one click. If you are using Shopify, you’d have to install their Shopify app and then all the products will start appearing on your store, you then just need to hit the publish button.
Similarly for WooCommerce stores, you’d need to install the Spocket WordPress plugin. Another feature in addition to automated dropshipping is the branded invoicing meaning you can include a custom invoice in your dropshipping package with your store logo but its only available in higher tier plans.
Overall, if you are looking for high quality, verified CBD dropshippers, then Spocket is definitely a place to check. Currently, the best Spocket supplier for CBD products is Orchid Strawberry that ships within 1 to 3 days and charges $3.85 for USA shipping and $12 for worldwide shipping.
Average shipment time – 1 to 3 business days
Price – $24.99 per month
3. Headshop Drop
Headshop Drop is a product sourcing service for CBD dropshipping launched by OneWholesale (a Canada based dropship company known for selling smoking supplies).
With 13 years of experience, OneWholesale has recently launched a dedicated service for wholesale and dropshipping.
Headshop Drop offers a unique collection of high quality smoking products with good profit margin. Their warehousing center is located in Canada, but they also ship to the USA.
Currently it only integrates with Shopify. You can use the Shopify app to create a fully automated cbd dropshipping business.
|Shipment: Canada & USA
Average shipment time – 3 to 5 business days
Price – $19 per month (30 days free trial)
Syncee is a fairly new dropshipping platform that features pre-vetted local suppliers from the USA. Unlike Modalyst or Spocket, Syncee gives you an option to categorize as suppliers and as products.
This gives a list of CBD suppliers along with their website (similar to SaleHoo functionality), ratings from retailers and their descriptions. You can do automate CBD dropshipping with Syncee and spend more time on marketing your eCommerce business.
Average shipment time – 3 to 5 days
Price – Free up to 25 products
5. Charlotte’s Web™ (TO BE LAUNCHED)
Charlotte’s Web™ is a brand with tons of unique CBD products. You can sell CBD gummies, capsules, topicals and more.
You’d have to place orders manually through their dropshipping portal everytime an order arrives. For joining their program you’d need to have an online store and an approved CBD merchant processor (through which you’d be accepting payments, DigiPay, for instance).
They haven’t disclosed much information but for joining their dropshipping program you’d have to reach out on dropshipping [at]charlottesweb.com
|NOT LAUNCHED YET|
A great alternative to platform Spocket with a wider product range in CBD niche is Modalyst (an automated dropshipping platform with 4,000+ products including tinctures, gummies, edibles and more).
They have partnered with a lot of verified, good quality independent CBD brands. The best part is they bring together multiple suppliers and retailers in CBD niche under one umbrella, this means you can benefit from other’s research. Each product/supplier offers rating, number of orders by retail stores and total imports.
This information can give you an idea which you can use for better selecting your CBD dropshipping supplier. Some of the independent brands on Modalyst also offer low MOQ private label CBD dropshipping (Oliver’s Harvest, for instance).
Modalyst does integrate with top eCommerce platforms, so you can sync it with your store and import product data. Domestic or overseas shipping depends on the supplier and average shipment cost is $5.
Average shipment time – 5 to 10 business days
Price – Free
7. Sweet Earth
Sweet Earth offers wholesale, dropshipping and even white labeling options.
You can either place orders manually, or use SaleHoo (an online directory) that you can connect with Shopify and perform automated dropshipping.
For wholesale orders, you need to create a wholesale account with them and fill up the wholesale form with your company name and EIN number.
Average shipment time – N/A
Price – N/A
Puffing Bird Droship is a Hong Kong based company with over 4 years of experience. It is one of the best alternative to AliExpress, especially for dropshipping CBD products.
They offer 1000+ SKUs including pipes, grinders, and other unique accessories. You can use their Shopify app and enjoy features like real-time inventory sync, automated fulfillment, and order tracking.
Talking about the shipment, they have warehouses in the USA and Hong Kong. For domestic orders, they ship from an Atlanta based center.
Average shipment time – 1 to 4 days
Price – Free
Other dropshipping suppliers you might like –
9. Longleaf Provisions – Longleaf Provisions is a supplier for selling topicals, tinctures, tonics, beauty & personal care and pet related CBD products. Being based in North Carolina and having a retail store makes it easy for resellers to connect with them and know more about their production.
10. Oliver Harvest – Oliver Harvest CBD products are manufactured by Coast to Coast Naturals located in Florida. It is good for those who are looking for private label CBD suppliers with a low MOQ.
11. CBD Universe – CBD Universe is a private label CBD manufacturer and a subsidiary of Telluse Core. They offer trustworthy products with guaranteed compliance. Also, since they are direct manufacturers, you can expect a higher profit margin.
12. US Hemp Wholesale – They offer both dropshipping as well as wholesale services. You have to sign up for an account. Their shipping cost is slightly higher than most of the CBD dropshippers I reviewed. They charge $8 and take 1 week shipping time.
13. Canna Comforts – Most of the online reviews claimed them to have an okayish quality. They offer wholesale service.
How to sell CBD online (Quick walkthrough)
Step-1. Sign up on Shopify
Shopify is currently the best CBD dropshipping platform this is because of higher dropshipping suppliers integrations and everything-at-one-place interface.
Step-2. Submit the attestation form
Once you have created a Shopify account simply submit the Attestation for the Sale of Hemp and Hemp-Derived Products via the admin panel. Make sure that you are signed in your Shopify store. As soon as you submit the form, you are ready to sell. You don’t need to wait for a response or anything.
Step-3 Select a payment processor
To accept payments for CBD products, you’d need a different payment processor. Currently the best payment gateways for this are DigiPay and eMerchant Brokers. Once this is done you are all set to install a Shopify theme and start adding products. Know more about Shopify CBD guidelines.
Which is the best CBD dropshipping platform?
One thing you need to check even with the best CBD dropshippers is the quality of their products. Make sure to test their products before getting your store live. If your CBD supplier is located far from your target market, or if you are ordering bulk CBD products, you can use a CBD warehouse and fulfillment service like Shipbob. They will take care of inventory storage and fulfillment upon order arrival.
Want a pre-built custom/private label dropshipping store with integrated payment processor?
Get a pre-built CBD Dropshipping store
Should you want help with setting up and launching your CBD store, feel free to reach us out. I will personally create your store for just $49.