Last month, e-commerce platform Shopify launched several tools for CBD and hemp merchants; previously only available to Canadian merchants within the last year.
Since passing the farm bill in the United States in late 2018, which allowed for the farming and cultivation of hemp and cannabis, merchants from 40 US States can now sell hemp and CBD derived products via the platform - on the condition that they have FDA approval.
Similar to the UK, which has strictly regulated CBD since 2001, unchanging the legislature that was written long before products came to market; the US has implemented more recent and strict laws. The harvest of ‘hemp’ must not contain more than 0.3% THC; as per the terms of the bill.
In using Shopify, CBD and hemp merchants will have access to shipping providers, payment processors such as Total Processing, and custom site design tools.
Ranked the #2 shopping platform, replacing eBay and falling just short of Amazon’s ranking; Shopify follows an industry trend that is set to be worth $20bn USD by 2024. Since opening up the platform to Canadian merchants, 100 CBD and/or hemp orders were placed per minute within the last year.
The CBD market is growing rapidly - particularly across the western world. When looking at the US and the UK, the demand for CBD, particularly across the female demographic, has risen to more than half of the population.
Furthermore, 40% of Americans are interested in trying CBD and the demand for employees within the CBD oil sector specifically, has risen by 76% in one year.
Britain itself stands to be the largest producer of legal cannabis worldwide with almost 50% of the world's legal output being produced within the UK. However, it is important to note that most of this output goes into the production of the NHS Sativex drug for MS.
Not only is CBD a growing market, but it is currently a popular marketplace today. Worth more than the Vitamin D and C markets combined, there are 1.3 million regular users of CBD in the UK. On a whole, 6 million used CBD on a temporary or one-time basis last year. With an approximated 1000 new users of CBD every month, it is easy to understand the rapid growth of the industry. In the states, 850 brands of CBD products saturate the market with more emerging each day.
Though the sale of CBD products is only available to US and Canadian merchants, 24% of Shopify’s customers are international; arguing for the increase of these parameters and import sales from the #2 sales platform in the coming months.
How We Can Help:
Total Processing is a long-established provider in CBD Payment Gateways, processing solutions and merchant services to CBD businesses worldwide. Integrating to Shopify on behalf of merchants, the process could not be easier. With a network of 300 acquirers across the globe, our team of sales experts and developers will strive to ensure that merchants will never get shut down.
'CBD in the UK' a report by the Medicinal centre for Cannabis.