On Tuesday, Shopify announced it was unveiling new features on its platform in a move that is geared to boost the online sale of CBD products.
Shopify, an e-commerce company based in Ontario, started allowing Canadians to sell CBD products on its platform in 2018. The company has now extended the same privilege to retailers based in the U.S. on condition that such sales are legal in the state where the seller is based.
The company revealed that some of the tools it was availing to CBD sellers include Reliable Payment and Shipping Providers, Store Design Experience and many other interface customization and marketing features.
It isn’t surprising that Shopify is rolling out the red carpet to CBD retailers since the CBD industry is projected to grow to a value of $20 billion by 2024, so e-commerce platforms that don’t wake up to this money maker are likely to lose out big time.
In the press statement announcing Shopify’s decision to accept CBD retailers from the U.S., the chief operations officer stated that the platform has extensive experience in serving the needs of retailers in emerging industries and that experience has enabled them to get the relevant technologies and partners that would ensure that merchants take full advantage of the huge wave of demand for CBD products.
Shopify recently overtook eBay and is now second to Amazon as the largest online shopping platform, so merchants who decide to sell their CBD products on this platform will be putting their products before a large population of potential clients.
It is important to note that Shopify made it clear that it will not be vetting each CBD product that a seller lists on the platform. However, the platform will investigate any complaints raised against certain CBD products and they will take action against any seller who violates the policies of the online platform.
The platform also suggests that merchants first consult an attorney and review the requirements of the U.S. Food and Drug Administration (FDA) before listing any product for sale on Shopify.
This means that for now, shoppers will have to do their own research about a CBD product before buying it, and the platform will not be held liable in any way for the quality or provenness of a product sold by a merchant.
Analysts believe CBD industry players like VPR Brands LP (OTCQB: VPRB) and Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) will welcome the opening up of Shopify to U.S. CBD sellers since this will deepen the reach of the industry.
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