What are the benefits of Snowmelt’s Quality Control Spec Sheets?

Posted on by Kaylyn Perry

Does your business have a full-time quality control employee? Do you ask your factory or manufacturer to sign an agreement to ensure correct production of your products? Chances are you answered no to both questions which creates the possibility of a poorly produced product or a sudden raise in price mid-production. This is where Snowmelt comes in.

Capture Key Information

By using the app, you can capture key information about your product down to the graphics and packaging. Snowmelt creates a mobile friendly shareable document to serve as an agreement between you and the factory you chose to produce the item.

Protect your Business

Ask your factory to sign the documents created within Snowmelt so that they are more inclined to pay attention to what you need. That way, in case your items are not produced correctly, you have some leverage against the manufacturer.

For example – do you want a specific type of leather in your leather wallets? With Snowmelt you can specify the leather quality and leather color. Make sure your factory is quoting you at the type of leather that you want and not whatever leather they have leftover from last year!

Get Accurate Quotes

With Snowmelt, you can use the spec sheets during the product development and quoting stage of a new product. Use the app to capture what you are seeking in your new item and use the sheets Snowmelt generates to get accurate quotes. That way, each manufacturer you get a quote from is quoting exactly what you asked for and against the same sheet of information. This makes the factory selection process easily comparable and stress free.

Don’t have the capital to hire a full time production specialist and quality control employee? Use Snowmelt instead. Snowmelt is a fraction of the cost of an employee and can function as an extension of your business. Download Snowmelt today.

Create a Purchase Order Template with Snowmelt

Posted on by Kaylyn Perry

Take your Snowmelt spec sheets and quality control to the next level with our easy to use purchase order (PO) generator.

The purchase order (PO) template on Snowmelt is a protective agreement that helps protect your business. Simply generate the PO template on Snowmelt to capture the cost, quantity and item name of the product you are ordering. Include your factory’s address and their contact information.

Customize the payment terms and late shipment protective clauses with terms you are comfortable with and get your factory to sign the PO at the bottom to establish the agreement.

a screenshot of a purchase order with highlights

Tip: Have your factory sign the Snowmelt Spec Sheet and your Snowmelt PO, ensuring everyone is on the same page about your product specifications.

For instance, if you order a 5 inch tall cup, and you receive it and it is 6 inches, if you had your factory sign these then you could be better protected. That way, not only did they agree to produce it at 5 inches, but the PO template that they signed outlines the compensation you should expect for such a mistake.

Get your product quality control and order forms under control and implement industry best practices with Snowmelt. Download Snowmelt today.

How to Become a Walmart Marketplace Seller

Posted on by Kaylyn Perry

Walmart attracts millions of shoppers, so it’s no wonder their online marketplace is catching the attention of sellers and shoppers. Similar to Amazon, the Walmart marketplace allows third-party sellers that are approved. 

With over 100 million unique visitors monthly on Walmart.com, becoming a seller on their marketplace can give your business the boost it needs to reach new customers and increase sales. So, how do you sell off the Walmart marketplace?

In this guide, we will walk you through the steps to becoming a Walmart marketplace seller and give you tips on how to maximize your success on the platform.

Whether you’re a small business owner looking to expand or a seasoned eCommerce entrepreneur, read on to learn how to become a Walmart marketplace seller and take your business to the next level.

How do I become a seller on Walmart marketplace?

Becoming a seller on Walmart marketplace is a straightforward process that you can complete in a few simple steps. Walmart seeks established businesses that are legitimate. So, if you’re brand new to selling, you may not qualify. Furthermore, they vet sellers to ensure they can fulfill orders quickly and offer customer support. Be sure to research requirements before investing the time to apply. Here are six steps to take to become a Walmart marketplace seller. 

Step 1: You will need to apply to become a marketplace seller by visiting the Walmart website. This involves filling out a form and providing some basic information about your business.

Step 2: Once your application has been approved, complete your registration by providing additional details about your business and agreeing to the terms and conditions of the marketplace.

Step 3: Next, complete your partner profile, which includes information about your products, shipping, return policies, etc. This is important as it will help customers find your products and understand your business.

Step 4: Set up your items as soon as your profile is complete. This process involves creating product listings and providing detailed descriptions, images, and pricing information.

Step 5: You should test your items and orders to make sure everything is working correctly. This way, you can work out any issues before you launch your account. Furthermore, Walmart will do their own tests before letting the listings go live. 

Step 6: Finally, launch your account and start selling your products on the Walmart marketplace. It takes just a bit of effort and patience to succeed as a Walmart marketplace seller.

Walmart Marketplace Helpful Resources

New and existing sellers can take advantage of helpful resources including:

What are the requirements to sell on Walmart Marketplace?

To sell on Walmart marketplace, you will need to meet certain qualifications. At the minimum here are some of the requirements set forth by Walmart. 

–   Have a valid Business Tax ID or Business License Number.

–   Provide documents that verify your business name and address.

–   You should have a history of success in marketplace or e-commerce sales and your products must have GTIN/UPC GS1 Company Prefix Numbers.

–   Your catalog should also comply with Walmart’s Prohibited Products Policy.

–   You will also need to fulfill orders through Walmart Fulfillment Services (WFS) or another B2C U.S. warehouse with returns capability.

Gathering all this information before starting the application process to make it smoother and faster. It can also help avoid getting denied and potentially wasting any precious time. 

What are the Walmart marketplace fees for sellers?

The Walmart marketplace fees for sellers include a referral fee, and an optional storage or fulfillment fee. Here’s an overview of the fees to sell on the marketplace. 

  • Referral fee: A percentage of the sale price of each item sold on the marketplace is collected by Walmart. The exact percentage varies depending on the category of the product, but it typically ranges from 6% to 20%. View a list of referral fees by category here. 
  • Fulfillment fees: These fees are based on the weight and/or dimensions of the product you’re selling. Walmart Fulfillment Services (WFS) vary the prices based on the product’s size and weight. Similar to Amazon, Walmart offers fulfillment services for a fee. 
  • Storage fees: The amount you’ll pay WFS to store your inventory depends on the number of cubic feet needed, the time of year, and how long your goods stay in a Walmart fulfillment center – should you choose to use their fulfillment center. 

Walmart also offers pay-per-click advertising options, but to qualify for any Walmart Marketplace advertising, sellers must commit to a monthly spend of at least $1,000 with a daily cap of $100. You can calculate your exact fees with this WFS calculator.

Tips for winning the Walmart Buy Box

The Buy Box is essentially what consumers will click to buy a product. If more than one seller is selling the same product, they will share the buy box with other sellers. 

Winning the Walmart buy box is a highly sought-after goal for sellers on the platform. Here are some tips to help increase your chances of winning the buy box:

  1. Optimize your product listings by ensuring they are complete, accurate, and up-to-date with high-quality images and detailed product descriptions
  2. Monitor your pricing and make sure you are pricing your products competitively.
  3. Maintain a high feedback rating by providing excellent customer service and receiving positive feedback.
  4. Utilize Fulfillment by Walmart (FBA) since Walmart gives preference to sellers who use FBA for their products.
  5. Make sure you have enough inventory to meet customer demand. Walmart prefers sellers who can consistently fulfill orders in a timely manner.

These tips can increase your chances of winning the Walmart Buy Box and growing your sales on the platform.

Best practices and tips for selling on Walmart Marketplace

Here are a few key strategies that can help increase your sales and visibility when selling on Walmart Marketplace:

  1. Win the buy box: The buy box is the featured spot on a product page where customers can add items to their cart. Winning the buy box can greatly increase your sales, as it is the first option customers see when browsing products. To increase your chances of winning the buy box, make sure your prices are competitive, your inventory is well-stocked, and your shipping times are fast.
  2. Be competitive on price: Customers on Walmart Marketplace are looking for the best deals. To ensure your products stand out, make sure your prices are competitive with other sellers. Keep an eye on your competitors’ prices and adjust yours accordingly.
  3. Use Walmart integration across platforms: Walmart offers integration with a variety of platforms, including Shopify, BigCommerce, and Magento. By integrating your store with Walmart Marketplace, you can easily manage your inventory, pricing, and orders all in one place.
  4. Invest in sponsored products: Sponsored products are a great way to increase product visibility. Your products will appear at the top of search results and on product pages, increasing the chances of customers seeing and purchasing your products.
  5. Promote Walmart reviews: Encourage customers to leave reviews on your products. Positive reviews can greatly increase the visibility and credibility of your products, leading to more sales.
  6. Monitor your performance: Keep an eye on your sales, reviews, and customer feedback. This will give you a clear picture of how your products are performing and where you need to improve. You will also identify which products are selling well and which are not, so you can adjust your inventory and pricing according

How Kickfurther can help

Kickfurther can help you become a successful Walmart marketplace seller by providing you with the necessary funding to purchase inventory without the constraints of traditional lending sources. Our platform connects you with a community of buyers who are willing to invest in your inventory on consignment. This means that you can purchase the inventory you need to fulfill orders without having to pay back the funds until you have received cash from your sales.

The result? Financial flexibility to scale your business quickly without worrying about cash flow constraints. You can also customize your repayment schedule to align with your sales cycle. Paying back the funds as you receive cash from your sales, rather than having to adhere to a rigid repayment schedule that may not align with your business needs, allows you to maintain inventory levels and financial flexibility as you grow your business.

Closing thoughts 

Becoming a Walmart marketplace seller is a great way to expand your business and reach a wider audience. By following the steps outlined in this guide, you will be well on your way to success as a Walmart marketplace seller. Remember to focus on creating high-quality product listings, providing excellent customer service, and staying compliant with Walmart’s policies.

Kickfurther can be the key to unlocking your success as a Walmart Marketplace Seller. With our funding options, you can rest easy knowing that you have the resources to fully stock your inventory and meet the demands of your customers.

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about inventory financing options for Walmart Sellers with Kickfurther.

Top Ways to Source Inventory for Amazon

Posted on by Kaylyn Perry

Starting an eCommerce business on Amazon can be exciting and rewarding, but inventory sourcing remains one of the biggest challenges.  So, just how do you source products for Amazon? While it can be broken down into rather simple steps, it’s a complex process that involves research, analysis, and time. And, no matter how good you are at sourcing, you’re not always going to win. 

Whether you’re just starting out or looking to expand your product line, finding reliable suppliers that can provide the products you need at the right price is vital. Read on as we explore several different ways to source inventory for Amazon and share strategies that can help you find the right products to sell and build a successful eCommerce business.

What is product sourcing for Amazon?

Product sourcing for Amazon involves finding and acquiring products to sell on the Amazon marketplace. Steps of product sourcing can include the following:

  • Researching and identifying products with profit potential
  • Negotiating with suppliers
  • Managing inventory
  • Logistics

Sellers can source products in a variety of ways, including manufacturing their products, dropshipping, or wholesale buying. Amazon product sourcing is a crucial step in the process of starting a business on the platform. It requires research, knowledge of the market, and networking skills to find the best products at the best prices. And by sourcing products effectively, sellers can increase profits and grow their business on Amazon.

How do you source products for Amazon?

There are several ways to source products for Amazon, depending on your specific business needs and goals. Here are some of the most common methods:

  • Purchasing from manufacturers: One common method of product sourcing for Amazon is to work directly with manufacturers to purchase products at wholesale prices. There are two ways to go about this:
  • Overseas supply: This involves working with a manufacturer or distributor based in another country to acquire products for your Amazon store or listing. This approach can be beneficial because it typically offers a wider variety of products at lower costs. However, it can also be more complex and time-consuming, as you’ll need to navigate international shipping and customs regulations.
  • Find a domestic supplier: You can also research and reach out to manufacturers or distributors within your country. This sourcing method reduces shipping times and costs, as well as ensures compliance with regulations and laws. Consumers may be more willing to purchase if they know your product is made and sourced in the USA, but it can drive costs up. 
  • Buying products from wholesalers: Wholesalers sell products in bulk to retailers at a discounted price. This method allows sellers to purchase a large number of products at once, and then resell them on Amazon.
  •  Selling handmade goods: This approach is ideal for entrepreneurs who create their own products and want to sell them on Amazon. If you’re an artist, designer, or craftsperson, selling handmade goods on Amazon is a great way to reach a global audience and turn your passion into a profitable business. However, you may have better luck on marketplaces that favor custom work such as Etsy.
  • Liquidation: Some sellers also choose to source products from other retailers, such as liquidation companies or clearance sales. But this method can make it more difficult to find products in large quantities and the condition of the products may vary.

Regardless of how products are sourced, sellers can take advantage of  Fulfillment by Amazon (FBA). Under this program, sellers can send their products to Amazon’s warehouses to store and ship the products to customers on their behalf. This can help reduce overhead costs as well as expedite shipping times. It can also help save on labor. 

Tips for finding the best products to sell on Amazon

Selling on Amazon can be lucrative, but it all begins with finding the right products to sell. With so many options and competitors, it can be hard to know where to start. Here are some tips to help you find the best products to sell on Amazon:

  • Low competition: One of the most important factors to consider when finding products to sell on Amazon is the level of competition. It can be difficult to compete with established sellers who have been in the market for a long time. Find categories with relatively few sellers, or search for products that don’t have a lot of similar items listed. You can also look up products in niche categories or identify unique features of a product that sets it apart from others.
  • Best sellers rank: Another important metric to consider is the Best Sellers Rank (BSR) of a product. This ranking is based on the sales of a product and is a good indicator of its popularity. When searching for products, look for categories with at least three results with a BSR. This will give you an idea of which products are selling well and which are not.
  • Request samples: before making a large purchase, it’s always a good idea to request samples of the product. You can test them out and see if they are of high quality and a good fit for your target market. It also gives you a chance to take pictures and make videos of the product to use in your listing.
  • Understand and calculate all your fees: Before selling on Amazon, understand and calculate all the associated fees. This includes Amazon’s referral fees, fulfillment fees, and other charges. Doing this ensures that your profit margins are sufficient and that you are not losing money on your sales.
  • Choose the best shipping method: Shipping costs can make or break your profits on Amazon. Choose the best shipping method that’ll keep your costs low while ensuring fast and reliable delivery to your customers. Consider using Fulfillment by Amazon (FBA) for your products as it offers several benefits such as discounted shipping rates, and improved visibility for your products.
  • Pick products that cross-sell well: When looking for products to sell on Amazon, pick those that cross-sell well with other products. This helps increase your sales and profits. For example, if you sell kitchen appliances, you can also sell related items such as kitchen utensils, cookware, and even recipe books.
  • Pay attention to Amazon customer reviews: Amazon customer reviews are a great way to gauge the popularity and quality of a product. You can identify products that are in high demand and have a high satisfaction rate among buyers. This can help you make informed decisions when selecting products to sell on Amazon. Reviews can also help you determine areas of improvement for existing products.
  • Price negotiation: Once you have found a product you’ll be selling, always negotiate the price with the supplier. Consider requesting a discount or asking for a better deal. Negotiating with suppliers increases your chances of getting a better deal on the products you are interested in, which helps improve your profit margin.
  • Alibaba: Alibaba is a popular platform for connecting with suppliers. Suppliers on Alibaba can make custom products or prefabricated products. Alibaba can be confusing to navigate so do some research. Consider getting a mentor that’s familiar with the site.
  • Use product data: There are applications that can be downloaded to help sellers identify what products are selling well and where there may be opportunity.

How Kickfurther can help

Amazon sellers may be able to cut costs on fulfillment, storage, and hosting a platform – but they will need plenty of funds for inventory. And, that’s where Kickfurther comes in. Kickfurther can help Amazon sellers access affordable inventory funding. As the world’s first online inventory funding platform, Kickfurther enables small businesses to access funds that they are unable to acquire through traditional sources. 

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther? 

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow. 

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

Closing thoughts 

Sourcing inventory for Amazon can be seamless with the right strategies and tools. Whether you choose to work with a supplier, dropship, or even consider retail arbitrage, do your research and find the best option for your business. The key to success on Amazon is having a steady stream of profitable products to sell. With the right approach, you can find and source the inventory you need to grow your business and achieve success on the platform.

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about Amazon inventory financing options with Kickfurther.

Working Capital Financing Options for Women

Posted on by Kaylyn Perry

Women generally are less likely to be approved for small business loans and can have  a harder time obtaining financing for their businesses. Because of this, many female entrepreneurs explore a working capital financing solution.

Working capital financing is an alternative way to cover those day-to-day expenses without securing a larger investment or loan. By leveraging the business cash flow, working capital financing products are quick to obtain and offer many options to fit your business needs.

At Kickfurther, we’re working to help provide access to the funding female business owners need to grow their inventory and scale their businesses. Here’s how working capital can benefit women-owned businesses.

What is working capital financing  for Women?

According to the Federal Reserve, female entrepreneurs are less likely to get approved for a small business loan than male peers. Working capital financing is a straightforward and simple way for women to get the funding they need to cover everyday operation expenses like payroll, marketing, and other short-term expenses that are necessary for running a business.

Working capital loans are secured loans that are paid out in a lump sum with a set repayment period. They’re often secured with collateral from the business, like unpaid invoices or equipment and are repaid over a shorter period of time. Alternative loans such as inventory loans or equipment loans can be used to free up working capital as well. Inventory loans and equipment loans are for a designated purpose and are usually secured by the purpose i.e. the inventory or equipment.

What are the types of working capital financing options available for women?

While working capital is a type of alternative financing, several different lending products fall under the working capital category. Some of the most popular ones include:

  • SBA Loans: The Office of Women’s Business Ownership, a program coordinated by the Small Business Association, offers special resources and training to help women get the funding they need for their businesses. Specifically, the SBA offers a program called 8(a) Business Development, which helps smaller or disadvantaged companies obtain financing. Through this program, the SBA will help connect female entrepreneurs with lenders that are interested in working with them.
  • Invoice Financing: With this working capital option, a business’s unpaid invoices are considered collateral to qualify for funding. Invoice financing involves selling outstanding invoices to a third-party company, which will offer the outstanding amount minus any fees.
  • Merchant Cash Advances: Another common type of working capital financing is a merchant cash advance. This solution will give business owners a lump sum of money, which the borrower will then repay by providing a percentage of their credit card transactions to the lender. This is a good option for businesses that do a lot of credit card sales, but it can also be expensive depending on the factor rate of the loan.
  • Inventory Funding: Inventory funding can be used to fund inventory and free up cash flow. At Kickfurther, entrepreneurs can secure inventory funding through a community of backers. Our solutions are up to 30% cheaper than alternative options. 

Which financing option is best for women entrepreneurs?

Depending on your business model, the amount needed, and the repayment terms you’re able to afford, it’s best to explore all options to find the best fit. 

As female entrepreneurs consider the working capital financing option that’s best for them, it’s crucial to have a clear picture of your business’s revenue. If your business has a lot of outstanding invoices, invoice factoring might be a good option for you. Or, if you don’t do many credit card sales, it’s probably ill-advised to move forward with a merchant cash advance.

What credit score is required to qualify for working capital as a women based entrepreneur?

One of the biggest benefits of obtaining a working capital loan is that the credit score requirements are less stringent than traditional financing. While a higher credit score will unlock the best rates, even borrowers with a low credit score of 500 can qualify for a working capital loan. This makes it an excellent solution for those who aren’t eligible for traditional financing or with poor credit.

Tips for applying for working capital financing 

Applying for working capital financing as a female entrepreneur is a bit different than the process of applying for a traditional loan option. Since the qualifications are based on your business’s cash flow, here are some tips we suggest to boost your approval chances:

  • Borrow only what you need – The lower the amount you need to borrow, the more likely you’ll get approved for financing. By only borrowing what you need, your repayment will be lower, and you’ll pay less in interest.
  • Prepare and submit a business plan – Your lender will feel confident and assured that you have a clear way to repay the loan if you submit a thorough business plan with your application. This will outline your business goals, growth plans and a specific plan on how you’ll pay back the loan.
  • Calculate your quarterly cash flow – One way to understand how much you should apply for is to have a clear picture of your business’s quarterly cash flow. Since working capital financing is secured by your company’s revenue, having a solid cash flow will help your approval odds.
  • Shop for a lender that specializes in working capital – As you review all your financing options, it can be beneficial to pick a lender that specializes in working capital.

Are there tax advantages for women entrepreneurs? 

While there is no federal tax code that benefits women entrepreneurs, there are some ways that minority business owners can benefit from certain tax incentives and programs.

The New-Markets Tax Credit is one tax program that offers incentives for investing in minority businesses in low-income areas. Investors who give capital or funding to qualified businesses can benefit from a 39% tax credit over seven years. This could help female entrepreneurs attract outside investments if they fall within the guidelines.

Additionally, there are tax breaks for businesses operating in an “empowerment zone.” These zones are outlined by the Department of Housing and Urban Development and the Department of Agriculture and provide tax credits for businesses operating in these designated areas. The “empowerment zones” have been designated as areas that could benefit from additional economic growth.

Make sure to speak with a qualified tax advisor to learn more about these tax programs and how they could impact your business.

How Kickfurther can help

For many female business owners,  inventory is their largest operating expense. At Kickfurther, we connect women entrepreneurs with a community of buyers looking to fund inventory, allowing you to repay the financing on your own terms.  Kickfurther will directly pay your manufacturer, giving you access to the inventory you need. And with customized repayment schedules, you won’t start making payments until you start making sales.

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther? 

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow. 

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

Closing thoughts 

If you need a fast and flexible loan for your business, working capital financing is a great alternative solution to traditional business loans. For companies that sell physical products or non-perishable consumables and have revenue between $150k to $15mm over the last 12 months, Kickfurther can help. We connect brands to a community of backers who help fund inventory on consignment and give brands flexibility to pay that back as they receive cash from sales. Kickfurther can help startups and small businesses fund millions of dollars of inventory at costs up to 30% lower cost than the competition. With more than $100 million in inventory funded to date, Kickfurther can help you get funded within a day or even minutes to hours. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about Financing Options for Women Based Entrepreneurs

5 Tips to start a successful Shopify CBD store

Posted on by Kaylyn Perry

Did you know that a Shopify CBD store can be a lucrative business venture? 

CBD is the latest craze. This non-psychotic cannabis constituent is known for producing many wellness benefits including stress and pain reduction. Many entrepreneurs are getting in on the ground floor by opening their own CBD businesses. Some even using Shopify as a retail platform 

Shopify is an all-in-one commerce platform that makes it easy to launch your dream business.  But, can you sell CBD on Shopify? 

Is it legal to sell CBD on Shopify?

Yes, it’s legal to sell CBD on Shopify but you’ll need to adhere to certain guidelines. 

First, there are certain rules and regulations concerning CBD sales. They differ from state to state. You must consult a lawyer to find out about the laws that apply to ensure your CBD store doesn’t get shut down.

There is also a Shopify CBD policy that you must comply with. If you sell edibles or gummies, you will also have to consult with the FDA to ensure all the products you carry are up to code.

Types of CBD products you can sell

There are a variety of CBD products you can sell on Shopify, including the following. 

  • Capsules: CBD capsules contain a CBD extract covered by a softgel. People enjoy their convenient dosage form.
  • CBD for vaping: Some people take advantage of CBD benefits by smoking it in a vape pen. Customers can purchase vape cartridges filled with CBD for this purpose. Many cannabis businesses also sell a variety of vaping accessories.
  • CBD Edibles & Gummies: CBD is often added to food products like gummies and baked goods like cookies and brownies. When consumed in edibles, the onset is delayed but the effects are more powerful.
  • CBD Topical creams and ointments: CBD can be infused into creams and other topicals. These are typically applied directly to the skin to reduce pain. CBD can also be used in beauty product creams for its moisturizing effects.
  • CBD Oils: CBD extract is also available in liquid form as an oil that can be administered under the tongue with a dropper.

Will I need a license to sell CBD in my Shopify store?

Only Canadian sellers are required to obtain a license to sell Shopify CBD products. They must also use Shopify Plus.

Sellers in all other jurisdictions must follow Shopify’s Terms of Service and Acceptable Use Policy which ensures they are complying with all applicable laws and regulations. However, a license is not necessary.

How profitable is the CBD industry?

CBD has been steadily growing in popularity over the past few years. People love it because it’s an all-natural remedy that offers a variety of health benefits. As a result, CBD sellers are seeing considerable profits.

According to Leafly, long-term CBD sellers can see average profits of around 15%. However, this is contingent on using smart business strategies. Taxes, operating costs, and the size of the business will also affect how much the company nets.

How to apply for a CBD Merchant Account

CBD is currently considered a high-risk business. Therefore, it can be difficult to find a financial institution to process payments.

Shopify does not provide a payment processor for CBD purchases due to its high-risk status. Therefore, you will need to go through a third-party merchant.

Here are the steps you will need to take to apply for a Shopify CBD merchant account:

  • Apply for the Merchant Account: First you will need to apply for your merchant account. The merchant will want to know how long you’ve been operating and what your sales volume and chargeback rates are like.
  • Complete the underwriting process: Next Shopify will go through the underwriting process which involves accepting financial responsibility for your transactions. They may require documentation such as a Certificate of Analysis that shows the THC content in your product is below .03%.
  • Approval: Once you’re approved, you can enjoy a seamless experience through the Shopify platform. You should have access to your money as soon as transactions are processed by the bank. You will also be able to take advantage of Shopify features including a portal where you can view all your transactions and risk management tools.

Tips to maximizing your revenue

There are several strategies you can use to maximize revenue for your Shopify CBD store. Here are some tips for maximizing revenue.

  • Connect to an email marketing platform: Email has been shown to produce a high ROI. You can link directly to Constant Contact’s Shopify integration to stay connected with customers and promote repeat business. You can send out welcome emails, newsletters, and abandoned cart emails to keep business flowing.
  • Focus on customer retention: You can keep customers coming back by offering loyalty programs, discounts and great service. Quality products and prompt delivery are important too. 
  • Use SEO: SEO strategies will ensure your Shopify CBD store is as visible as possible. It involves using keywords in your product descriptions. You will also bring in customers by making your descriptions accurate and enticing.
  • Focus on the right products: There are many CBD products you can offer for sale. To be competitive in the marketplace offer a variety of products and don’t forget to offer a description. Find ways to differentiate your products from other brands. Specializing in certain types of products can also help you capture more sales and a loyal clientele. 
  • Encourage cross selling and upselling: You can cross sell or upsell your products to increase revenue. Cross selling involves trying to get customers to purchase additional products. For example, if someone buys a vape cartridge, you can recommend they purchase other vape accessories. If they purchase a certain type of cannabis, you can upsell and recommend they buy a higher grade that’s more expensive, but also more of a value. You can program the platform to automatically make upselling and cross selling recommendations.

How Kickfurter can help

Kickfurther is the world’s first online inventory funding platform that enables small CBD businesses to access funds that they are unable to acquire through traditional sources. CBD companies are often deemed high-risk and therefore struggle to obtain affordable financing, or for that matter, even be given a chance. For companies that sell physical products or non-perishable consumables and have revenue between $150k to $15mm over the last 12 months, Kickfurther can help. We connect brands to a community of backers who help fund inventory on consignment and give brands flexibility to pay that back as they receive cash from sales. 

Kickfurther can help startups and small businesses fund millions of dollars of inventory at costs up to 30% lower cost than the competition. With more than $100 million in inventory funded to date, Kickfurther can help you get funded within a day or even minutes to hours. 

Closing thoughts

While online businesses can enjoy reduced overhead and less staffing, overhead is still high. Oftentimes, Shopify CBD retailers encounter cash flow challenges as a direct result of inventory costs. Before diving into inventory funding, make sure that inventory is being properly managed and any waste is eliminated. Once you have momentum and an efficient inventory system, you’ll be ready to explore inventory funding. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about CBD Inventory Financing Options with Kickfurther.