Post Image

CBD Startups Challenges Grow as Industry Booms

In recent years, the CBD industry has undergone continued growth due to the compound’s amazing potential for humans and their pets. As with any industry, though, the challenges CBD startups face are prevalent. This is especially true for CBD because the legal and regulatory landscape is so complex.

In this article, we explore some of the common challenges that CBD retailers face. See how Greentech’s CBD e-commerce platform addresses these issues and gives you a head start in your new business venture.

Slow, Pricy Licensing

Although several states have legalized cannabis for medical and recreational use, there are still many barriers to entry for those who want to sell CBD online. Even after the 2018, Farm Bill removed “hemp” from the Schedule I drug classification, regulatory standards remain convoluted.

Per IHF CBD LLC, here are a few of the costs that business owners take on when they want to sell CBD:

  • License application and upkeep
  • Long wait times
  • Application costs

These costs add up to higher startup costs for entrepreneurs who want to take on the CBD industry. Luckily, when you utilize Greentech Software’s turnkey CBD websites, you balance out the overhead you’d otherwise experience because we eliminate costs through quick web design, full tech support, and dropshipping options for products.

Another One of the Challenges CBD Startups Face is Mixed Public Perception

One challenge CBD startups face is the mixed perception of CBD products. While many favor CBD and are curious about the benefits for them and their pets, others have a negative perception of it. Oftentimes, this is due to the compound’s connection to marijuana. Because marijuana is still illegal at the federal level, businesses even loosely associated with it are not always socially accepted.

The good news is that these perception trends are more and more positive as time passes. After the 2018 Farm Bill made hemp-derived products legal, those who have a negative perception of marijuana are growing more curious about the benefits of CBD products. Because CBD doesn’t cause the same “high” as THC, it offers an opportunity to experience cannabis without what they view as a negative aspect of it.

Payment Processors and Transaction Issues

Finding the right payment processor is one of the main challenges CBD startups face. However, our CBD e-commerce platform works with some of the best payment processors in the CBD industry to ensure your website is viable and functional at all times.

In the early days of CBD, some credit card vendors were reluctant to let CBD businesses use their platform. They viewed the business as a risk, and this forced any retailers into cash-based practices. Today, more of these vendors favor virtual payment gateways for payment processing.

The growing change in perception is sure to have a continued impact on the acceptance of CBD businesses. In the meantime, you can rest assured that your turnkey CBD website is equipped with the top payment processors in the industry when you utilize Greentech Software.


The CBD industry offers a huge opportunity, and this means that it attracts more and more investors than ever before. As with any trending industry, this fosters a highly competitive environment. The difference in the CBD industry is that so many of these businesses fall off due to the high regulatory challenges CBD startups face.

Because people often dive headfirst into the CBD industry, websites are often shut down for illegal labeling or false advertising. The Food and Drug Administration (FDA) is quite strict, and your online CBD store needs to maintain compliance with the stringent regulations.

While this is a challenge for many startups, our CBD e-commerce platform gives you a leg up on the competition. Through our platform, you are connected to suppliers who provide high-quality CBD products that undergo third-party testing. When you utilize our platform, your turnkey website is equipped with FDA compliance statements and Certificates of Analysis (COAs) to verify the contents of the products you sell.

Challenges CBD Startups Face Are Overcome with Greentech Software

These are some of the main challenges CBD startups face when they want to enter this booming industry. As you can see, investing in the industry may involve more than you expected.

However, our CBD e-commerce platform gives you a head start towards turning profit by ensuring you remain compliant. All you have to do is market your products in approved campaigns and build a community around your brand. Curious? Schedule a demo to see what we can do for you!

CBD Marketing Tactics: How to Sell CBD Online