In previous blog posts, we’ve been discussing the EU CBD market. We summarised the market size, looked at some trends and discussed its potential. Another blog post talks about the complexities of the CBD e commerce market and how to navigate your way through them. This post will give you a bird’s eye view on streamlining your checkout processes to reduce obstacles to achieve success in the CBD ecommerce marketplace.
CBD businesses often face unique challenges due to the nature of their products and a complex regulatory landscape. Here are some ideas for enhancing payment integration on your CBD ecommerce site.
Not all payment providers are created equal
The words ‘money’ and ‘risk’ are synonymous. Most payment processors see the CBD market as high-risk. It might be because there are so many legal and regulatory complexities. Compliance is tricky enough without high-risk businesses, so why complicate it even more – some processors might say. Perhaps it is because the market is still so ‘new’, and payment processors are waiting to see if the game will be worth the candle. Whatever the reason is, good payment processors operating in the CBD market are hard to come by. And you better do your homework to avoid high chargebacks, high collateral, non-compliance, and a world of pain not worth mentioning here.
Cart abandonment is one of the biggest challenges all ecommerce merchants face. As high as 88% of customers fill their carts just to abandon them when it comes to checkout and payment. If you can reduce that figure by just 10% it will make a massive difference to your bottom line. A sure way to do that is to ensure that customers can complete their purchases seamlessly, securely and most importantly – fast!
Why don’t you consider Truevo Payments? We process payments and are an acquirer operating across the EEA. Compliance is our middle name, as is customer service and fast processing. We make money flow for thousands of merchants in multiple markets. We deliver simple, secure online payment processing that just works. Best of all, we don’t wince at an application from a CBD client. In fact, we welcome them. Check out some of our services and connect with us here.
Age is not just a number
In the CBD market, age matters. Different countries restrict the purchase of CBD products by people under a certain age. It varies. Merchants must ensure their ecommerce sites display required age restrictions applicable to each country they trade in. Build age verification into your site to prevent unauthorised sales and complicate checkouts. You’ll thank us later.
Your market is on the move
Research on the CBD market in Europe is hard to come by because countries are changing legislation as we speak, and new markets are opening fast. Prohibition Partners publishes The European Cannabis Report. The 7th Edition is available to download for free, or you can purchase various premium packages. According to the Report, people of all ages use CBD. Their ages range from their 20s to late 60s. Whatever their age, they are mobile. Insider Intelligence predicts mcommerce sales to hit $543.18 billion, or 40,4% of ecommerce sales, by 2024. Two key devices are driving the mcommerce revolution: smartphones and tablets. You would be an absolute fool to ignore this trend. Build your checkout processes and site to be mobile first and streamline your customers’ checkout experiences.
Digital wallets are synonymous with mcommerce. Big players in the market include ApplePay, and GooglePay. Ensure you offer these options and build your checkout and payment processes to work in the blink of an eye. The easier it is for people to pay, the more they will buy from you.
Build a boomerang business
For all the complexities involved in playing in the CBD space, one benefit makes it worth the effort. CBD clients will come back again and again like boomerangs. Their wellness needs will increase as they grow older. So, if you look after them properly when you first engage, you’ll see them again. Build your payment processing to accommodate it. Offer subscription options, or recurring payments, right from the get-go. You can also incentivise customers to join this payment method by providing a loyalty programme and other incentives. The uptake of this is you know your income and sales in advance. It makes stock production, distribution and marketing a whole lot easier. Guess what? Truevo offers subscription billing. Now you can automatically debit your customer’s card or send invoices and reminders to prompt them to pay for their subscriptions.
In conclusion, if you want to be successful in the CBD market, build your ecommerce store on a solid foundation. Choose a payment provider that processes CBD payments. Build everything mobile-first, and ensure you have age verification on your site. Last but not least. Choose a payment provider that is fast, agile, and secure. Contact Truevo we can’t wait to play a little boomerang with you.
Disclaimer: This content has been written for informational purposes only. It should not be construed as legal or business advice. Do not make and refrain from making any serious or legal decisions based on the content of this post without seeking professional advice.