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Using Shopify POS for CBD Retail

cbd cream
written by:
Shawn Silver

CBD retailers in 2025 have a different focus. With increased consumer demand comes regulation, and in addition to the regulatory barriers to entry for selling a CBD product, financial hurdles create barriers not faced by more traditional merchants. As such, one of the considerations a merchant should take into account is which point of sale (POS) to use. While Shopify is one of the more widely used e-commerce solutions and boasts a connected POS system with its online store, when it comes to assessing POS for CBD, what is the point of sale on Shopify, and can Shopify be a POS provider for high-risk merchants?

What Is Point of Sale on Shopify?

Point of sale on Shopify is the connection between online shopping and in-store and in-person experiences[1]. It allows a retailer, brick and mortar and online and at pop-up events, to have one sales log that’s continuously synced. For CBD retailers, this means access to sales reports, compliance logs, and inventory tracking all from one cloud-based location. The POS operates as an app on tablets and phones, connectable to any card reader, receipt printer, cash drawer and more. While this may seem like standard procedure for any POS, for CBD retailers, it’s more than just a place to make a sale. What is point of sale on Shopify? It’s a transaction management system that allows overstretched retailers to pay attention to background checks, batch numbers, and age limitations without too much mental bandwidth lost during a sale.

Shopify as a CBD POS System

Choosing a POS provider in the CBD space is more complicated than standard retail, as within this space, companies and credit card processors deem CBD high risk with banking issues and regulatory concerns. However, Shopify has seen this gap and provided the integrations to allow CBD merchants to sell online—and in-person (to an extent, based on what they’re selling and where their business is located). For physical locations, Shopify’s benefit is in how simple it is to use, how centralized data is generated, and how it connects with 3rd party payment gateways that service high-risk merchant accounts[2]. Thus, while Shopify may not solve processing on its own for CBD merchants, it provides a structure under which growth operates effectively.

Payment Processing Features Important to CBD Merchants

One important feature that merchants should note about Shopify POS for their CBD store is payment processing. Shopify Payments—their native gateway—does not support CBD transactions. Thus, merchants must connect to an outside high-risk processor that accepts CBD transactions. The good thing about Shopify POS is that it allows for these integrations. Therefore, retailers can keep a front-end system even though the back-end processor needs to be customized to a high-risk processor. For CBD merchants, this is essential because processors can change mid-process after compliance checks or based on banking relationships. Thus, using Shopify with a high-risk processor minimizes downtime and allows for consistent transaction processing.

Inventory and Compliance Management

Shopify POS is also favored by CBD retailers for inventory and compliance management. Where other retail settings might not need so much tracking and compliance, CBD retailers have to keep tabs on a lot—literally. Lot numbers, expiration dates, and even source documentation are often required, and Shopify POS not only keeps this inventory tracking but can also integrate compliance tracking software to make record substantiation during regulatory audits easier[3]. For those CBD retailers who are omnichannel, with a retail presence and an online store, real-time syncing prevents overselling while keeping consistent logs across all platforms. Furthermore, Shopify’s POS reporting feature makes it easy for retailers to generate data summaries for cannabis compliance.

Customer Experience and Loyalty

CBD retail is saturated with heavy competition, so customer loyalty is everything to profitability. Therefore, Shopify POS has integrated customer management features that allow retailers to save purchase history, note customer preferences, and create customized loyalty programs. For example, retailers could give a discount for repeat purchases or create a buy three get one free offer for topical use products. These features help differentiate CBD retailers from competitors and enhance the in-store experience. In addition, because Shopify retains customer purchase data online and during in-person purchases, CBD retailers can offer omnichannel loyalty programs for more digitally-focused customers.

Shortcomings of Shopify POS Regarding CBD Retail

While Shopify POS has many features, there are shortcomings regarding CBD retail. The most significant is payment processing. Shopify Payments is not available for CBD; thus, merchants must go through a third-party integration. Sometimes it’s more expensive, sometimes it requires stricter underwriting or additional requirements. Another shortcoming is geographical location. Depending on where a retailer is located, various rules apply to selling CBD—not only in the United States but across the world. While Shopify grants access to retail and customer sales and inventory, it’s the merchant’s responsibility to comply with proper shipping rates, fee structures and product inclusions[4]. Furthermore, third-party apps and integrations within Shopify may not accommodate high-risk products, so merchants must tread lightly. Unfortunately, CBD merchants still need to pay attention to their POS systems and processors, meaning they cannot just set it and forget it.

What Experts Project About the Future with CBD Retail and Shopify POS

Thankfully, experts agree that the future of CBD retail is promising; demand is projected to increase consistently until 2025 and beyond. This means that as the market matures, more POS systems will enter the market and offer accommodation, with better integrations with high-risk processing or more compliant features over time. Therefore, Shopify is on the right path to being one of the most enticing options for the CBD retailer seeking an all-in-one system for selling and inventory/crm[5]. Therefore, integrating Shopify’s POS system with its suggested high-risk merchant account services will allow CBD retailers to work faster and confidently scale while providing customers with a better experience.

FAQs

Q: What is point of sale on Shopify for CBD retailers?
A: The Shopify POS system is an in-store retail solution to sell products in-person and online with one inventory and sales and customer tracking solutions all in one place.

Q: Can CBD businesses use Shopify Payments?
A: No. CBD sales are not supported by Shopify Payments, meaning merchants must integrate with high-risk processors that specifically allow for CBD transactions.

Q: Why is Shopify a good POS provider for CBD?
A: Shopify provides a connected experience for in-person retail sales and online sales, inventory tracking, customer loyalty systems, and integration with high-risk payment processors.

Q: What are the downsides to using Shopify POS for CBD?
A: The biggest downsides are no support from Shopify payments, problematic sales by location, where a merchant is legally able to sell CBD, and connectivity with some third-party apps.

Q: Is Shopify POS a solution for the future of CBD retail?
A: Right now, it has many downsides, but with infrastructure support and general integrations, it appears that over time, with better compliance options, this may be the solution long term.

About the Author

Shawn Silver

Shawn Silver brings over 13 years of experience in the payment processing industry, having successfully founded and led multiple businesses in the space. With a track record of growing startups and driving innovation, Shawn’s leadership has consistently empowered merchants to thrive through robust payment solutions.

Shawn is committed to continuing his work in revolutionizing the payment industry, focusing on providing exceptional service and cutting-edge technology to businesses of all kinds. He earned his degree from the University of Massachusetts Boston and is passionate about leveraging his expertise to help clients navigate the complexities of payment processing.

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