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Shopify Dietary Supplement answer ignores Shopify supplement reality, why is that?

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Shopify Dietary Supplement answer ignores Shopify supplement reality, why is that?

PaulVIETALITY
New Member
7 0 0

Hi Shopify community.

 

Question (which I posted yesterday and received the canned response)

 

Why does the Shopify Dietary Supplement answer ignore the Shopify Supplement reality?

 

The question was can I start a new dietary supp business with Shop payments? 

The answer was, "we're not lawyers but, no of course not, 'pseudo-pharmaceuticals' are verboten unless/until the FDA (lol, good one) approves them/

 

The reality:

 

While I'm not a lawyer either, few potential holes in your answer, of course. Notably would be the scores of stores selling what would appear to be far from 'pseudo' profits for you and them nor -pseudo-satisfaction for the millions of buyers. Their existence I suppose trumps my question. Unless you're suggesting that the supplement industry is akin to religion existing without a shred of science yet demands loyalty? Forget the studies that support supplements, reference one that doesn't. Other than the FDA naturally.

 

Curiously, would Harvard Health, the NHIH (National Institutes of Health.gov) or more digitally-centric, WEBMD and the legions of actual MD's who vocally concur with the myriad of studies proving and endorsing what the actual-pharmaceutical industry would never do? Which is to say, accept that a millennia's worth of data and billions of people who use and rely on such natural substances with nary a lethal side effect cannot possibly be wrong? Remedies which of course cannot be patented such as Ashwagandha, brown seaweed, Chromium, Glucomannan, Saffron, Vitamin's D, B, K, Zinc etc and therefore cannot be justified in spending one billion dollars to patent a drug we can buy at the local CVS?

 

Or, judging by the volume of shopify supplement stores should we just assume 'if we don't start no trouble then we won't have no trouble'? And everyone just buys, sells and facilitates transactions of consenting products between consenting adults?

 

How do you reconcile your answer given the stores that sell supplements? Or is it akin to the US marijuana policy which is State-approved in all it's pseudo-glory yet Federally criminal and hence shopify's official legal position? In that light, shouldn't your answer end in a 'wink'?

 

Shouldn't shopify's response be more akin to FDA labeling requirements which are wholly and unilaterally label-based re claims and supported studies? Does Ashwagandha 'support' stress relief? Or will Ashwagandha make you 'stress-free'? Two very different claims. One is supported by virtually every Doctor on the planet. The other is fraudulent.

 

It's 2024 yet that answer seems like it's from the dark ages. The planet, its population and science are all evolving except for the acceptance of the supplement industry by the very gate-keepers who will never profit from it and worse will erode their iron grip on 'out-curing' it so why should they approve it? I don't imagine I'd be in a rush to approve saffron for anything other than paella if I was in big pharma, would you?  Yes there are bad actors who promote bad products which are harmful to one's health so shouldn't shopify approval be formula or clinically-proven on a case by case basis? It takes more work but I think you'll find the people who seek alternative help and treatment as compliment to traditional medicine and who come to shopify for accessible answers are worth it.

 

It would seem to me that the pseudo-pharma industry exists in a black hole where bc drug co.'s will never approve drugs they can't sell and hence the FDA will never bother acknowledging a formula the drugs co.'s don't need them to, then when will the supplement industry ever evolve for the people who rely on affordable, efficient, safe access to clinically-proven supplements? And on those great co.'s who make access to such hope at the tips of their fingers? Obviously we need you more than you need us but they need us also. 

 

Just a thought,

Accepted Solution (1)

StephensWorld
Shopify Partner
1401 174 389

This is an accepted solution.

My understanding (and I could be completely wrong, so take this with a grain of salt) ... is that it's less of a 'legal' issue and more of a 'risk management' tactic used by Stripe (which powers Shopify Payments). Dietary supplements have an above-average rate of chargebacks (which is really bad for payment gateways/operators) so those sort of products/businesses aren't supported. Legal issues aside, the problem with supplements is that even if they're "FDA approved" (or "backed by real science & studies"), you will still have a number of people that purchase them, claim they did nothing, and then file chargebacks. For that reason, many payment gateways don't want their merchants to be selling these kinds of products. 

 

You can definitely try to use Shopify Payments for your supplement business, but it'll probably be flagged and turned off pretty quickly (so you may as well just use a payment gateway that supports those kinds of products from the start, so that there's no downtime for your customers). 

★ Did my post help? If yes, then please like and accept solution. ★

https://stephens.world
support@stephensworld.ca

View solution in original post

Replies 7 (7)

StephensWorld
Shopify Partner
1401 174 389

This is an accepted solution.

My understanding (and I could be completely wrong, so take this with a grain of salt) ... is that it's less of a 'legal' issue and more of a 'risk management' tactic used by Stripe (which powers Shopify Payments). Dietary supplements have an above-average rate of chargebacks (which is really bad for payment gateways/operators) so those sort of products/businesses aren't supported. Legal issues aside, the problem with supplements is that even if they're "FDA approved" (or "backed by real science & studies"), you will still have a number of people that purchase them, claim they did nothing, and then file chargebacks. For that reason, many payment gateways don't want their merchants to be selling these kinds of products. 

 

You can definitely try to use Shopify Payments for your supplement business, but it'll probably be flagged and turned off pretty quickly (so you may as well just use a payment gateway that supports those kinds of products from the start, so that there's no downtime for your customers). 

★ Did my post help? If yes, then please like and accept solution. ★

https://stephens.world
support@stephensworld.ca

PaulVIETALITY
New Member
7 0 0

Thank you very much for an actual, practical, real-world response that merchants can actually use to make business decisions that naturally Shopify, its merchants and consumers benefit from. Not sure who posted the gibberish answers before but what is sure is they have zero clue about Shopify or the people who use the platform. Grain of salt taken...........along with a shot of tequila and a squeeze of lemon. Cheers. 

mactheknife
Visitor
1 0 0

I am bemused by the whole thread.  Loads of supplement companies are on Shopify.  And some pretty big ones.  They use Shopify Payments and Shop pay. 

Paul - I think you are asking the wrong question and getting a  legal reply.  You are not asking if you can sell "pseudo-pharmaceuticals" - so the reply does not apply to you.  You are not going to make false claims or not comply with local or national regulations regarding Dietary Supplements. 

I do remember WorldPay not letting us make guarantees and you have to be careful with health claims.  But, Paul, you seem to have that covered. 

As you note, many people run Dietary Supplement businesses on Shopify with Shop pay. 

 

Skye was right to point out that you are fine if you do not break the rules in the policies, which she linked.   You can sell anything you like, but do not break the rules. 

You are entering a bit of a minefield, but I have always looked at everyone else.  If everyone else is doing it, they cannot just stop you.  Don't cross the line. 

 

Here shows there are 27,000 Dietary Supplement stores on Shopify. 

 

 

Beth14
New Member
4 0 0

The original question is the same one that I have.  I have been selling on Shopify for 4 years with a great track record and no returns/chargebacks worth mentioning.  When does Shopify recognize this and allow me to get Shopify Payments (Stripe)?  They use the stupid excuse that we are selling "pseudo-pharmaceuticals".  There is no such thing in the dictionary and no definition for that.  I see that my biggest competitor who sells the exact same products that I do (in fact they are selling some products OTC that are prescription-only), and they have been arroved for Shopify Payments.  Isn't this a legal case for discrimination?

PaulVIETALITY
New Member
7 0 0
First off, congratulations on your success. Secondly, I'm in process of
setting up my store via 3rd party merchant services and the fees are
essentially the same at 2.9% + $0.25 per transaction. I doubt the cost
difference or ease of switching to Stripe will make a material difference
to your bottom line.

Shopify is too big to care. "Pseudo-pharmaceuticals" is funny bc it is the
party line from employees who have no clue what they're even talking about.

Given you're selling with no cbacks, impressive, I'd focus on doing what
you're doing bc your payment processor won't help you grow unless your
declines are up, which doesn't seem to be the case.

Good luck and good for you,
Beth14
New Member
4 0 0
Hi Paul: thanks for your kind words of support. I have used Authorize.net instead of Shopify Payments and they are fine.

But, FYI, there are several things that we are denied because we cannot use that payment service:

1.
Cannot have an integrated subscription/purchase checkout function on the website
2.
Cannot use the "Shop" app to process payments
3.
Cannot get a "working capital" loan
4.
Cannot process draft phone orders for repeat buyers in the Shopify store, which used to be available and SO MUCH EASIER TO USE, but they took that away a few months ago. So now I need to enter these orders in the store checkout process like any other customer

And there may be other things that I am not even aware of.
PaulVIETALITY
New Member
7 0 0
Hi Beth,

I'm using Authorize as well.

I notice a few subscription apps such as Subify or Sub Plus, have you
considered, as will most things Shop, an app to handle seamless
subscriptions?

I'd be surprised if you couldn't get a working cap loan given how saturated
that market is but I'll take your word on that.

Manual draft orders must be a pain given Shop was fine with them up until
recently. I'd bet a work around will present itself, again by a 3rd party
app, which seems to be what Shop counts on. They remove services knowing
full well others will offer them if demand is there which I'm sure it is.

I wish I could help you more, Beth, but you seem to have a firm grasp on
things to date. You notice in real time the changes and it's tough keeping
up with them I'll agree.

🙂