As a convenience store owner, you’re constantly looking for ways to better serve your customers, including adding new products to your convenience store inventory list.
One product you might be considering is kratom, an herbal substance that can legally mimic the feelings and effects of some opioids. However, just because the substance is legal doesn’t mean you can just stick it on your shelf.
This article shares more about what kratom is, why people use it, and the rules and regulations that must be followed to sell it legally.
How To Legally Sell Kratom: The Basics
Kratom has been gaining popularity in recent years, but many people are still unfamiliar with what it is and why people use it. Before we dive into the legal aspects of selling kratom, let's first understand the basics.
What exactly is kratom? Kratom comes from the leaves of a tropical evergreen tree called Mitragyna speciosa, native to Southeast Asia. The leaves of the kratom tree contain alkaloids mitragynine and 7-hydroxy mitragynine, which interact with opioid receptors in the brain. Kratom leaves are typically crushed into a powder form and can be eaten or brewed.
People use kratom for several reasons, including:
- Pain relief from a natural plant alternative
- To decrease withdrawal symptoms from alcohol, opioids, or other addictive substances
- To improve mood and reduce anxiety through calming effects
- To boost energy levels to combat fatigue
- To enhance concentration and focus
- To manage cravings for other substances
However, selling kratom isn’t as simple as grabbing some from one of your distributors and sticking it on your shelves. Similar to CBD products, you need to obtain licenses and be aware of the regulations surrounding how to sell kratom legally. This is where your point of sale (POS) system plays a crucial role.
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A robust POS system designed for high-risk sales can help you monitor inventory, sales data, taxes, compliance rules, age restrictions, and more. By having a centralized system that tracks all these aspects, you can ensure that you operate legally, minimizing the risk of non-compliance.
It's important to note that kratom's legal status is relatively new, and regulations are constantly evolving at the local, state, federal, and even international levels. As a seller, you must stay informed about the latest developments in your state and locality and adapt your business practices accordingly.
In the next section, we'll discuss the specific steps you can take to legally sell kratom and how a purpose-built POS system like C-Store POS can help you navigate this complex landscape.
How To Legally Sell Kratom: Federal and State Requirements
Offering kratom in your store can help you tap into a potentially lucrative market. However, navigating the legal landscape of selling products like these can be challenging to say the least. Regulations vary at both the state and federal levels and are still in flux, meaning they are still changing in many places.
Let’s examine the current federal landscape for selling kratom.
First, it’s important to note that kratom is not currently scheduled as a controlled substance under the Controlled Substances Act. In 2016, the Drug Enforcement Administration (DEA) attempted to ban kratom's main alkaloids but was unsuccessful due to public outcry and congressional intervention. Since then, the Food and Drug Administration (FDA) has issued warnings about the potential risks associated with kratom use but does not control its scheduling. While kratom remains federally legal, future FDA manufacturing regulations could impact sellers.
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Though there aren’t solid federal regulations regarding kratom sales, many states do have such laws and regulations. Let’s examine a few state kratom regulations.
State laws regarding kratom are a complex mix, ranging from complete bans to fully permissive regulations. All sellers must comply with their specific state and city laws concerning kratom. Review your state’s laws and regulations carefully before deciding to sell kratom.
As of writing this post, kratom is fully banned in Alabama, Arkansas, Indiana, Rhode Island, Vermont, and Wisconsin. Some states, such as California, Nevada, and Texas, have legalized kratom with age restrictions.
Additional regulations in legal states may include:
- Mandated labeling of ingredients
- Required disclaimers
- Restrictions on health claims
- Quality testing requirements
- Warning labels about risks, interactions, and abuse potential
To ensure compliance with federal and state regulations, convenience store owners should stay informed about the latest developments in kratom legislation at both the federal and state levels. You may want to consult a legal expert to guide you through the process and ensure you don’t misstep. You’ll also want to implement a robust compliance program, including age verification, proper labeling, and employee training.
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By taking a proactive approach to compliance and staying informed about the evolving legal landscape, convenience store owners can confidently navigate the complexities of selling kratom while minimizing their legal risks
3 Kratom Sales Licensing Requirements
Selling kratom legally requires obtaining the appropriate licenses and permits, which can vary depending on your location and the nature of your business. Here are three key licensing requirements convenience store owners should be aware of when selling kratom.
1. Business/Seller's License
First and foremost, you’ll need a business or seller’s license. Most states require all businesses to register for a seller’s license. Chances are, if you’re already open for business, you already have one of these. You may also have a business license, which may also be required at the city level.
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These business licenses allow companies to collect, report, and remit sales taxes. You may need a different type of license if your business is considered a wholesaler versus a retailer. You may also need to explore temporary vendor licenses if you operate a booth or pop-up shop at local events or farmers' markets.
To obtain a business or seller's license, convenience store owners should contact their state's Department of Revenue or Taxation and inquire about the specific requirements for their location and business type. Failing to obtain the proper licenses can result in fines, penalties, and even the closure of your business.
2. Food Manufacturing/Handling Licenses
This one may seem a bit puzzling on its face. However, in many areas, kratom products are regulated as dietary supplements, meaning sellers must follow state and federal food safety rules.
Requirements vary widely by jurisdiction and may include:
- Local food handling permits
- Good Manufacturing Practices (GMP) certifications
- Facility registrations
If you plan on manufacturing, packaging, labeling, and storing kratom products onsite, these actions may trigger additional quality control regulations.
Convenience store owners should research the specific food safety requirements in their area and ensure they comply with all applicable regulations. Working with reputable suppliers who adhere to strict quality control standards can help minimize your risk of non-compliance.
3. Import Licenses
Finally, you must consider import licenses. As most raw kratom is sourced overseas, import licenses are necessary for international purchasing from approved government vendors. Import Permits from the FDA require documentation on product safety, purpose of your product stock, and projected sales and transit volumes.
Customs brokers can help you navigate regulations for legally importing shipments, ensuring all documentation is appropriately filed at the port of entry. Inadequate compliance with import laws could lead to cargo seizures and lost product.
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If you plan to import kratom directly from international suppliers, it's essential to work with experienced customs brokers and ensure that you have all the necessary permits and documentation in place. Failure to comply with import regulations can result in significant financial losses and legal consequences.
How To Legally Sell Kratom: Next Steps
With kratom's legal status being relatively new, licenses and regulations are constantly evolving across local, state, federal, and international importing laws. As a prospective seller, it's your responsibility to stay up to date and adhere to all applicable rules to serve your customers effectively and legally.
One way to ensure compliance is by implementing a point of sale system designed specifically for high-risk sales. A proper POS system provides systematic safeguards to help you stay legally compliant by centralizing sales data, tracking inventory end-to-end, integrating age verification procedures, and automatically applying the complex tax rules surrounding kratom at checkout.
If you're searching for a point of sale solution tailored to the unique needs of convenience stores, C-Store POS might be the perfect fit. With essential features like flexible payment options, integrated dual pricing, and advanced inventory management, C-Store POS equips you with everything you need to run your convenience store, while also helping you navigate the complexities of selling kratom and other high-risk products.
Don't let the challenges of selling kratom hold you back from expanding your convenience store's offerings. Schedule a demo of C-Store POS today to see how our solution can help you confidently enter the kratom market this year.
