The CBD consumer market is booming and it’s not hard to see why. As a non-intoxicating compound, CBD may help with anxious feelings, discomfort relief and so much more. If you are looking into becoming a retailer of CBD products, there are many things you should consider. Finding the right CBD distributor can be tricky. But considering all the factors, we will discuss in this article how you can easily find the right one.
The opportunity to sell hemp-derived CBD wholesale is a tempting one. CBD is in high demand, and businesses are rushing to get their hands on it. Between 2014 and 2018, the legal worldwide sales of cannabidiol (CBD) increased from $3.4 billion to $11 billion, according to Arcview Market Research.
One in seven Americans use some form of CBD products, according to a Gallup survey conducted in 2019. Being a CBD reseller has the potential to be a lucrative business because there are so many product choices, such as tinctures, vape oils, topical salves, gummies, softgels, capsules, lotions and more. According to BDSA forecast, consumer CBD products sales are going to hit $20.5 billion in 2025.
When we compare these figures to the amount of CBD sales recorded in 2018, around $663 million, it is apparent that the market is on a sharp incline. This means the sector expanded at a compound annual growth rate (CAGR) of 107 percent!
As the CBD industry expands, so does the potential for sellers. Making a profit by selling hemp-derived CBD wholesale is one way in. There are many options when it comes to finding CBD distributors, but not all of them are as great as they seem. We’ll discuss which factors to look for in a good distributor and how you can avoid ending up with the wrong CBD company.
How Does CBD Wholesaling Work?
If you’re looking for a way to get into the CBD industry, why not sell wholesale quantities of hemp-derived CBD products? CBD companies that specialize in CBD wholesale deal with big purchases, which are generally for e-commerce or brick-and-mortar stores.
CBD distributor possibilities are numerous, and you are not confined to a limited number of CBD products. Working as a middleman allows you to sell the product of your choice.
But if you’ve ever spent time in the trenches, producing high-quality oils similar to a manufacturer or hemp wholesaler, then you know it’s not as simple as some might think.
CBD wholesale businesses, on the other hand, sell to a variety of merchants and outlets for onward sale, while producers and suppliers focus on getting the products ready for buyers. Wholesalers profit from selling CBD in bulk at a lower unit price to the retailer since they do not have to invest time and money in preparing items for sale.
Before making a decision about which company would be best suited for your needs, you should take some considerations into account.
7 Considerations when buying from a CBD Distributor
1. Find the right CBD distributor for your needs.
2. Make sure they are licensed and in compliance with all regulations.
3. Ask about their quality control processes to make sure you are getting a safe product.
4. Ask about their customer service – how responsive are they to questions, complaints or feedback.
5. Check out reviews of other customers on sites like Yelp or Google Reviews.
6. Get recommendations from friends who use CBD products regularly.
7. Read up on what differentiates this company from others in the market so you can be confident in your purchase decision.
CBD Wholesale Checklist prior to entering the market
More people became interested in getting into the hemp-derived CBD industry following the passage of the 2018 Farm Bill, which federally legalized industrial hemp production across the United States. As a matter of fact, the legislation established the foundation for commercial production and sales of hemp-derived CBD products.
Industrial hemp must not contain more than 0.3 percent of the psychoactive cannabinoid THC on a dry-weight basis, as per the Farm Bill.
There are a few more things to think about before moving forward:
1. Partner with a premium CBD supplier
It will be difficult for you to sell your CBD products produced by a third party if you can’t trust the provider to create high-quality, non-contaminated hemp-derived CBD. Additionally, CBD distributors who offer the best quality CBD products will source their hemp ingredients from farms that produce hemp in accordance with the most stringent cultivation requirements.
Make sure your supplier doesn’t use pesticides or chemical fertilizers during hemp cultivation. Pesticides may help them produce bumper crops, but customers might face the harmful effects of these toxic chemicals.
2. Make sure your distributor is legally licensed to sell and manufacture CBD
Do you know where the raw hemp material came from? Is it from a legitimate farming facility? This isn’t something that should not be passed over by someone interested to enter the CBD industry.
Before you start selling CBD products wholesale, you must first inquire about these topics and check. If the CBD was not produced from an authorized hemp cultivator under proper regulations, you are probably buying, distributing and selling a black market product. This might expose your company and its investors to a variety of regulatory and legal issues, some of which may result in criminal penalties.
3. Is your supplier using third-party testing?
Keep an eye on third-party evaluations while looking for hemp-derived CBD distribution opportunities. Lab test results for each CBD production batch, including cannabinoid and terpene concentrations, should be compared to the product’s claims.
If you don’t know what you’re selling, it raises some serious concerns for your company. The CBD goods you resell may be illegal under the Farm Bill and state legislation if they contain too much THC relative to the amount of CBD. Another issue to consider is the presence of misleading or deceptive labeling. Contaminated goods may be dangerous to consumers’ health, or they may not adhere to your company’s or merchants’ quality requirements.
4. Consider how long your distributor has been in business
Look for reputable CBD suppliers with a track record of success. Suppliers who are not well established yet should not be totally avoided; however, before purchasing anything from them, do some background checks. Take into account things like how many sales they’ve made and whether or not their target market is the same as your own. Of course, what consumers have to say about them is an important consideration.
5. Are you looking forward to enter the CBD wholesale market?
If you want to stand out among the hundreds of hemp-derived CBD wholesale vendors, you must demonstrate your own unique selling proposition (USP).
Showcasing how your firm can make the process of obtaining legal, high-quality CBD products easier will set you apart from your competitors. Demonstrate how you can give access to new markets and verticals.
Keep a careful log of the places where you’re selling hemp-derived CBD products. This is critical, not only because some jurisdictions continue to prohibit the sale and possession of CBD products, but also as a result of federal legislation. If you don’t keep track of distribution, you and/or your company may be penalized with criminal penalties; bear this in mind if you want to break into the industry on a large scale.
6. Figure out why the CBD products you sourcing are better than your competitors
When you are looking for a CBD wholesaler, the best ones will be noted by carrying top-shelf brands. A premium quality CBD wholesale brand will always produce its CBD products using industrial hemp in a CGMP certified and FDA-registered manufacturing plant. Even better if your CBD was produced and tested by professionals, such as physicians and researchers.
7. Consider having industry-specific licenses/qualifications
Some jurisdictions require a license to handle hemp and/or hemp products. A special hemp processor license may be required in other states. Some states may also apply their existing food safety laws to CBD, which demand that facilities manufacturing hemp products, including CBD, and keeping them in storage be registered with the state’s department of health and operate in strict conformity with food safety standards.
Choosing the Right CBD Distributor
Finding a reliable supplier may be the most essential step in any successful wholesale CBD business. When it comes to selling a CBD product, you might want to consider trying it yourself first. Make sure your products are of high quality and convey the image you want to project. You as a wholesaler won’t look good if you offer low-quality goods, so don’t try to save money by cutting corners.
The U.S. Hemp Authority requires that a CBD supplier be approved and certified before allowing them to sell their products in the United States. The U.S. Hemp Authority’s certification program is a reliable way to identify trustworthy CBD distributors. Furthermore, a CBD distributor should be in accordance with FDA regulations.
In this article, we’ve discussed some factors that will make things easier for you when deciding on who to work with in hopes of eventually building a relationship with them and spreading awareness about their product line while helping them grow their CBD business as well.
CBD Hemp Experts is a market leader in the sale and distribution of cannabinoid products across the United States. As one of the top-notch CBD distributors, we have partnerships around the country. We can cater to the needs of wholesalers, suppliers, retailers and manufacturers. If you’re looking for wholesale or bulk CBD hemp products and supplies for your company, contact us today.