How to Start a CBD Wholesale Business
If you’ve been considering getting into the CBD wholesale business, there has never been a better time to begin than now. According to a report by BDS Analytics, by 2024 the U.S. CBD market will reach the $20 billion. This prediction is based on a 49% annual growth rate.
This growth can be attributed to people’s open-mindedness toward the benefits of CBD products. Many consumers now turn to CBD for pain and stress relief, among other purposes. Furthermore, as more sellers now offer their CBD products online, more customers are attracted to try the products.
The CBD industry offers a number of opportunities, one of which is wholesaling. CBD wholesalers cater to retailers and as such, handle bulk CBD products. As a wholesaler, you will essentially serve as the middleman between the source and the retailers. What’s great about wholesaling is that you will transact with business-minded people like you. Wholesaling also saves you the time and costs associated with marketing and selling products to end-customers.
Ready to get started? Here are some tips.
1. Find a reliable and licensed supplier.
The first step in CBD wholesaling is searching for reliable and licensed suppliers. It is necessary that you only get products from a manufacturer or supplier that offers high-quality and safe CBD. Find out if the supplier manufactures their own products. You should also investigate whether the products were derived from hemp plants that have been cultivated following the highest standards. You should also inquire whether the plant sources were organically farmed or not.
Additionally, it’s important to ensure that the supplier you deal with is licensed. If you get products from unlicensed farmers and manufacturers, you could get in trouble. You could face legal and regulatory violations.
2. Understand your would-be legal obligations.
As a CBD wholesaler, you will also have legal and regulatory obligations. You must remember that despite the legalization of hemp-derived products such as CBD oil, the industry remains a highly scrutinized one. The FDA continues to improve and develop CBD regulations, so it will help to always keep yourself up-to-date. It’s also best to keep your operations safe by only offering products widely sold on the market.
3. Find the best prices relative to quality.
Do not be attracted to low prices alone. Of course, finding low-priced products is good for business. However, cheap does not always equate to cost-efficient. Look for products that are high-quality yet competitively priced. To help you with this, ask quotes from multiple suppliers with an established reputation.
4. Plan how you will market your products.
When creating your business and marketing plan, you need to view it from a wholesaler perspective. Remember that you will market to business-owners and aspiring resellers. You must plan how will you reach them. Having a website is one way to establish your brand and showcase your products. But in addition, you must also think of ways to proactively reach out to potential partners.
5. Create a sell sheet.
A sell sheet is a one page sheet that explains to a potential retail store owner what you have to offer. A sell sheet has nice full color pictures, maybe from different angles. Description of products, name of company and other company details.
6. Create a terms sheet.
A terms sheet is used to make both parties life easier and will have Minimum order quantities, wholesale pricing, payment terms, ordering process, minimum retail price and even shipping information
CBD wholesaling can easily prove profitable as long as you plan and do it right. We hope that these tips can help you get started on the right path. If you need help with your CBD Wholesale business set up, scaling, compliance, etc. Check out our programs