The hemp and cannabis industry, especially its CBD sector is growing rapidly and becoming really competitive. The business has several potentials which have spurred a lot of people to launch a wholesale CBD business. Although the industry has its peculiar challenges, the opportunities are significant.
Despite the fact that many people are setting up CBD businesses, you can make yours stand out. This can be achieved by working with a premium supplier who will give you access to one of the best brands of CBD products that are available in the market. However, there are some basics that you need to know before investing all that money into becoming a CBD wholesaler.
Steps to Take When Starting a CBD Business
Starting a CBD business can be overwhelming, but we will discuss the steps you can take when starting out.
1. Understand the Legal Obligations
The 2018 Farm Bill federally legalized cannabis and its extracts such as CBD oil. This implies that buying and selling of industrial cannabis has become legal. However, the product must contain THC of less than .3%.
Although CBD has been legalized, some regulations are still being devised by the FDA. Hence, understanding the legal obligations involved in the business will help you play safe.
2. Opt for Full Spectrum CBD
If you want to make good profit from selling CBD wholesale, opt for full spectrum CBD which is also referred to as broad spectrum CBD. It contains a lot of non-intoxicating flavonoids, terpenes, and cannabinoids. There are different CBD products you can sell wholesale such as CBD oil, CBD concentrates, vaping CDB, gummies, and so on. But you do not want to be a “Jack of all trade, master of none.”
You have to decide on the product you want to stock. You can ask a trusted CBD merchant if you need more help with selecting a product.
3. Buy Only Laboratory Tested CBD Products
Ensure that the products you are purchasing can be verified. You have to check the third-party laboratory test results to see what the product contains. If a particular brand refuses to disclose its lab results, then the safety of their product is questionable.
4. Look Out for the Best Wholesale Prices
Since you will be buying in bulk, you need to look out for the best wholesale price. If the CBD merchant refuses to sell to you at a considerable price, it means they just want to make quick cash and are not bothered about a long-term relationship.
As a result, you need to consider who your potential customers are and what they can afford. This will help you determine your cost price and selling price. If your cost price is too high, it will reflect in your selling price and you need your customers to keep coming back.
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5. Stay Ahead of the Competition
The cannabis industry is quite competitive and if you want to stand out, you have to stay ahead of your competition. You need to prove to your customers that you are efficient. Ensure that your products are always in stock. You can also offer free shipping and if your shipment arrives in good time, your first-time customers will be converted into returning customers.
As a wholesaler, your ability to make quick turnover and how you satisfy your customers will keep you in the CBD business. Besides, you need to bear in mind that customers love it when you ship products to them for free.
6. Promote Your Products
Your product will not sell if people do not know about it. Therefore, you need to identify who your potential customers are and where you can find them. If they are spending more time on social media platforms, then you have to channel your marketing strategies towards that direction. You can also partner with CBD merchants to find customers for your wholesale CBD business.
Find useful information on how to promote your CBD products here.
Following the legalization of CBD, more people are realizing the huge potential in the industry. We have discussed the steps you need to take when starting a CBD business. It is now time to launch out and build a business that will stand the test of time. There are several CBD wholesalers out there, but you can stand out by selecting a premium product.