The business of selling cannabidiol products at wholesale is quite appealing, as they are in high demand. The industry witnessed an increase in legal sales from 3.4 billion dollars to 11 billion dollars between 2014 and 2018.
In fact, 1 in 7 Americans is a cannabidiol user. Since this figure is sure to increase as can be seen here, reselling CBD therefore has the potential of being a profitable business.
What is Cannabidiol Wholesaling?
It simply means buying cannabidiol products in bulk from the manufacturers. Many companies offer opportunities for people to become distributors of their brands. Now, these opportunities do not limit you to just CBD oil. As a middleman, you can select specific products you want to sell.
So, while the hemp growers and manufacturers focus on supplying the product, CBD wholesalers sell to different outlets and retailers for onward sales. Also, since you do not directly prepare the products for end-users, you will save a lot of time and money.
Are you still wondering the type of product to sell? Well, you may consider CBD gummies. They are a fast-growing option among users and are very versatile. You can choose to either sell online or in a physical shop.
The Cannabidiol Wholesale Checklist
In 2018, the Farm Bill legalized the production of hemp across the United States of America. As a result, more people ventured into the CBD business. The bill clearly stated the basis for producing and selling cannabidiol products.
Under the bill, hemp products must not contain more than .3 percent of tetrahydrocannabinol (THC), a psychoactive cannabinoid. This concentration is measured based on dry weight. Therefore, there are things you must know before venturing into CBD wholesale. They include the following:
1. Choose a High-Quality Brand
Top quality brands source hemp from farmers who follow high cultivation standards. Find out if they use inorganic fertilizers and pesticides before buying from any manufacturer; they may be useful for high hemp yield but can harm the consumers.
This further explains the need to buy from brands that source their hemp in the States. At least, you can trace the farm to make your findings. In the end, if you are not confident that the brand produces uncontaminated cannabidiol, it is better not to buy because you will find it difficult to sell.
2. Choose a Licensed Company that Source Hemp from Licensed Farmers
If you are keen on penetrating the CBD market, you must consider this point. You cannot skip it because you must verify the company’s license before purchasing. Now, if the hemp was illegally sourced but the company is licensed, the product is illegal.
Selling illegal CBD products exposes your business, investors, employees, and customers to different legal and regulatory violations. And some may involve criminal sanctions. Therefore, ensure that you are buying and distributing a legal product.
3. Request Third-Party Test Results
When hunting for companies that offer distribution opportunities, take note of third-party test results. You can request these results for any batch of products you want to purchase. You should observe the concentration of terpenes and cannabinoids in them.
If you do not get the test results, you won’t know what you’re selling. This creates a big risk for you and your business because the product may contain less CBD and more THC, making it illegal under the state law and the 2018 Farm Bill.
Furthermore, it is important to read the labels as they may convey wrong information and mislead your customers. CBD gummies contain only organic products. Therefore, those that contain traces of metals, pesticides, or solvents expose the end-users to potential health risks.
Also, if the products do not meet your specifications or those of your retailers, they won’t be useful. Some retailers usually request specific batch testing information. And without the results, your opportunities to sell to a large market become limited.
4. Find Out the Manufacturer’s Experience
You need to find out the manufacturer’s experience in the business. The company you choose should have an excellent track record. Also, consider their sales volume per annum, target market, and customer reviews.
However, this does not mean that you should completely avoid new companies. Some of them may have gained experience by working for another company. But they should be able to prove this before you can buy from them.
5. Get the Certifications or License to Sell Hemp Products
Before you sell, find out if your state requires a license for you to distribute or possess hemp and hemp products. Some states require handlers to hold a special processor license while others regulate CBD as part of their laws guiding food safety.
Such laws involve the registration of facilities where CBD and other hemp products are distributed, stored, or produced. The registration is done in the health department of the state, which means that your business must comply with the food safety regulations and laws.
You can check out https://www.ncsl.org/research/agriculture-and-rural-development/state-industrial-hemp-statutes.aspx to know the requirements for each state.
6. Plan to Outdo Your Competitors
A cannabidiol wholesale business that sells the best or well-known brands will outdo those that stock less favored or unknown brands. You can check if the products are registered with the FDA and if they have CGMP (Current Good Manufacturing Practice) certification. Also, if the products were tested by experts in the industry, scientists, and doctors, you will probably stand out in the market.
CBD business is quite a lucrative one judging from the increase in CBD users and the benefits they gain from using the products. Also, choosing to sell CBD gummies gives you access to a large market because they are tastier than other CBD products. But, before you invest in the business, ensure you tick off the points shared in this article.