CBD wholesale: Rookie mistakes to avoid

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Estimated reading time: 19 minutes

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Introduction

Over the last few years, the CBD industry has continued to experience great success. With demand skyrocketing, there's a huge need for CBD products with that said, it's no surprise that bulk and wholesale CBD sales are expected to reach 16 billion by 2025.

Enter the CBD market has lots of hurdles. As a European CBD distributor, we have learned the hard way!

We created this guide to help you along the way. To support starting entrepreneurs in the CBD industry. We aim to help people who are thinking about starting a CBD business with this article. We share our insider knowledge on how to avoid the biggest wholesale mistakes in the cannabidiol world. Let's go!

Introduction to the CBD Industry

There is no doubt that the thriving CBD sector is expanding and becoming more powerful by the day. Men and women all around the world are reaping the physical and mental advantages of hemp-derived cannabidiol products.

Between 2014 and 2018, legal global sales of cannabidiol, or CBD, soared, rising from 3.4 billion to 11 billion.

High-quality CBD oil is now available at wholesale costs in a wide range of products. For example, CBD Gummies, are available in a wide range of tastes, shapes, colors, and potencies. CBD tincture oil is incredibly strong, and wonderful topicals soothe the skin. Let's take a look at 5 of the best wholesale CBD firms and their products.

What exactly is CBD Wholesale?

Why not offer hemp-derived CBD wholesale if you're wondering how to get into the CBD business? Companies that specialize in this market will largely deal with bulk orders – usually for brick-and-mortar or internet stores.

Hemp-derived CBD distributor opportunities are endless, and you will not be limited to oils. Working as a middleman allows you to select the precise type of product you want to sell.

Growers and suppliers concentrate on getting the raw product ready for their customers. CBD wholesale companies sell to various retailers and outlets for resale. Wholesalers can bypass the effort and costs associated with preparing items for sale to end-users; by simply selling CBD in bulk to retailers at a reduced unit price.

Your Checklist for CBD Wholesale

It is legal for industrial hemp to be grown anywhere in the EU. Now more people are interested in how to start a business selling CBD made from hemp.

According to EU legislation, hemp can't have more than 0.2% of the psychoactive cannabinoid THC (tetrahydrocannabinol) by dry weight.

Keeping this in mind, here are some more things to check off your list:

Do you have a good vendor?

If you don't think you can trust the supplier to make high-quality CBD, don't expect to sell it easily. Farmers who grow hemp in accordance with the highest standards will give quality suppliers the hemp they need. Find out if your supplier uses pesticides and chemical fertilizers. These things may help crops grow well, but people could get sick from using products grown this way. Before you buy CBD, find out how much THC and CBD they have. Look for a good supplier with a good reputation for growing CBD-rich hemp strains.

Does your supplier have the right paperwork to make and sell CBD?

And does the hemp used to make the CBD come from a farmer who has a license? If you want to know how to get into the CBD business, you shouldn't skip over this point. When you buy CBD products in bulk, you must ask and confirm this question. If the CBD didn't come from a legally licensed manufacturer who got it from legally sourced hemp. You could be buying, distributing, and selling a product that is against the law. This could put your business, your investors, your employees, and even your customers at risk. The big risk of breaking a lot of rules and laws. Some of which could even lead to criminal penalties.

Does your supplier have tests done by a third party?

Pay attention to third-party testing when you are looking for ways to sell CBD that comes from hemp. Ask to see lab test results for every batch of CBD that is made. Look at the levels of cannabinoids and terpenes in the CBD product. If you don't do this, you won't know what you're selling, which is a big risk for your business.

The CBD products you sell may have too much THC and not enough CBD, which would make them illegal. Also, the labels might be wrong and mislead people; the products might have traces of solvents, pesticides, or metals that pose health risks to the end-user; or the products might not meet the standards of your business or retailers, making them useless. Also, smart retailers will almost always ask for information about how each batch was tested. Without testing results, you limit your market opportunities in a big way.

Has your supplier been in business for a long time?

Try to find CBD suppliers that have been around for a long time and have a good track record. You don't have to stay away from new suppliers, but you should do some research before buying anything from them. Think about how many sales they've made, and who they're trying to sell to. Furthermore of course, what their customers say about their business.

Do you have a plan for getting into the wholesale market for CBD?

If you want to stand out from the sea of wholesale sellers of CBD, you have to prove it. If you can show how your company can make it easier to get high-quality CBD from legal sources; you will have a chance to stand out. Show how you can help people get to markets. Make sure you keep track of where your CBD products made from hemp are going. This is important because, among other things, some states still make it illegal to own or sell CBD products. If you don't keep an eye on distribution, your company and its stakeholders could face criminal charges. Keep this in mind if you want to break into the market on a large scale.

What's better about your CBD

A CBD wholesale company that sells the best brands will stand out. A lot more than one that sells brands that are unknown or not as popular. High-quality industrial hemp will be used to make CBD products in a facility that is FDA-registered and CGMP-certified. Even better is if your CBD was made and tested by experts in the field, doctors, and scientists.

Do you have licenses or qualifications that are specific to hemp?

In some states, you need a hemp handler's license to have hemp or hemp products or to sell them. In some states, you may need a special license to process hemp. Some states may also have rules about CBD based on their food safety laws. This means that places where hemp products, like CBD, are made and sold must be registered and follow all food safety laws and rules.

CBD Business information

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How to Find Your CBD Niche

Just like in any other business, one of the most important things to think about when getting into CBD wholesale centers near points of distribution is how many stores carry the product. There are many business-to-consumer (B2C) stores that sell CBD products. Using their resources to their fullest potential will make sure that your stock is always in high demand.

The following business-to-consumer (B2C) stores have a specific customer base and will be looking for CBD wholesale experts when they need to restock.

1. Head shops.
   Head shops grew out of the hippie scene in the late 1960s, which is where cannabis culture got its start. This kind of store specializes in selling pot accessories that are made to be used in groups.

Advantages:

If you sell wholesale CBD products online, you should talk to these kinds of stores. In most big cities, head shops are spread out and have a loyal group of regular customers.

Challenges:

Adults who use cannabis like to go to head shops. This means that people who use CBD may not stick to them. Some head shops may also find it hard to match the quality of other stores.

2. Online retailers.
   This year, the number of people who shop online is expected to reach 2 billion, and by 2021, that number is expected to reach 2.14 billion. Since so many people buy things online, it would be a shame not to take advantage of what online retailers have to offer. Brick-and-mortar stores require a lot more infrastructure than online stores. Also, since 4.39 billion people use the internet as of 2019, the customer base is much bigger than with any other option.

Challenges:

Because there are so many customers, it can be hard to get in touch with online retailers. Also, most online markets are pretty full.

3. Retail specialty stores.
   Specialty stores serve a certain type of customer. Naming vape shops, smoke shops, health and wellness stores, and nutrition stores; are all great examples of specialty stores that would be happy to sell CBD products.

Advantages:

You can find these kinds of stores in most cities and states, which makes them easy to find and contact. Because they are close to home and only sell high-quality products, they tend to have a loyal customer base.

Challenges:

Like dispensaries, specialty stores will look too closely at what they sell. This means that if you want to sell CBD wholesale to this kind of store, you'll need to choose the best products. Prices are usually higher than in head shops or dispensaries, so you'll need higher margins to stay in business.

Choosing CBD Items to Sell

Choose the CBD wholesale products you want to sell based on the market you want to reach. Do you want to get the attention of people who are interested in health? -or people who want to try CBD for the first time?

You could also sell CBD in bulk to stores whose customers want to use CBD to take care of their skin. No matter the reason, make sure that the people you want to reach are likely to go to the place(s) where you sell your products. Here are the main areas of interest for people who use CBD.

CBD Oils.

By 2023, the market for CBD oil around the world is expected to be worth 23.7 billion. Oils, which can be taken as a tincture, are easy to use and don't stand out.

Hemp-infused Edibles.

Even though edibles and gummies may take longer to start working, their effects tend to last longer. This part of the CBD market has grown because there are so many different ways to use edibles, like all the different flavors. By 2022, the market for foods with CBD in them is expected to be worth 4.1 billion this year.

Drinks.

Another part of the CBD market where you might be able to make money is with drinks. Scientists and people who make products have figured out how to put CBD into water, and there are even CBD powders that dissolve in water. Analysts say this is one of the areas of CBD retail that is growing the fastest. Between 2018 and 2023, the CBD beverages market will grow at a rate of 74.7 percent per year.

Skincare and creams.

CBD products that are used on the skin or as cosmetics are becoming more common, and large national retail chains often prefer these kinds of products. A report from Grand View Research, Inc. that came out in August 2019 says that the global CBD skin care market will grow to be worth 1.7 billion by 2025.

Vapes.

Even though there have been problems with contaminated vape products recently, this market is still doing very well. When you vape CBD oil, the cannabinoids hit your lungs hard, and the effects happen almost immediately.

Supplements.

CBD-filled capsules and supplements can be taken on the go, at home, or even right before going to the gym. The health and wellness market segment includes this part of the market. Keep in mind that in many countries it is against the law to sell CBD as a dietary supplement or in one.

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More from our blog

• How to find your CBD wholesale product and producer!
• CBD Wholesale Europe: The complete guide for 2021
• Why 99% of CBD drop shippers fail miserably and how you can avoid this
• CBD Wholesale vs. CBD Whitelabel vs. CBD Drop Shipping vs. CBD Affiliate
• Best CBD Wholesale and Affiliate program

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Discover our most popular products

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Build a website that fits your CBD story

If a store wants to buy CBD made from hemp in bulk from you; they need to know that you take what you do seriously. In the same way that customers look for sellers they can trust online; a store will first look at how your services look online. Without a website, it will be hard to stand out from the crowd. Plus, 72 percent of e-commerce will happen on a mobile device by 2021. If you want to attract the right customers, you must have a website that works well on mobile devices.

In many European countries, but also in the United States and the United Kingdom, you can't promise that CBD can cure anything. So, let's find out what else is needed to get people to buy CBD in bulk.

Here is what you need to know about building a CBD store

• Make it look nice and simple to read. Putting in a little effort to make your CBD wholesale website look good from the point of view of a retailer will go a long way. Your professionalism will show if your website looks good and has all the information it needs. BigCommerce makes it easy, though. With our platform, you can choose from a wide range of visually appealing designs and themes to offer a more personalized experience and increase the chances of turning leads into sales.

• Show the results of the test. Don't forget to post online the results of third-party lab tests. This will help retailers make a smart choice about what to buy. If you don't look at third-party lab tests, a seller could say that their product has certain ingredients when it really doesn't.

• Point out brands. Retailers will want to know what kinds of CBD products they plan to sell in their stores and what brands they carry. Make sure you choose a CMS that enables you to make it easy for anyone to find their favorite CBD brands.

• If you can, include a price list. About 55% of people who visit a website only stay for 15 seconds before they get bored or move on to another site. So, you should give retailers the information they need in bite-sized pieces that are easy to understand.

Important!

One of the most important things for a retailer to know is the price because they have to think about their budget and profit margins before they can buy something. Either has a pricing sheet online or a PDF that can be downloaded that lists all of your products and how much each one cost.

Still, no matter how many opportunities this market gives you, you need to know what you're doing. Before you start a wholesale CBD business, there are many things you need to know. It's true that some strict laws from when hemp-based products were first put on the market are still in place. But that doesn't mean that CBD businesses have to stop doing what they do best, which is selling great products. They just need to know how to do it better.

How to Choose a CBD Wholesale Company: Mistakes to Avoid

Next, we'll talk about the first step, which is choosing the right CBD wholesale company to work with. You might think you could do this with your eyes closed, but that would be wrong and, to be honest, a dangerous assumption. You will actually have to put in a lot of work to make this choice since you want to find the best option for you and start working with the best CBD wholesale partner.

The whole idea behind the business you're starting is that you'll find the best company that lets you buy CBD products in bulk and form a partnership with them. They give you a discount on their products, which you then sell for a profit. Any way you look at it, it's up to you to find the best company, but it's easy to make mistakes when you're looking. Well, I'm here to help you avoid making those mistakes, and I'll do that by telling you about them and hoping you'll do your part and remember them so you don't make them again. These are them:

Check-list:

Getting into it too quickly.

I would have been happy if I didn't have to talk about this mistake because it should be obvious, but it seems that many people make it, which is why we should pay attention to it. In simple terms, one of the worst things you can do when choosing one of these companies is to make a decision without doing enough research. I know you might want to start your business right away, but you need a partner to do that.

If you act too quickly, you will probably end up hating yourself for it. If you don't do enough research on a company first, you won't be able to tell how well you'll work with it. Plus, you won't know for sure if their products will sell or if you're just going to waste your money on something that won't sell. So, do yourself a favor and look into all of your options and these companies before you make a decision.

Not Asking People What They Think of Their Products.

I briefly mentioned above that it would be good for you to know; if the products will actually sell before you decide to buy them. But the question is how to figure that out. Well, there are many ways to do it, but they all boil down to this. You need to find a way to find out what people who use CBD really think about certain products and brands. It's fine if not everyone likes a certain brand. however if most people don't like it, that should be your first warning sign.

Not Checking a Wholesale Partner's Reputation.

Checking how popular certain CBD products are is definitely something you should do. You can learn how to do this by finding out what mistakes to avoid when doing this. Checking the reputation of your possible CBD wholesale partners is also important. You basically want to know how well CBD companies work with their distributors and retailers. Then you know what to expect from them. So, do your research and find out what people say about them before going any further.

Choosing a distributor based on the price alone.

Everyone knows that wholesalers and retailers get CBD products at a discount. This is necessary for them to be able to do business at all. But the amount of the discount should be the only thing you use to decide which companies to work with. As we've already said, it's also important that the CBD is of good quality. It is also important that the wholesaler has a good name. In fact, those are the things you should pay the most attention to.

What do I do after finding a (White Label) CBD supplier?

When you think you've found a supplier you might want to work with, the next step is to get in touch with them. The best way to learn about a company is to talk to the people who work there. Ask things like, “What do you have that other vendor don't?” How can you be sure that your products are good and clean? Do you give discounts on orders that are a lot?

If you think you've found a supplier who will work well for you, you can apply for their program. Most of the time, all a supplier needs to know at first is a little bit about your business. Your intentions and your target market. After you've filled out the application, you need to plan and design your labels. Plan and figure out how much you need to order – be careful not to order too much of one kind; not before you know your market.

Learn more about our white-label CBD Wholesale program.

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10 Things NOT to Do when buying white-label CBD

If you want to start a successful CBD business, you need to know how to buy (white label) CBD. And that starts with knowing what to stay away from.

Here are ten mistakes that retailers often make when they buy white-label CBD from a wholesaler:

1. Assuming that all CBD products have no THC at all.
2. Not knowing ahead of time what the laws are in their state about CBD.
3. Not asking for an Analysis Certificate (CoA).
4. Not looking into where the hemp came from in the first place.
5. Not asking about how a company makes, extracts, and isolates its products.
6. Buying the white label CBD that costs the least on the market.
7. Not reading reviews from past clients.
8. Choosing a company that doesn't offer shipping and delivery.
9. Not asking about how a company handles customer service.
10. Choosing a business that doesn't have a wide enough range of products.

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