There’s never been a better time to get into the CBD wholesale business – as this wonder product takes the world by storm demand is expected to continue to increase. Experts in this field claim that by 2022 the CBD consumer sales market will be worth at least $2.5 billion!
If you are interested in wholesaling CBD oil keep reading to discover the key things you need to know.
Check out the legal issues
Some states require wholesalers to have a special license before they can resell products.
Check the CBD oil you source is legal to be sold online or in stores. (It should contain less than 0.3% THC.)
Where is your target market?
The two main ways to wholesale CBD oil on a smaller scale is to supply independent sellers who run either an online or physical store. Owners of both are a good prospect because they are keen to access a guaranteed supply of quality CBD oil without having to spend their own time looking for it.
Online CBD sellers
Online stores are easy to set up and cheaper to run than a physical store, and with the right approach can do very well. If you are supplying CBD oil it is wisest to begin with a no-credit account agreement, as the risk of not being paid on time, or at all should the business fail, is always higher with new outlets.
Retail store sellers
As a retail space is a bigger financial commitment than a website the people who run them are likely to be more committed to the long term success of their business, and possibly also be more knowledgeable about all aspects of CBD oil.
Questions sellers may ask
Where is the CBD oil being sourced from?
This is key to the quality of the finished product, so it pays to focus only on working with experienced farmers based in the US or Europe, who have a long history of growing good quality hemp.
How is the oil extracted?
If your growers use chemicals in the process the CBD oil won’t be of as high quality as you may want. It’s wiser to stick with those who favor the CO2 extraction method. This is lengthier and more complicated so may mean higher prices but it’s worth it to get a safe and clean end product.
Can you provide a COA [certificate of analysis]?
Decent sellers who have some knowledge of the CBD oil business will be looking for this. A COA is a report which shows the levels of THC, CBD and any other compounds which are present.
Other things to think about
Don’t make claims about the medical benefits of your CBD oil, and if possible include the FDA’s official disclaimer on your wholesaling website. This is important to stay within the legal boundaries of selling CBD oil.
• Don’t price your product too low. Most retailers are suspicious of cheap CBD oil anyhow, as they appreciate the time and effort which makes a decent product more expensive.