If you are an entrepreneur and are keen to get into the CBD industry before it is too late, you need to ally yourself with a top-class distributor. In March 2019, Market Study Report, LLC, released details of its investigation into the CBD market. It determined that the global market size will exceed $3.8 billion by 2025; an enormous increase on the 2018 figure of $270 million.
As a result of this growth, hundreds of CBD companies have sprung up seemingly overnight. If you are dipping your toe into these crowded waters, you need to have the best CBD product. This is only possible if you can team up with a reputable wholesale partner; something that is easier said than done.
To help you stay on top, we have comprised a list of five things you should look into before investing in wholesale CBD.
1 – What Kind of Product is the Wholesaler Offering?
The U.S. Farm Bill of 2018 has legalized industrial hemp farming; primarily because hemp contains less than 0.3% THC which makes it legal. When buying CBD from a wholesaler, you need to know the following information:
Is it Free From THC?
CBD products containing 0.3% THC are federally illegal and also illegal in states with no medicinal marijuana laws. If you sell CBD oil with an excess amount of THC, you are possibly breaking the law, and your customers could become ‘high.’ This becomes a major problem if they lose their job because they tested positive on a company drug screen, or if they are involved in an accident because of the effects of your products.
What About Pesticides?
All CBD products should come from organically grown hemp. If there any pesticides or insecticides are used, don’t even think about making the purchase.
Full Spectrum is the Gold Standard
Also known as broad spectrum, it means that the product contains numerous non-intoxicating cannabinoids, along with terpenes and flavonoids. Research suggests that products with cannabinoids and terpenes working together are more effective than CBD alone; a phenomenon known as the ‘entourage effect.’ Make sure the products contain CBG, CBN, CBC, and CBDA, along with terpenes such as Linalool and Alpha-Pinene.
2 –Third-Party Lab Reports Are Essential
The only way you can be 100% certain that the CBD products meet the standards above is to view third-party lab reports. You’ll notice that most reputable CBD sellers include lab reports with every batch of products. If the wholesaler’s website doesn’t show evidence in the form of third-party lab reports, be very wary. It is an expensive process but a necessary one to provide a cast-iron guarantee of quality.
3 – Consider Pricing & Selection of CBD Products
Certain wholesalers claim to offer a wide range of products but don’t offer a particularly great deal when it comes to purchasing in bulk. Such organizations have a very short-term view of business and are usually only looking to make a quick buck. If you use such a firm as a partner, you will probably pay thousands of dollars more than you need to.
It is also crucial to take a closer look at what the wholesaler offers and make sure it is aligned with the needs of your target market. The most successful CBD sellers offer a wide range of products at a variety of price points. If you are just starting, it is a good idea to minimize the number of 2,000mg+ CBD products because few customers can afford to pay for them.
The type of product also matters. The majority of consumers look for CBD oils, edibles, vape juices, and balms. If you are looking to specialize in weird and wonderful items, go for it! Just remember that leftfield items such as CBD spice may not sell as well as you would hope. When in doubt, stick with a wholesaler that offers mainstream, friendly products.
As far as pricing goes, it is usually on a scale. This means the percentage of what you get off the shelf price is directly related to the amount you purchase. There are a few CBD wholesalers that offer a huge 50% discount. Therefore, if a wholesaler offers 15-20% off, you are better off walking away because you’re likely to get a far better deal elsewhere.
4 – Look for Fast Shipping
As a CBD seller, you need to receive your goods as fast as possible because your entire business depends on quick resale. Imagine a situation where your customers order 100 bottles of CBD oil between them, and you have nothing in stock. To make matters worse, your wholesaler has delayed sending you the items. You will have a lot of angry customers who are unlikely to return to your store.
Typically, it should take a few days for a wholesaler to send you the items. If they say it will take more than a week, it is probable that you’re dealing with an inefficient operation. In such a crowded marketplace with demanding consumers, lack of speed kills your company. If a wholesaler is unable to make quick turnarounds for its orders, it is a badly run organization not worth your time.
A reputable wholesaler is likely to provide free shipping to ‘sweeten the deal’ and keep you coming back. Less trustworthy operations will try to squeeze every penny out of you, and some try to charge an extra 10% for shipping! Don’t allow yourself to be gouged; hold out for free shipping.
To succeed in the CBD industry, you need to have exceptionally high standards, and your wholesaler must be the same. Make sure you look at samples before committing to any deal. Pay special attention to the packaging. Are the items sold loosely or in well-designed packaging? Are the products easy to store? Remember, a customer’s eye is drawn to professional displays so make sure you don’t waste money on something that looks as if it has been fished out of a bin.
5 – How Strong is the Marketing Support?
Products live and die on the strength of their marketing. If you align yourself with a wholesaler that has excellent marketing, it becomes easier for your company to make the breakthrough. Good marketing informs consumers about the potential effects of CBD and makes them curious and eager to buy.
Here are a few questions to ask yourself:
- Does the brand have brochures?
- Is it possible to access educational materials?
- Do you get marketing items such as banners and signage with your purchase?
- Can you get samples from the wholesaler to give to prospective customers?
Remember, competition is incredibly strong so you need all the help you can get. If a wholesaler simply gives you the products and lets you get on with the task of selling, you’re not likely to be successful.
Final Thoughts on CBD Wholesalers
Joy Organics is a reputable wholesaler that offers its partners an array of benefits. It is already a well-known brand which can only help with your marketing efforts. It offers up to 60% off retail prices along with free shipping by USPS, same day shipping, and free replacements on customer returns. It caters for smaller start-ups by keeping the minimum order low at just $250, and there are no minimum unit requirements.
If you are worried about any hidden costs, don’t be! It is free to join the Joy Organics program, and it introduces new products regularly. There are easily accessible lab reports, and every product has its own display box. The brand even includes marketing brochures with every order.
In the end, your CBD company is only as good as the products you sell, and the quality of your marketing. When you consider everything, your margins won’t be especially high, so it is important to get the best possible deal without sacrificing quality.