Selling CBD Wholesale: CBD Distributor Opportunities & Getting Into the CBD Business The option to sell hemp-derived CBD wholesale is an appealing one; cannabidiol is high in demand and retailers Are you researching how to distribute CBD Oil products in the UK legally? Do You Need a License? Checkout this in-depth, time saving guide. Interested in CBD oil Wholesale? Learn 7 tips on how to become a CBD oil distributor in the UK and Europe in this article step by step.
Selling CBD Wholesale: CBD Distributor Opportunities & Getting Into the CBD Business
The option to sell hemp-derived CBD wholesale is an appealing one; cannabidiol is high in demand and retailers are catching on.
Legal global sales of cannabidiol, or CBD, skyrocketed between 2014–2018, climbing from $3.4 billion to $11 billion during the four-year period.
In March, CVS Health revealed its plans to stock CBD topical products in 800 stores spread across eight U.S. states. Shortly after, Walgreens Boots Alliance announced it would also start carrying CBD topicals in 1,500 stores. Some other big-name retailers jumping on the bandwagon include drugstore chain Rite Aid and America’s largest supermarket chain by revenue, Kroger.
According to a new Gallup poll, one in seven Americans are CBD consumers. With so many product options on offer, such as tinctures, vape oils, topical salves, and more, being a CBD reseller has potential to be a profitable venture.
Brightfield Group analysts recently predicted that year-over-year CBD sales in the United States will soar 706% this year to approximately $5 billion. Thanks to the rise of CBD wholesale companies marketing CBD products online, sales are forecasted to top $23.7 billion by 2023.
If we compare these figures to the amount of CBD sales recorded in 2018 — around $620 million — it is clear that the market is on a steep incline. This means that the industry grew at a compound annual growth rate (CAGR) of 107%!
As the CBD market continues to flourish, so too do the opportunities for sellers. Enter selling hemp-derived CBD wholesale.
What is CBD Wholesaling?
If you are wondering how to get into the CBD business, why not sell hemp-derived CBD wholesale? Companies that specialize in this segment of sales will deal primarily with bulk orders — typically for brick-and-mortar or online stores.
Hemp-derived CBD distributor opportunities are also abundant, and you won’t be limited to just oils. Working as the middleman means that you can choose the specific type of product you wish to sell.
While the growers and suppliers focus on getting the product ready for the customer, CBD wholesale businesses sell to various retailers and outlets for onward sale. Wholesalers can avoid the time and costs associated with preparing the goods for sale to the end-customer; they simply sell CBD in bulk for a lower unit price to the retailer.
Before You Start: The CBD Wholesale Checklist
When the 2018 Farm Bill federally legalized industrial hemp production across the U.S., more people became curious about how to get into the hemp-derived CBD business. After all, the bill established the foundation for the production and sale of CBD products made from industrial hemp.
Under the Farm Bill, hemp must contain no more than 0.3% of the psychoactive cannabinoid THC (tetrahydrocannabinol), as measured on a dry-weight basis.
With this in mind, there are a few other things to tick off your checklist:
1. Do you have a quality supplier?
If you cannot trust that the supplier manufactures high-quality, uncontaminated hemp-derived CBD, don’t expect to have an easy time selling it. Quality suppliers will source their hemp inputs from farmers that cultivate hemp in accordance with the highest cultivation standards.
Find out if your supplier uses pesticides and chemical fertilizers; they may help to yield bountiful crops, but consumers could be harmed if they use products containing these chemicals. For seeds, inquire about the THC to CBD ratios before buying and seek out a quality breeder with a solid reputation in cultivating CBD-rich hemp strains.
2. Is your supplier legally licensed to manufacture and sell CBD?
And is the hemp material used to make the CBD sourced from a licensed farmer?
Anyone who is keen to learn how to get into the CBD business shouldn’t sidestep this point. This is a question you simply must ask and verify before buying CBD products to sell wholesale. If the CBD was not lawfully sourced from a properly licensed manufacturer using lawfully sourced hemp, you could be purchasing, distributing, and selling at wholesale an unlawful product. This could expose your business, your investors, your employees, and even your customers to a host of regulatory and legal violations — some of which could include criminal sanctions.
3. Does your supplier use third-party testing?
When you are on the hunt for hemp-derived CBD distribution opportunities, pay attention to third-party testing. Request to see lab test results for each production batch of CBD and observe the levels of cannabinoids and terpenes (biological compounds in the plant that can have unique properties by strain) contained in the CBD product.
Failure to do so means you have no idea exactly what it is you are selling, creating a major risk for your business — the CBD products you resell may contain too much THC and too little CBD, making your products unlawful under the Farm Bill and state law. Also, the labels may be incorrect and misleading; the products might be laden with traces of solvents, pesticides and/or metals exposing the end-consumer to health risks; or the products may not be up to the specifications of your business or retailers, making the products unusable.
Additionally, sophisticated retailers will almost always request batch-specific testing information. Without testing results, you are significantly limiting your market opportunities.
4. How long has your supplier been in business?
Aim to find well-established CBD suppliers with a proven track record. New suppliers should not necessarily be avoided, but perform some research prior to buying anything from them. Consider how many sales they have made, what their target market is and, of course, what the customers have to say about their business.
5. Do you have a plan to penetrate the CBD wholesale market?
If you are to stand out among the ocean of hemp-derived CBD wholesale sellers, you must prove it.
Demonstrating how your company can simplify the process of obtaining lawfully sourced, high-quality CBD will give you an opportunity to stand out. Prove how you can provide access to markets.
Remember to track precisely where your hemp-derived CBD products are being distributed. This is essential, among other things, because some states continue to prohibit the possession and sale of CBD products.
Your company and its stakeholders may also be slapped with criminal sanctions if you fail to monitor distribution, so keep this in mind if you want to penetrate the market on a large scale.
6. How is your CBD better?
A CBD wholesale company that carries the best brands is sure to stand out over one that stocks unknown or less favored brands. Quality CBD products will be produced using high-quality industrial hemp manufactured inside a facility that is FDA-registered and CGMP Certified. If your CBD has been produced and tested by industry experts, doctors, and scientists — even better.
7. Do you have hemp-specific licenses/qualifications?
Some states require a hemp handler’s license in order to possess or distribute hemp and/or hemp products. Other states may require a special hemp processor license. Some states may also regulate CBD under their existing food safety laws, which requires that facilities where hemp products, including CBD, are produced, stored, and distributed be registered with the state’s department of health and operate in compliance with food safety laws and regulations.
Finding the Right Supplier(s)
Perhaps the most crucial step to succeeding with selling CBD wholesale is finding a dependable supplier. Avoid selling something that you would not necessarily consider trying yourself. Low-quality products will reflect poorly on you as the wholesaler, so don’t cut corners to save yourself money.
A trusted supplier should be certified by the U.S. Hemp Authority program. Additionally, a CBD supplier should be compliant with regulations laid out by the Food and Drug Administration (FDA).
Here are some other things to look out for when seeking out CBD product opportunities:
1. Look at third-party testing results.
Before you start to sell CBD wholesale, take it upon yourself to ask the supplier for proof that their product is safe for human use and/or consumption. Microbial contamination is common in hemp plants. Contaminated products may cause human toxicity and unwanted pharmacologic effects.
Confirming a product’s reliability and potency is dependent, in part, on the results gleaned from third-party CBD testing.
2. Try some of the product yourself.
If you know how well a hemp-derived CBD product works, you can feel confident about buying and reselling it. Make a note of what each product looks, tastes, and smells like; how it made you feel; whether or not you experienced any side effects; how the product was packaged and branded, etc.
It’s worth asking a supplier for some free samples as a means of determining its suitability for CBD wholesale reselling.
3. Test against other products.
During the testing phase, compare products side-by-side for an accurate insight into which brands are worth buying from. Make sure the products contain the same level of CBD, so as to draw up the most precise judgement on its potential. Keep a note of each brand’s pros and cons before coming to a conclusion.
4. Visit the manufacturing facility.
Once you have narrowed down your options to just a handful — after testing several hemp-derived CBD products against each other — arrange a trip to the supplier’s cultivation and/or manufacturing facility. This will grant you an inside look at processes of that particular brand and how safely they conduct business in accordance with applicable laws.
Example CBD Suppliers
Learning how to get into the CBD business demands a certain level of knowledge on the best suppliers. Allocating time to finding one you want to work with is not always possible with so many other tasks to accomplish while setting up a wholesale CBD company.
On that note, we have highlighted some CBD suppliers online and some of the advantages to each.
Since its inception in 2015, CBDistillery has gained a solid reputation as a trustworthy partner of thousands of nationwide retailers. All products supplied by the company are tested by third-party laboratories and packaged with clear labeling. Examples of the retailers CBDistillery partners with include convenience stores, independent pharmacies, medical/healthcare offices, and wellness centers.
2. Global Cannabinoids.
A number one producer, manufacturer, and distributor of American-cultivated, hemp-derived CBD, Global Cannabinoids was also established in 2015. Specializing in bulk and wholesale CBD, the company’s product range includes CBD coffee, water-soluble nano CBD, pure hemp oils, CBD-infused bath bombs, CBD-rich full-spectrum tinctures, and CBD soft gels, to name a few.
Another company worth consulting for wholesale CBD oil opportunities is HempMeds. The company produces Real Scientific Hemp Oil™ using hemp cultivated on a fifth generation hemp farm in the Netherlands. Triple lab tested hemp is derived from hemp seeds certified with the Organization for Economic Co-operation and Development (OECD).
This CBD supplier describes itself as “the Innovation leader in the CBD Industry.” By utilizing a TruSpeKtrum technology platform process, Kazmira prides itself on eliminating traces of THC, chlorophyll, and plant wax from its products. Trace cannabinoids like Cannabigerol (CBG), Cannabichromene (CBC), and Cannabinol (CBN) are also eradicated from Kazmira’s THC-free CBD.
Finding Your Retailer Niche
Just like any other industry, one of the most important metrics to consider when getting involved with CBD wholesale centers around points of distribution is how many different retailers stock the product.
Various business-to-consumer (B2C) retailers concentrate on CBD products. Tapping into the potential of their resources will ensure that your inventory is always in high demand.
The following B2C retailers have a targeted customer base and will be on the lookout for CBD wholesale specialists when they need to replenish stock.
1. Head shops.
Head shops are rooted in cannabis culture, sprouting from the hippie scene in the late 1960s. Retail outlets of this kind specialize in pot paraphernalia specifically designed for social consumption.
Advantages: These types of retail stores are worth contacting if you are selling wholesale CBD products online. Scattered around most large cities, head shops boast existing clientele and a loyal local customer base.
Challenges: Head shops are preferred by adult-use cannabis consumers. This means that CBD consumers may stray from them. Some head shops may also struggle to compete on quality with other retail outlets.
2. Online retailers.
The number of online shoppers is predicted to reach two billion this year, with the figure anticipated to top 2.14 billion by the year 2021. With so many people buying products digitally, it would be a shame not to tap into the potential of online retailers.
Advantages: Online retailers demand far less infrastructure than brick-and-mortar stores. Plus, considering there are 4.39 billion internet users as of 2019, the customer reach is far larger than any other options.
Challenges: Due to high demand from customers, online retailers can be difficult to get in touch with. Moreover, online markets are fairly saturated.
3. Specialty brick-and-mortar shops.
Specialty stores cater to a particular retail market. A few prime examples of specialty brick-and-mortar businesses that would welcome CBD products include vape shops, smoke shops, health/wellness stores, and nutrition stores.
Advantages: You can find these types of stores peppered around most cities and states, making them easy to track down and get in touch with. With their local feel and the fact that they only carry specific products of quality, they tend to have a loyal customer base.
Challenges: Much like dispensaries, specialty brick-and-mortars will be overly scrutinizing what they sell. This means that you’ll need to choose the highest quality products if you want to sell CBD wholesale to this type of retail outlet. Prices tend to be higher than in head shops or dispensaries, so you’ll need higher margins to stay in business.
Picking CBD Products to Sell
Choose the specific products you want to sell CBD wholesale based on the target market you intend to capture. Are you hoping to attract the attention of wellness-focused consumers, or people who are looking to try CBD for the first time?
Alternatively, you may want to sell CBD wholesale to retailers with consumers interested in using this non-psychoactive cannabinoid for skin care. Whatever the reason, make sure your chosen audience is likely to visit the specific outlet(s) where you distribute products.
Below, we highlight the main areas of interest for CBD consumers. Please note that the FDA’s position is that it is unlawful under federal law to add CBD to food products, including tinctures, edible products, and beverages.
1. Oils and tinctures.
By 2023, the global CBD oil market is expected to turn over USD $23.7 billion. Oils — which can be administered in the form of a tincture — are discreet and convenient.
2. Edibles and gummies.
Although edibles and gummies may take longer to kick in, the effects are often longer-lasting. The diversity that comes with consuming edibles, such as the endless flavor options, has contributed to growth in this segment of the CBD market. This year, projections for the CBD-infused edible market are $4.1 billion by 2022.
Drinks are another segment of the CBD market where you can potentially profit. Scientists and product developers have mastered a way to infuse CBD into water, and there are even dissolvable CBD powders available!
Industry analysts say this is one of the fastest-growing areas of CBD retail; between 2018 and 2023, the CBD beverages market will grow at a compound annual growth rate (CAGR) of 74.7%.
4. Topicals and skin care.
Topical and cosmetic CBD products are increasingly available and are often the preferred product type for large national retail chains.
A report released in August 2019 from Grand View Research, Inc. suggests that the value of the global CBD skin care market will surge to $1.7 billion by 2025.
In spite of the recent issues around contaminated vape products, this market is booming. Vaporizing CBD oil delivers a wallop of cannabinoid-richness to the lungs, and the effects surface almost instantly.
CBD-filled capsules and supplements can be taken on the move, in the privacy of one’s own home, or even just before hitting the gym. This segment of the market falls into health and wellness.
Keep in mind that the FDA’s position is that it is unlawful under federal law to market CBD as or in a dietary supplement.
Building a Website to Fit Your CBD Narrative
If a retailer is going to buy wholesale hemp-derived CBD from you, they need to know you’re serious about what you do. In the same way that customers seek out trustworthy sellers online, a retailer will first assess your services based on how you appear online.
Without a website, standing out from the crowd will be nearly impossible. Plus, when you consider the fact that 72% of ecommerce will occur on a mobile device by 2021, you simply must have a mobile-friendly website if you are to attract the right clientele.
As noted by the FDA, making health claims about CBD is not permitted. On that note, let’s find out what else is required to attract CBD wholesale buyers.
1. Make it beautiful and easy to read.
Putting a little bit of effort into the way your CBD wholesale website appears from a retailer’s perspective will go a long way. A well-designed website that contains all of the necessary information will reflect on your professionalism.
Thankfully, BigCommerce makes it easy. With a broad spectrum of visually stunning designs and themes to choose from on our platform, you can deliver a personalized experience and bolster the chances of converting leads into sales.
2. Show test results.
Don’t forget to publish third-party lab test results online. This will help retailers make an informed buying decision. If you don’t review third-party lab tests, a supplier could claim that various ingredients are contained in their product when in fact, they are not.
3. Highlight brands.
Retailers will want to see exactly what types of CBD products you intend to distribute to their stores, as well as the brands you carry. With the BigCommerce platform, you can easily promote your services in an appealing and eye-catching way. Our website design feature makes it possible for anyone to create a website featuring your selection of CBD brands in no time.
4. Attach pricing sheets if possible.
Approximately 55% of visitors will spend only 15 seconds on a website before they lose interest or continue browsing. With that being said, you should feed retailers with the information that they need in a bite-sized and comprehensible way.
One of the main things a retailer will want to know is pricing, since they must consider their budget and profit margins before they can make a purchase. Either have an online pricing sheet or downloadable PDF of all your available products and the prices for quantities. Something like this:
How To Become A CBD Oil Distributor in the UK
Over the last couple of years, there has been a rising demand for CBD (Cannabidiol) products in the UK, and this trend is not about to stop.
There are many lucrative business ideas in the CBD market, and one of them is starting a brand/business for distributing CBD oil.
As a distributor, you act as the link between the producer and the consumer, offering and selling products to meet the strong demand.
Millions of people in the UK use CBD oil daily, so the economic potential is massive. It also helps that CBD is not classed as an illegal substance in the UK.
(Click on this link if you want to learn more about CBD Queen’s CBD Oil Wholesale supplies, or try our CBD gummy bears here).
Do You Need a License to Sell CBD in the UK?
The extraction and processing of CBD products are governed by strict laws that protect citizens against substandard nutritional supplements.
But if you want to set up a retail business, you do not need a license to sell CBD in the UK.
This is excellent news, considering how resource-draining the process can be.
The government requires that you offer CBD oil for sale as a nutritional or food supplement, not medicine.
You must observe advertising guidelines and desist from making inaccurate health claims, but you do not need a license.
The CBD products you sell must not contain more than 1mg of THC (tetrahydrocannabinol) and CBN (Cannabinol).
THC and CBN are controlled substances in the UK.
As a distributor, you owe your consumers to provide top-quality CBD oil. So, ensure that you perform due diligence on the manufacturing firms you partner with.
These are some of the things you should find out:
- Is their manufacturing facility GMP-certified?
Being GMP-certified indicates that the company possesses all the critical systems in its facility. Thus, the company is in a position to create quality products.
Not all hemp is equal. For example, there is chemically engineered industrial hemp and organically-grown industrial hemp.
Quality CBD oil can only be obtained from organically grown industrial hemp.
- Do their products have a lab report?
Lab reports verify that the desired ingredients are present and that the product is free from toxic elements like heavy metals, mould, and herbicides.
Quality CBD products should have lab reports to clarify their contents.
Where Can You Buy Wholesale CBD in the UK?
To be a successful CBD oil distributor, you must have a solid and dependable manufacturing company.
The CBD Queen brand is among some of the oldest and most trusted CBD wholesalers in the UK, and our doors are open for both domestic and overseas distributors.
We have an impressive wholesale program, and you can access our full range of products.
We are also flexible regarding the minimum quantities, enabling you to work with different budgets.
If you have any questions about our CBD wholesale UK service , you can send us an email or use the contact form here. We typically get back within 24 hours.
Our Award-Winning CBD Range
Tips on Becoming a Successful CBD Oil Distributor
These factors are critical for fast-tracking success:
1 – Know the rules
If you have contacts, use them, but if you have no social capital, you can still leverage the internet and learn everything you wish to know.
For one, you need to understand the legal practices during manufacturing, advertising, and selling, as well as your limits as a retail distributor.
For instance, you must not make exaggerated claims about CBD benefits or pass it off as a medical product.
Knowing the rules keeps you from making mistakes, and it helps you achieve success quicker.
2 – Have a business plan
It may sound cliché, but nothing beats the good old business plan. A business plan includes your goals and articulates how you are going to achieve them.
It also gives you foresight into the challenges ahead, thus helping you to come up with solutions and steer your new CBD business into a success.
Additionally, if you are looking for capital to start or expand your business, having a business plan improves your chances of securing funding from financial institutions or investors.
Ok, so that is it for this post. We hope it has helped you answer how you can become a CBD oil distributor and any questions you might have had such as – do you need a license to sell CBD in the United Kingdom?
Thanks for visiting our blog, and please feel free to take a look at our CBD oil product line in our UK CBD shop.
Author – Lisa Strange
Lisa is the co-founder of CBD Queen, head of product development and quality control. Lisa is passionate about CBD Oil and the potential benefits it can offer people. She writes about these benefits on this blog. You can find out more about Lisa here.
We hope you find this article helpful. If you would like to try CBD oil and see if it can help you live a healthier life, please take a look at the CBD Queen Shop.
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CBD Wholesale: How to Become A CBD Oil Distributor in the UK?
With the amount of increase in usage of CBD, everywhere around the globe, including Europe, CBD business is considered one of the best possible venture in today’s time.
CBD is legally traded throughout Europe, still not permitted in Slovakia and Lithuania. Although it is still legal, the law is trying to restrict the use to medical purposes only. However, CBD market is showing an upward trend in usage, and that is something that one can take advantage of and become a CBD oil distributor.
7 Steps to Become a CBD Distributor in Europe and the UK
This article will highlight the key decisions and important things to remember while starting your own CBD oil business in Europe and become a successful CBD oil distributor .
Step 1: Check the Legalities Of CBD
Although CBD is legal in Europe, the content of THC has been determined by each state separately. You need to look up to the law and guidelines specified by the governing authority of each state. For instance, in Switzerland, the amount of THC valid is up to 1%, and the CBD products less than the determined amount can be legally traded.
In Europe, the government is trying to cut down the usage, but the use of CBD for medical purposes is increasing because of its potential benefits to the patients.
Step 2: Study The Market
You need to do a thorough study of the market requirement and decide the customers whose needs you will prefer to cater to.
Moreover, you could prefer the physical market, or you can even deal with this through the digital market. Digital marketers have a wider spread and can get you more customers than compared to a physical market.
Market positioning is possible if you have a business plan as to how to get into the CBD industry and create a position for your brand. Currently, In Europe, the largest CBD market is UK and Germany, and they are increasing day by day.
Step 3: Get a License
This is something that needs to be taken care of as soon as you are done selecting the market and are ready to plunge into the CBD business. There are multiple authorities with which you have to get yourself registered under various laws that govern your CBD business.
To help you out with this, you can hire a lawyer who could help you out with all the legal work and can ensure that none of the licenses that your CBD business needs have been missed out on. This is a very crucial step as missing out on any one of the licenses can lead to penal action.
Step 4: Selecting Your Suppliers
Once you have registered your CBD company, you need suppliers to cater to your requirements. For this, you need to do a thorough survey of certified suppliers who could provide you with the best quality ingredients.
Moreover, it is always preferable to have two or three suppliers rather than just one supplier so that in case of any mishap, you can always switch to other suppliers, and your production is not hindered as well.
Being proactive is a must in this stage as delaying the process of procuring raw material, can lead to a huge amount of opportunity cost.
Step 5: Advertisement
It goes without saying that you need to market your CBD products well to have a market name, which will help you get a good market share. In today’s world, the worth of your product is created by the way in which it is marketed. Hence you wouldn’t want to miss this step out or even undermine its importance.
Also, the best way is to outsource the marketing or hire a marketing team for selling products as it will provide you with an edge. Make sure that your marketing team is well-versed with SEO services and can use social media in such a way that can help position your product in the UK market.
You could market your CBD product by sending it out to social media influencers or can even tie them up with your CBD oil distributors. The traditional ways of advertising, i.e. providing the high quality products at a concessional rate or for free with other products, can also help your CBD company grow.
You can also conduct seminars and conferences about the benefits CBD has.
Step 6: Logistics
This is an important step that every CBD oil distributor should keep in mind. You need to be sorted about the way your CBD products move in your factory. Logistics is not only concerned with supplying high quality CBD products to your customer but also the ways and the manner of procurement of raw materials. A proper blueprint needs to be there, which shows how the products will move out of the factory or move in the factory.
You should keep in mind that logistics is also concerned about how the raw materials are to be moved within the factory.
Step 7: Customer Satisfaction And Maintaining Customer Base
You need to do this even while you are processing your orders. That is you need to provide them with all the details, even something as small as shipping details. You can even ask your customers to review their experience by filling up a questionnaire. This might help you find problems or services in which your company is lagging behind.
To maintain your customer base, you need to be in constant touch with them. For that, you can send them out emails when any new product launch is being launched or if there are any festive offers.
Moreover, you can also give referral discounts to promote sales. This can help you keep a hold of new customers and get some new customers as well.
You need to plan CBD in a very crucial way if you want to become a CBD oil distributor as a lot of legalities and successfull CBD companies are involved here. Moreover, the machines needed require a huge capital investment. Therefore, ensure that you plan and implement everything in a careful and step-by-step manner.
The best way is to hire an expert who could help you deal with the planning and the legalities of CBD wholesale.