Awesome Tips to Become CBD Oil Distributor
CBD or Cannabidiol is derived from the cannabis plant. There is a lot of research and interest surrounding CBD and this has led to a significant growth in the market.
In fact, the CBD market is growing at a phenomenal rate. It is expected to grow to $2.1 billion by 2020. According to The Hemp Business Journal, quite a bit of total CBD sales - about $450 million - is expected to come from hemp-based sources which means CBD.
It is a profitable time to be in the business of CBD oil and other CBD products. But if you are thinking about jumping into the market as a CBD oil distributor, there are some things you have to know. There are many players in the field. They are drawn by the booming demand for CBD products, especially in states like the Midwest where it's difficult to buy marijuana. To make your mark and profits in the industry, there are a few things to know. Here are our tips to get you started.
- Go Online
The majority of the products are sold online. According to data company Brightfield, about 64.5 percent of CBD oil sales are through online platforms. This means there is a lot of scope for distribution through e-Commerce if you can establish yourself on the platform. In fact, online is the best place to get started. You will save a lot of money in operational costs and set-up. Customers who won't have access to a brick and mortar store will be able to find what they need at your online store. You'll also be able to target your audience with an online platform.
If you go online with your CBD distribution, you'll reach people who want to be able to buy CBD oil from the comfort of their homes. If you don't think there's a market for CBD oil in your area, you can always reach other more accepting markets in other parts of the country. This is clearly why online sales are the preferred format for a CBD distributor as compared to CBD oil retail stores.
- Register your Business First
The first thing you need to do is to get started is to register your business. This will limit your tax and personal liabilities and is the professional way to go about your distributorship. If you're registered, you'll have access to loans, you'll be able to hire employees to work for you, and you'll also be able to find investors. Check out the business registration information for your state or federal registration.
- Find a CBD supplier
To become a CBD distributor, you'll have to find a CBD oil wholesaler from whom you can buy products. A reputable wholesaler will be good for you and your customers. You can join one of several reputed networks of CBD farmers, manufacturers, wholesalers and distributors for a share in the profits of the booming industry. Many such networks will link you to high-quality products along with strategic marketing and manufacturing in-house.
The difficulties of marketing CBD oil and other CBD products are brought about by a gray area that surrounds the legal status of these products. But when you join an established support system, you'll have access to the strategies that have been proven to reach CBD products to customers.
- Check for Quality Sourcing
When you're vetting suppliers, find out where the CBD oil is being sourced from. The source will reflect quality. Many wholesalers source from Europe, where hemp has been grown for years. Some wholesalers and suppliers will grow their own hemp. Do a little research on the kind of farming they are doing. Always make sure they are following the best practices.
- Investigate the Extraction Method
There is no single way for the extraction of CBD oil from hemp in CBD manufacturing. Some labs will use chemicals that are hard to remove completely from what you finally sell to your customers. CO2 extraction is the best standard. The process is a little complicated but it should be the standard you aim to get your customer's good products and benefit you in the long run.
- Ask to see the COA
The COA or Certificate of Analysis will confirm the levels of THC, CBD and other compounds present in a CBD product. You can request a third-party test with any supplier, to find out how pure their product is.
- Price is litmus!
With CBD, you get what you pay for. While prices have dropped significantly recently, be war of products that are priced extremely low. There must be a reason for it.
These tips will help you get started on your hemp oil wholesale business. Good luck!