How to Sell Hemp Products Wholesale – Starting a CBD Business

6 November 2020

What does CBD wholesaling mean?

Wholesaling refers to selling bulk products at a great price, usually to retailers who then go on to sell the products at an even higher price to make a profit. So, selling hemp products wholesale simply means that you’ll be a hemp CBD (cannabidiol) distributor. You’ll buy the products in bulk from the growers and suppliers at lower prices, allowing you to sell bulk hemp products to CBD retailers and outlets at a lower cost than what they can sell it for.

Ultimately, you would be dealing with bulk CBD (cannabidiol) orders for brick-and-motor or online stores. In this case, you get to be the middleman, giving you the freedom to choose which specific type of CBD products you would like to sell.

Considering the types of products to sell

As a wholesaler, it is best to identify your target market to ensure that the CBD product you intend to sell is in demand. Let’s take a look at the type of hemp products you can sell wholesale.

  • Oils and tinctures
  • Edibles and gummies
  • Drinks
  • Topicals and skincare
  • Vapes
  • Supplements

The Hemp Products Wholesale checklist: Getting started

Hemp production became federally legalized when the U.S. passed the 2018 Farm Bill. The criteria for selling hemp products legally is that the hemp may not contain more than 0.3% THC (tetrahydrocannabinol), which is the chemical that leads to intoxication. That is why it is so important to choose the right growers and suppliers. If you do not, you may run into some legal issues and you’ll have a hard time selling your hemp products wholesale. Without further ado, let’s look at some of the things you’ll want to consider as a distributor.

Do you have a high-quality supplier?

To become a hemp wholesaler you need to have legitimate suppliers. They need to manufacture high-quality products that are free from contaminants such as pesticides, molds, bacteria, metals, and solvents since these could be harmful to consumers. Good suppliers will source their hemp from farmers who follow stringent standards during the cultivation process. You’ll want to know about the THC to CBD ratios of the seeds before buying too. Seeking out a breeder with a reputable reputation is a definite must.

Is your supplier legitimate?

An important step to consider taking is to check whether your supplier is selling you CBD from a licensed manufacturer using lawfully sourced hemp. This is not something to take lightly because dealing with an unlicensed farmer or manufacturer could lead to you purchasing and selling hemp products wholesale that is unlawful, exposing your business and all the involved parties to legal violations.

Does your supplier use third party testing?

What is all the fuss about? Well, third party testing will not only ensure that your supplier is legitimate, but it will also boost your market opportunities since almost every well-known retailer will request batch-specific testing reports. You should request lab results for each batch of CBD to see what the levels of cannabinoids and terpenes are. If you do not make these requests, you might put your business in jeopardy by selling CBD products that contain too much THC and not enough CBD. You do not want to be in the position where you sell hemp wholesale and the product is unusable by the retailer. It is best to be proactive here.

How long has your supplier been around?

The best approach to take when you want to sell hemp wholesale is to find a supplier who has been in the business for a while with a good reputation. Although you don’t need to completely disregard new suppliers, provided you do the necessary research to check their credibility in which case you should look at previous ratings, sales they have made, and their target market.

Are you ready to enter the CBD wholesale market?

With the sale of CBD products becoming increasingly popular, you need to make sure you stand out from the crowd as a CBD distributor. You need a plan to penetrate the market. Proving your ability to obtain CBD that has been lawfully sourced and is of high-quality will give you a competitive edge. It is equally important to have a system in place to track the distribution of your CBD products. This will prevent you from running into legal issues since the laws on selling CBD may differ in some states.

What makes your CBD better?

The more rigorous the testing, the more credible the brand. If you want to sell hemp products wholesale, then you want your business to be known for carrying great brands that are of high-quality. It is best if your CBD products are produced using industrial hemp manufactured inside an FDA (Food and Drug Administration) registered and CGMP (Current Good Manufacturing Practices) certified facility. Titles matter, so even getting your CBD products tested by doctors, scientists or other experts is likely to put your company above others.

Do you have the required licenses or certifications?

Depending on the state where you intend to sell hemp wholesale, you need to check whether a special hemp processor license or a hemp handler’s license is needed for you to distribute CBD products. In some states, the facilities where the hemp is stored has to be registered with the department of health as CBD is regulated by food safety laws.

Finding your target retailer

You’ve become a CBD distributor by selling hemp products wholesale, now you need to decide which retailers you want to sell your products to. Let’s look at the types of CBD stores that you could target:

Head shops

Derived from the word “pothead” or “acidhead”, head shops specialize in the sale of drug paraphernalia and can be found scattered around towns and cities. They are a good target since they have a loyal clientele base. The only downside is that these stores were initially supported by adult-use consumers meaning CBD consumers may be uncomfortable using them.

Online retailers

There is no doubt that selling CBD online is one of the fastest-growing markets. This makes them a good target to sell hemp products wholesale. Online stores have the potential to serve a much bigger client base making the demand for hemp products high. It may take some persistence, though. Online sellers tend to be difficult to get in touch with due to their customers’ high demands.

Brick-and-mortar shops

You could target specialty stores that target the same market as you do. You would, for example, target a vape shop if you wanted to supply vape CBD products. Just like head shops, they tend to have loyal client bases and are relatively easy to track down. The downside to these stores is that CBD consumers are leaning towards online purchases and sales in these stores have decreased, particularly with the coronavirus pandemic. They are also only likely to buy wholesale products of high-quality and are not shy to scrutinize the products.

Conclusion

If you want to sell hemp products wholesale you should identify the factors that will lead to your success, such as target markets, target stores, and suppliers. Once you know which hemp products you want to sell wholesale, you should choose a good supplier. Pitch your products to the various stores you have targeted and when your business takes off, you should look into getting a website going.

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