8 Things to Consider When Buying Wholesale/Bulk CBD Products
The US CBD market grew by a staggering 700% in 2019 alone, and is projected to hit about $13 billion by 2023. This means that the industry is thriving, and supplying CBD products is a great business proposition.
Now, the question is, what should you consider when buying bulk CBD products for your business?
Well, there are so many factors that come into play, and all of them will affect your business in one way or another. To help you make informed decisions, we bring you this comprehensive guide on these factors.
Keep reading to find the eight things to consider when buying bulk CBD products.
The Source and Extraction Method of the CBD
The source of CBD is a critical consideration, and you need to be sure that the supplier you’re working with is reliable and reputable. You want to make sure that the CBD is sourced from organic hemp plants, and is pesticide and solvent-free. Also, check for third-party lab testing reports to verify the quality and potency of the CBD oil.
Furthermore, CBD can be extracted from hemp in various ways, and each has its own advantages and disadvantages. CO2 extraction is considered the best method. It uses pressure and temperature to extract CBD oil without using any solvents or chemicals.
Other methods, such as ethanol extraction, use harsh chemicals and solvents that can leave harmful residues in the CBD oil. Your customers will most certainly be wary of the kind of products they’re buying, so you need to ensure quality for your CBD business to thrive.
The CBD Concentration
When buying bulk CBD, you need to be sure of the concentration of the oil. This is especially important if you’re selling CBD products to customers with different needs.
Some people might need a high concentration of CBD for relief from chronic pain, while others might just need a small dose for general wellness. Ideally, your supplier should be able to provide lab reports that show the concentration of the CBD products.
The Type of CBD Product
Not all CBD products are created equal, and you need to decide what type of products you want to sell. There are various forms of CBD products available these days.
You should carefully consider the benefits and drawbacks of each before deciding. For example, CBD oil is a typical extract that has undergone several processing methods and can be used in many ways.
If you want to sell more oil, look for things like CBN isolate wholesale products if you notice a high demand from more customers. On the other hand, topical products such as creams and salves can provide immediate relief to chronic pain. Other forms include capsules/pills, edible items like chocolates or gummies, tinctures, etc.
The Price of the CBD Products
Whether you’re selling CBD online or through brick-and-mortar stores, you’ll need to price your products competitively enough to attract customers. Most CBD companies offer wholesale pricing that can significantly lower the average retail prices of their products.
Inquire about these offers in advance from several wholesale companies so you can choose the best price for high-quality products. Last but not least, how much do you pay your suppliers? Do they require a minimum order every time, or are they okay supplying any amount of products you like?
The Potential for Legal Ramifications
The CBD industry is still very new and growing, and there are several legal grey areas that can affect your business. For example, some states allow CBD products to be sold as food supplements, good news, while others view them as controlled substances.
There are also restrictions on the marketing and branding of such products, and you must understand how they’ll affect you? If you plan to expand your business across multiple geographical locations with different laws, these issues can become a potential headache.
The Tax Implications
When operating a CBD business or buying bulk CBD products, tax implications are a critical aspect to think about. As we mentioned earlier, many states do not regulate this product yet and classify it as a novel food, meaning it is not subject to any taxes.
However, this could quickly change if CBD becomes more mainstream and the government decides to levy taxes on it. When starting a CBD company, you need to be aware of the tax implications that’ll come with buying products in wholesale, more so because of shipping.
The Customer Service and Reputation of the Supplier
The professionalism of the supplier is by far the most important factor you need to consider when buying bulk CBD products. Not all suppliers are created equal, and some may not adhere to the same quality standards as others. It’s important to do your research and find a supplier that can provide you with lab reports that show the concentration and purity of their CBD products.
Another important consideration is customer service. This includes the quality of customer service, the speed of response, and the overall attitude of the supplier’s team. Poor customer service can quickly turn customers away.
It’s important to be sure that you work with a supplier that takes pride in serving its customers. Moreover, you need to check the supplier’s reputation and work with companies that have a solid track record in their industry.
You should also check for reviews from other customers who have purchased products from the supplier before. The best CBD company will have no problem providing you with some of their past and current referrals that you can talk to.
Shipping Time and Methods
When ordering bulk CBD, it’s important to consider the shipping time and methods offered by your supplier. Most reputable suppliers offer next-day shipping to cut down on delivery time and costs.
If the supplier only ships CBD products through ground transportation, it would be best to find alternative suppliers. Find one that can offer faster and more cost-effective options, like air courier or overnight shipping.
Buying Bulk CBD Products: The Ultimate Guide on Buying Wholesale CBD Products
With these factors in mind, you should now better understand what kind of wholesale CBD supplier is right for your business. You may sell CBD online, be a dispensary owner, or simply someone who wants to buy bulk CBD products for personal use. We hope this list has helped arm you with the information and knowledge necessary to make the right decisions.
Did you like our post? If you found it informative, please head over to our blog, where we have many more valuable posts!