HOW TO SELL CBD OIL WHOLESALE
This article contains everything you need to know before selling CBD oil wholesale, from how to get a supplier to how to market your product to possible challenges and solutions. We've got you covered, so let's get right into it.
One of the fastest-growing companies in the United States is the cannabis industry. Since its legalization in 2018, individuals have had massive demands for it, and retailers are not sleeping on the increase in demand either. Hence the need for more hands on deck in the cannabis wholesale business. According to Fortune Business Insights, for 2021, the cannabis market stood at $28.26 billion and is expected to rise to $197.74 billion by 2028. Due to this, individuals and companies are looking to enter the cannabis industry. CBD oil is one of the cannabis products in high demand and this is because of its numerous benefits and ease of use.
WHAT IS CBD OIL?
Getting some things right about CBD oil before going into business is important, and this section will address that. Firstly, it is important to note that CBD oil here refers to CBD oil derived from hemp because it is legalized throughout the United States. Tetrahydrocannabinol (THC) is a chemical substance in cannabis that gives the user a "high" euphoric effect. In 2018, the United States government passed a Farm Bill stating that cannabis products containing less than 0.3% THC are legal for recreational purposes. Hemp-derived CBD oil contains less than 0.3% THC, hence it is legalized in the States.
It is also important to note that CBD oil is different from hemp oil as one of them is usually mistaken for the other. Hemp oil has little or no CBD content but contains a high amount of nutrients and fatty acids, while CBD oil contains CBD. Also, hemp seed oil is derived from the hemp seeds, while CBD oil is derived from other parts of the cannabis plant, such as leaves and stalks.
It is also important to know that the type of CBD present may differ for CBD oil. There is full spectrum CBD, broad-spectrum CBD, and CBD isolates. Therefore it is important to note the difference and which of them is present in the oil you are buying and selling.
Full-spectrum CBD oil contains more than just CBD. Apart from CBD, it also contains a host of other CBD derivatives, such as flavonoids and terpenes, including THC.
Broad-spectrum CBD oil contains other compounds with flavonoids and terpenes but contains a minute amount of THC or no THC at all. CBD isolate, on the other hand, contains only CBD. It does not contain other components like flavonoids and terpenes.
LEGAL REGULATIONS
Before selling CBD oil, it is very important to know the legal status of CBD products in your locality. The Farm Bill legalized hemp-derived CBD in 2018 throughout the United States. However, each State has its own CBD laws. For example, some states have accepted the legalization of CBD products, e.g., Florida, and it is important to know that some have not. Therefore it is important to research the legalization of CBD in locations you might be spreading to.
HOW TO SOURCE FOR WHOLESALE CBD OIL
For someone intending to start selling CBD wholesale, there are two important things they need to know; where to buy CBD oil wholesale and how to sell them. This section will cover how you can source quality, unadulterated CBD oil. Here are some factors to consider:
Obtaining a license
Not just anybody can wake up one day and decide they want to start selling CBD oil from henceforth and stock up on it and start selling. Before you sell CBD oil legally, you must obtain a license that permits you to. The first type of license you need to obtain is the business license. The business license is what every business needs to obtain, so you also need it. Check out the appropriate license you need with your local government; however, most small businesses use the LLC, which usually costs around $100.
The second type of license you need is the resale license, which allows you to buy from suppliers. You will collect this certificate from your State; therefore, it differs from State to State. However, research the requirements to obtain it before applying. Also, if you have someone who is into the business already in your State, you can have a conversation with the individual to give you a heads up about other additional requirements your State might have.
Sourcing for a supplier
For someone looking to sell CBD oil wholesale, getting the right supplier is one important factor to consider if you are looking for quality oil. Here are some actionable tips on finding one
Make sure they have third-party testing
When you have a list of suppliers you want to choose from, find out if they have third-party testing. You can search for their website, as most have their third-party testing certificate displayed there. A third-party testing certificate is very important; you are safe to tick any company without it off the list. This is to ensure that you are only supplied with quality, unadulterated CBD oil only.
Visit the company
If you can, this will be a good tip for you. If you want to make a company your supplier, you can visit their company and see how they process their items. You can also examine other factors that you otherwise would not be able to examine online.
Brand reputation
The brand reputation of a company also matters. How long has your supplier been in business? What are people saying about them? A company with a bad reputation will likely not give out good products. You can carry out a little research on what cannabis communities around you think about the company you decide to work with.
For retailers, here is a comprehensive guide to finding a wholesaler supplier. Sourcing for a supplier of quality CBD oil will take some effort, but once you find the right one, you will be at rest and focus on other matters. This brings us to how to sell your wholesale CBD oil.
HOW TO SELL WHOLESALE CBD OIL
After sourcing for the right supplier and stocking up on CBD oil, the next question remains how to sell it, and this section will be dedicated to it. Here is how you can sell off your wholesale CBD oil even as a newbie in the industry and gain a large base of customers.
Outreach
As a CBD oil wholesaler, most of your customers are retailers, including CBD shops and skincare companies that utilize CBD oil, amongst others. Please list such places in your vicinity and reach out to them and pitch them. Let them know what you have to offer them.
You can also pitch potential customers online. Research outlets that sell CBD oil at retail prices and send in your pitch.
Content Strategy
According to Optinmonster, 67% of people prefer to buy using their mobile phones. Having an online marketing strategy is non-negotiable for most vendors today. If you want to reach more people with your products and need a content strategy to drive sales. Here are some content strategy channels you should consider
Social media
There is hardly anyone who is not on social media today, businesses have been raking in millions through social media, and you can too. Here is how
- Find out the social media most suitable for what you sell, which in this case is CBD oil.
- Carry out a competitor analysis. Who are the people doing well in what you are doing, and how are they doing it? What types of content are they putting out? Take notes
- Create your social media page and start giving out valuable content. NB: It may take a while before you gather enough followers on your social media pages, but when you do, it will be worth it.
Create a website and carry out search engine optimization
Another way to sell wholesale CBD oil is to let your buyers find you online by creating your website and optimizing it. This is by creating a blog, researching frequently asked questions about CBD oil, and writing valuable content on it. When people looking for wholesale suppliers search for such questions, your website will be able to pop up on their screen, and you can convert them to customers. It is also important to note that this process takes time and effort, especially for a new website. Still, once your website starts getting views and doing well, it will continuously generate sales for you.
Email marketing
According to statistics, there is a 4200% ROI for email marketing; that is, for every $1 spent on email marketing, you get $42 back. You can build a list of potential customers by putting email newsletter sign-up forms on your website and your social media handles. Then, you can nurture your audience through valuable weekly newsletters.
CBD oil is one of the most sought-after CBD products and has its market in most places.
Branding
Before selling your acquired CBD oil, you should put something in place, which is your branding. Branding is how you want people (your potential customers) to see you, the perception you want them to have of you. This goes down to many things, such as design, your business name, customer service, social media strategy, and everything about your business. It will make you stand out among other people selling the same thing that you sell and distinguishes you.
POSSIBLE CHALLENGES YOU MAY FACE IN MARKETING AND OVERCOMING THEM
It is important to be aware of possible challenges you might have as a wholesale CBD oil supplier, and it is important to be aware beforehand so you can prepare for them. Here are some of them
Delivery
Delivery is one of the foreseeable challenges you might have. This is due to the liquid nature of the oil. If you have to ship from State to State, extra care has to be taken so that the oil does not split in transit.
Different State regulations
The cannabis industry is still nascent. This also means existing laws can be changed, and new laws can be established that may affect how you run your business. Some states have adopted the farm bill in the United States, while others have not. It won't be easy to sell to States that have not adopted the law, thus hindering business.
Gaining traction
The cannabis industry being one of the fastest growing industries also means people are starting their cannabis business daily. One of the challenges you might face is standing out and gaining traction. Also, this might take a while as you do not expect to overtake businesses operating for years.
However, you can stand out by offering marketing support for retailers who buy from you, providing more value, offer free shipping when you can afford it, among other marketing strategies. However, be careful not to embark on a marketing strategy that will harm your business.
It can take a while, but you will surely take your stand in the cannabis world with consistency and quality.
RETAINING CLIENTS WITH EXCELLENT CUSTOMER SERVICE
When the sales start coming in, it is important to know who to retain them. It is easier to get someone who has patronized you before to patronize you again than to win an entirely new customer. It costs less too. The way you can do this is by ensuring you deliver quality products all the time and have excellent customer service. When you have these two in place, your customers will not only come back for more but also recommend you to anyone else who might need your services.
CONCLUSION
According to the Farm Bill, selling CBD oil wholesale has been one of the most lucrative businesses since the legalization of CBD products. However, many do not know how to start and tap into the fast-rising market. Having laid out step-by-step processes you need to follow and boxes you need to tick, all you need to do now is read this article again and draft a plan for your wholesale CBD oil business.
Check out the various marketing channels you can employ, carry out competitor analysis and see what's working for others because there must be a reason it is. Also, it is important to note that most of these marketing strategies take time, especially SEO and social media; however, they will yield returns in multiple folds. Outreaches, however, will get you deals on the spot if you reach out to your ideal customers and brand your business well.