Wholesale CBD: 7 buying tips

It's harvest time! Many hemp farms have begun harvesting and drying what they've planted for the season. For a competent CBD entrepreneur who understands the laws of supply and demand, this is the best time to order your products from a CBD wholesaler. Because despite the raging pandemic, prices will be relatively low in the coming weeks.

Now that business is moving online, you'll find many wholesale offers for CBD products on the web. It's like ordering a pizza delivered to your door, it's quick and easy. However, you may have to deal with pizza delivery disappointments, such as delays, high delivery charges, poor delivery or less cheese than you ordered. And there are even more risks with CBD!

So we've created seven tips to guide you through the murky waters of this tricky CBD market. And so without too much delay, here's the first one!

Educate yourself and become an authority on the CBD market

Don't be like John.

John read online that the CBD sector was valued at an impressive $4.6 billion (around €3.9 billion) in 2018 and was set to grow until 2025 at a compound annual growth rate (CAGR) of 22.2%.

Driven by the desire to become an instantly successful entrepreneur, he drew up a superficial business plan without understanding what CBD is all about. All he wanted was a quick profit.

Poor John couldn't make enough sales to avoid the huge losses that decimated his new cannabidiol brand within the first few months. The highly regulated CBD market and dynamics were too complicated and cumbersome for him to manage.

So you need to take the time to learn the CBD market and its specifics. If you're considering entering a new market, keep in mind that it takes time and perseverance to create a sustainable hemp business. Only then will you be ready to take advantage of the harvest season by placing your order with a CBD wholesaler.

Compliance

Among the many aspects of CBD you need to understand before placing wholesale orders is compliance with the laws in the regions where you wish to sell these products. Hemp laws can vary from country to country, region to region, and even canton/department to canton/department.

THC requirements for legal hemp are a good example. You see, THC being a psychoactive compound, it is categorized in most jurisdictions as a narcotic. Only a few regional governments and countries have legalized it for recreational use.

Ask yourself these three questions:

1. What is the geolocation of your target market?
2. What is the local definition of hemp in terms of THC limits?
3. Does your CBD order from a wholesaler tick all the legal boxes in your target market?

Hemp is in the news more than ever. Since then, law enforcement agencies have done their utmost to regulate this sensitive market. If you don't respect these regulations, you'll be digging your company's own grave, waiting for the police to arrive to close the coffin and bury it.

Adapting to your target market

Let's talk about your business plan. Who are your buyers? Who is your target market and what do they want from you? Here's an example of why you need to match your target audience when it comes to hemp products.

In 2017, theWorld Anti-Doping Agency (WADA) removed cannabidiol extracted from hemp from its list of substances banned for professional athletes. However, the agency still bans all other cannabinoids, including THC, which athletes must regularly have tested for.

So, if your brand targets professional athletes, you should avoid hemp extracts or processed products containing any amount of THC - even if the legal limit is met. This is the essence of knowing and understanding your market when ordering your CBD wholesale.

CBD wholesaler: do you buy quality hemp?

An essential quality that is being eroded in today's hemp world is transparency. Hemp is a unique plant. But how? Farmers plant hemp seeds, which can then turn into "hot hemp" when they're ready to be harvested. The "hot hemp" is destined to be destroyed because its THC content is higher than necessary or tolerated by law. This means a whole season of losses for the grower.

Dishonest sellers will easily mislead you by offering affordable hemp that doesn't meet your needs. There have been cases where CBD market research has revealed products with THC content above legal limits or CBD content below that advertised.

Here are a few tips to help you avoid misleading advertising:

• Is hemp organic and GMO-free?
• Was it planted indoors, in a greenhouse or outdoors?
• In which country was the cannabis grown, and what are the local or national quality assurance protocols?
• Is the laboratory test available from a recognized laboratory?

How can you find the answers to these questions? Read sellers' online presence and filter out red flags. Next, you can ask local authorities about the seller's licensing and quality assurance. Finally, take a close look at the certificate of authenticity, if available. You can also request a sample of CBD products and have them analyzed yourself in a reputable, independent laboratory.

Online reviews of your CBD wholesaler

Shopper behavior is changing thanks to the reliability of the internet. A 2018 report showed that more shoppers are reading online reviews before buying products - online or in-store. This has become normal in our digital world.

Online reviews tell you what other buyers think of the seller and the sales experience. You'll be able to answer questions such as:

• Is the seller a fraudster?
• Does the CBD wholesaler deliver exactly what is purchased on time?
• Is the vendor easy to work with?
• Are there any problems with wholesale CBD orders and, if so, how has the seller resolved them?
• Where can you get such reviews? Some brands choose to integrate customer reviews on their websites, but customers also rate their experiences directly on sites like Trusted Shops. If you're missing all these elements, why not head straight to the seller's social networking pages?

One thing: beware of fake reviews in online PR or from sites that use their own review system.

Big business versus small business

After the pandemic, many companies are struggling to stay on their feet. Most companies are trying to save every penny they can. So it's imperative that you evaluate and decide on your potential CBD wholesaler based on your market position and objectives.

If you're looking to save as much as possible with wholesale orders, you may want to look into a new wholesale hemp seller. They tend to sell off the prices of their CBD products as they look to create a larger portfolio of customers.

However, if you have deep pockets, you can choose to order your CBD in bulk from an established brand. This will cost you more, but here's why it can be a game-changer. Associating your brand with an established producer gives you an edge over your competitors. You can easily make your vendor's brand your own influencer later on.

Delivery policy

You've reviewed a plethora of vendors and finally chosen the one you're going to work with - congratulations! But before you commit to a deal, never forget to check your seller's shipping policy.

• How fast does the seller ship, and by what means?
• Is there a guarantee of on-time delivery?
• How will your CDB be packaged to stay pure and powerful?
• Who is responsible for transit shipments and who pays the bill?

Bonus tip

Don't hesitate to ask for quotes, and never forget to compare the different prices on offer. It's wise to keep this function as a final filter after you've shortlisted different sellers. Filtering prices first may exclude legitimate sellers of pure, potent hemp, or allow you to make overpriced offers.

When it comes to price, think about what you're going to spend to get the delivered CBD ready for consumption. For example, are you looking for CBD flowers that still need to be processed, or tinctures ready for white label?

Did you know that Naturalpes is also a wholesaler? Interested in becoming a CBD entrepreneur? Or perhaps you simply have more questions or need more information? The Naturalpes team is at your disposal, and we'll be happy to help.

Written by Naturalpes

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