Here we are, it's harvest time! Many hemp farms have begun to harvest and dry what they have 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 product 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 will 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 face disappointments with pizza delivery, 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 challenging CBD market. And so without further ado, 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 (about €3.9 billion) in 2018 and was expected to grow until 2025 at a compound annual growth rate (CAGR) of 22.2%.
Driven by the desire to become an instant success entrepreneur, he developed 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 in the first few months. The highly regulated CBD market and dynamics were too complicated and cumbersome for him to manage.
You should therefore take the time to learn about the CBD market and its specificities. If you are considering entering a new market, keep in mind that it takes time and perseverance to create a sustainable business in the hemp sector. 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 that 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, from region to region, and even from canton/department to canton.
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:
- What is the geolocation of your target market?
- What is the local definition of hemp with regard to THC limits?
- Does your CBD order from a wholesaler tick all the boxes for legality 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 comply with these regulations, you will be digging your own grave while waiting for the police to arrive to close the coffin and bury it.
Adaptation 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 is 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 is targeting 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 in bulk.
CBD wholesaler: do you buy quality hemp?
One 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 deceive you by offering affordable hemp that does not 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.
To avoid these misleading advertisements, here are some tips to guide you:
- 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 and from a recognised laboratory?
How can you find the answers to these questions? Read the online presence of vendors and filter out red flags. Next, you can ask local authorities about the seller's licensing and quality assurance. Finally, look carefully at the certificate of authenticity if it is present. You can also ask for a sample of the CBD products and have them analysed yourself in an independent and reputable laboratory.
Online review of your CBD wholesaler
Buyer behaviour is changing thanks to the reliability of the internet. A 2018 report has shown 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. This will help you answer questions such as:
- Is the seller fraudulent?
- Does the CBD wholesaler deliver exactly what is purchased within the agreed timeframe?
- Is it easy to work with the vendor?
- 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 embed customer reviews on their websites, but customers also rate their experiences directly on sites like TrustPilot. If you're missing out on all of these, why not go straight to the seller's social media pages?
One thing: beware of false evaluations in online PR or sites that use their own evaluation 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. It is therefore imperative that you evaluate and decide on your potential CBD wholesaler based on your market position and goals.
If you are looking to save as much money as possible with wholesale orders, you may want to look into a new wholesale hemp seller. They tend to discount the prices of their CBD products as they look to create a larger customer base.
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 advantage 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 have finally chosen the one you're going to work with, congratulations! But before you commit to a deal, always remember to check your vendor's shipping policy.
- How fast does the seller ship, and by what means?
- Is there a guarantee of on-time delivery?
- How will your CBD be packaged to remain pure and powerful?
- Who is responsible for the shipment in transit and who pays the bill?
Bonus tip
Do not hesitate to ask for quotes, and never forget to compare the different prices offered. It is wise to keep this function as a last filter after you have shortlisted different sellers. Filtering prices first may exclude legitimate sellers of pure and potent hemp or allow you to make overpriced offers.
When it comes to pricing, think about what you're going to spend to get the CBD delivered ready for consumption. For example, are you looking for CBD flowers that still need to be processed or tinctures that are white label ready?
Did you know that Naturalpes is also a wholesaler? Are you interested in becoming a CBD entrepreneur? Or maybe you just have more questions or need more information? The Naturalpes team is at your disposal and we will be happy to answer you.