CBD Wholesale: 7 Buying Tips
Make hay while the sun shines. It is around that time when many hemp farms start reaping what they sowed for the season. For a knowledgeable CBD entrepreneur who understands demand and supply laws, this is the best time to grab CBD wholesale offers. Yes, despite the raging pandemic, prices will be relatively low in the coming weeks.
Now that business is moving online; you will find many CBD wholesale offers through the web. It feels like ordering home delivery pizza- fast and straightforward. However, you might relate to pizza delivery disappointments like lateness, expensive delivery cost, wrong delivery, or less cheese than you ordered.
So, we created seven ultimate tips to guide you through the murky waters of a tough CBD market. Off to the first one…
Learn CBD wholesale and become a market authority
Do not be like John.
John read online that the CBD industry was valued at an impressive USD 4.6 billion (about 3.9 billion Euros) in 2018 and that it was set to grow through 2025 with a compound annual growth rate (CAGR) of 22.2%.
Sparked by the urge to become an instant hit as an entrepreneur, he pieced together a shallow business plan without understanding what CBD is in various aspects. All he wanted was a quick buck.
Poor John could not make enough sales to avoid huge losses that rendered his cannabidiol brand dead on arrival. The heavily regulated CBD market and dynamism were too much to handle.
You need to learn the nitty-gritty of CBD. If you are planning to enter a new market, beware of breaking in and building a sustainable hemp business. Only then are you ready to take advantage of the harvest season by ordering wholesale CBD.
Among the many aspects of CBD that you need to understand before CBD wholesale ordering is compliance with laws in regions where your business is involved. Hemp laws vary from state to state, province to province, and even district to district.
A good example is the THC requirements for legal hemp. You see, THC being a psychoactive compound, is scheduled in most jurisdictions. Only a bunch of 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 regarding THC limits?
- Does your CBD wholesale order tick all the legality boxes in your target market?
Hemp is so much talked about now more than ever. Law enforcement agencies have since pulled up their socks in regulating the sensitive market. Without compliance, you will be digging your own grave, awaiting law enforcers to bury you in.
Matching your target market
Let us talk about your business plan. Who are your buyers? What is your target market, and what does it require of you? Here is an example of why you need to match your target audience when it comes to hemp products.
In 2017, the World Anti-Doping Agency (WADA) removed cannabidiol extracted from hemp from its banned substances list for professional athletes. However, the agency still prohibits all other cannabinoids, including THC, that athletes are screened for regularly.
So, if your brand targets professional athletes, you should steer clear of any hemp extracts or processed products with any amount of THC- even when the legal limit is adhered to. That is the essence of understanding your market and matching it when ordering CBD wholesale products.
Are you buying quality wholesale CBD?
One essential quality that is being eroded in the world of hemp today is transparency. Hemp is a unique plant. How? Farmers plant hemp seed, which can then turn out to be hot hemp when ready for harvest. Hot hemp is destined for destruction due to higher than required THC. That means a whole season’s loss to the producer.
Rogue sellers will easily trick you into affordable hemp that does not meet your requirements. There have been cases of CBD market surveys unearthing products that had more THC than the legal limits or low CBD than advertised.
To beat such deceptive adverts, here are pointers to guide you.
- Is the hemp organic and non-GMO?
- Was it planted indoors or outdoors?
- Which country was cannabis grown in and what are the local or state quality assurance protocols?
How can you figure out the answers to these questions? Read the sellers’ online presence and filter the red flags. Next, you can check with local authorities concerning the licensing and quality assurance of the seller. Finally, have a keen look at the certificate of authenticity if present. You can also get a sample of the CBD products and have it analyzed in a reputable and independent laboratory.
Buyer behavior is changing thanks to reliable internet availability. A 2018 report showed that more buyers read online reviews before buying products– online or in-store. There is every reason for this.
Online reviews tell you what other past buyers think about the seller and the business experience. You will be able to answer questions like:
- Is the seller a fraud?
- Does the CBD supplier precisely deliver what is bought in the agreed time?
- How easy is it to work with the seller?
- Are there any challenges in CBD wholesale orders, and if present, how did the seller address them?
Where can you get such reviews? Some brands choose to incorporate customer feedback on their websites, while clients have evaluated some on different websites. If you miss all these, how about the seller’s social media pages?
One thing- beware of fake reviews as part of online PR.
Large company vs. Small company
After the pandemic, most businesses are barely on their feet. Saving every penny possible is what most companies are going for. You should evaluate and decide your potential seller in relation to your market position and goals.
If you are looking to save as much with bulk orders, going for a startup bulk hemp seller will be a great idea. They have low priced CBD products as they look to build a larger portfolio of customers.
However, if your pockets run deep, you can choose to bulk order your CBD from an established brand. It will set you back more but here is why it can be a game changer. Associating your brand with an established producer gives you the cutting edge against your competitors. You can easily turn your seller’s brand to be an influencer of your own.
You have scanned through a plethora of sellers and finally selected the one to work with, congratulations! But before you commit yourself to any deal, never forget to look at your seller’s shipping policy.
- How fast does the seller ship, and through which means?
- Is there a guarantee of timely delivery?
- How will your CBD be packed to remain pure and potent?
- Who is responsible for the shipment on transit, and who foots the bill?
Do not shy from asking for quotations, and never forget to compare different offer prices. It is wise to keep this as your last filter after shortlisting different sellers. Filtering prices first may lock out legitimate sellers of pure and potent hemp or get you overpriced deals.
Talking about the pricing, consider what you will spend to get the delivered CBD ready for consumption. For instance, are you looking for CBD flowers yet to be processed or ready tinctures for white labeling?