Thanks to the legalization of cannabidiol or CBD, it has become of the fastest growing products on the US market in the past decade. Thanks in large part to the 2018 Farm Bill, which legalized industrial hemp which is a primary source for cannabidiol, CBD products have now become widespread across most of the country. That means CBD oil wholesale is becoming a big business with plenty of room for growth.
Keep in mind that while many states have responded positively to CBD, the federal government still has rules and regulations which place limits on its sale. Still, CBD is different compared to cannabis, which means that the room for growth is considerable. You will need to be aware of what you can and what you cannot do in terms of getting into this market.
The Law Concerning Industrial Hemp & Cannabis
While seemingly similar at first, it’s easy to say that the differences are night and day between these two products. It is true that both hemp and cannabis or marijuana have CBD. However, with cannabis also containing THC, which is the psychotropic compound that causes the euphoria and hallucinations to occur, the restrictions on marijuana products are far stricter in comparison.
Industrial hemp on the other hand has little to no THC. Plus, the hemp can be used to create a wide variety of products that include textiles, rope, food, and biofuel which is also a growing industry. It’s also important because CBD that is derived from industrial hemp is far easier to market compared to CBD which comes from cannabis or marijuana.
This is because marijuana is still illegal at the federal level. This means that even if it is legal in your state, selling it outside your state falls under federal law known as the “commerce clause”. This means you could get into considerable trouble for selling an illegal item which carries a felony charge at the federal level.
The restrictions against industrial hemp are far less severe, but keep in mind that in certain states it is illegal to grow. You will need to check your state laws concerning the growth of industrial hemp before you get started. Plus, you will need to keep any THC present in CBD to a .3% level or less. Otherwise, it is considered illegal to the federal government.
Now that you know the law about CBD products, you can start up your business by deciding just which area to emphasize. This means a wide variety of choices from being a CBD oil wholesale marketer working with other businesses or supplying consumers directly with products that contain CBD.
Grow Industrial Hemp: If wholesale is your focus, you will need to get a license from the state to grow industrial hemp. In addition, you will need enough land or area to grow the hemp properly and extract the CBD oil for sale. It’s a lot of work, but if you can establish yourself as a reputable CBD oil wholesale company, then you can reap considerable rewards.
Purchase Wholesale CBD Products: This is a popular option for those who want to get into the CBD business with minimal effort. There are companies that sell CBD products wholesale, so you can resell them to the consumer market. There are a wide range of popular products that are infused with CBD oil that include, but are not restricted to the following;
- Snack Bars
- Dog Treats and More
You can choose from branded products or non-branded so you can put your own name and identification on it. Going with a private label is generally better in the long run.
Become Part of the Hemp Industries Association
This is a trade group designed to bring together farmers, business owners, researchers, and others in the hemp industry. The reason why you join is to make connections to help grow your business. It also means having access to conferences, summits, and other information that keeps you ahead in the field.
High-Risk Merchant Account
Arguably the biggest issue you may face is getting a process payment account so you can have sales transactions. Many banks are not willing to help you set up such an account because as the name implies, your business is considered high-risk. You will have to pay more and have less flexibility compared to industries that are considered low risk.
Worse, any minor infraction might shut down your account. You will need to have everything ready, which includes taxes, licenses, and any statements that may apply. The more organized you are, the better your chances of landing a process payment account. Be sure to shop around for the best deal in terms of what you need along with what you can afford.
Last, but not least, you will need to market your products. Once you get to this stage, everything becomes straightforward as you are selling to consumers or other businesses depending on the type of business you are running. This means putting money into your marketing efforts which includes;
- Building a Proper Website
- Becoming an Authority in the Market
In other words, many of the attributes of successful businesses applies to CBD products as well. This means that if you employ solid strategies, you can build up an audience for your products that means repeat sales and expanding your company.
Being successful in selling CBD is not going to be easy despite the advantages of being in a high-growth market. But if you do the research, decide which type of business works best, make the connections, and employ solid sales strategies, you will be on your way.
Today, CBD products are hotter than ever which means that the sooner you get started, the faster you can make money in this business. Selling CBD oil wholesale or taking advantage of wholesale supplies opens up a massive opportunity for those who want to get in on one of the fastest growing industries in the US.