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Some More Insights on Operating in the CBD Oil Market




Hello there.

Hope you enjoyed my previous article. What’d you say? You haven’t read it? Alright, click on this link then. It’ll take you to that article.

Now it’s been only a couple of days since I published it. And I’ve been receiving a barrage of emails. Readers are coming up with new queries everyday, and the way they are phrasing those queries is making me wonder whether they think I am a distributor myself.

I am not. Just to clarify.

I was wondering why the previous article got so much praise. Was it because it had a “To be continued” type conclusion. Bingo. It means people who visit this site are hungry for information. It also means I am supposed to stuff the present article with new insights – insights related to CBD oil’s prospect as a consumable product.

And your prospect as a wholesaler.

Know thy manufacturers

When you are in the wholesaling business, knowing the people or the companies who manufacture the oil is more important than knowing thy neighbors. Things are easy for you if your partner can take care of all the manufacturing needs of the product,. If they don’t or if you are operating solo, get acquainted with the manufacturers.

Its benefits include:

  • Getting a first-hand knowledge of how CBD oil is made. Gaining manufacturing knowledge might come handy in the future as you might one day decide to open your own manufacturing unit.
  • Manufacturers follow every regulation enforced by the state. Working with them means getting familiar with laws governing CBD usage.
  • You get to know how the end-product is prepared and also what ingredients are used in it.

In short, the closer to them you get, the better. In terms of gaining knowledge, in terms of future business possibilities.

Is the product organic?

If you are selling to end consumers, be ready for this question. And people asking this will probably not buy the oil if your answer is in the negative. Sounds unfair but consumers today seem to have a fetish for everything herbal and looking at that, most consumer product manufacturers are going this way.

This means two things:

If you are handling all the manufacturing works yourself, don’t put anything into it that is not made of herbs. If you have partnered with a third-party oil producer, make sure they only sell herbal product.

Second, mention it clearly in the label that the oil is made of herbal ingredients. Don’t see it as a customary step to toe in line with the herbal fad. Rather see it as marketing material. It’s not very hard to produce herbal CBD oil. Just make sure there’s no additive. That’s all.

Check the price

There’s no standard price for CBD oil. Price varies between states and depending on whether the oil was made of hemp or cannabis. Some states have lax marijuana consumption regulations. Price will be a bit cheaper in those states. Price is on the higher end of the spectrum in states where the production and/or distribution of the oil requires too many red tapes to overcome.

Contact the manufacturers to get a clear idea of the pricing. Normally, manufacturers don’t reveal the wholesale pricing unless a distributor shows interest in partnering with them. So directly contacting them is the best way to gain insight into this. Another way is to check the pricing from other wholesalers.

Various categories of CBD oil are available in the market. The categories are based on consumption techniques and include vape oil, edibles, tinctures, salves, etc. Some even buy CBD oil for their pets. Price depends on product categories. Edibles are typically a bit more expensive than tinctures.

Understand bulk buying

When we think of buying something, we think of buying as an individual purchaser. But when wholesalers buy merchandise from manufacturers, they buy in a bulk. Now as a wholesaler, you’ll want to have your private label on the product. So talk to the manufacturers or if you are into reselling, the wholesaler who’s bulk selling you.

The agency selling you the oil must offer dropship services. Ask them upfront whether they’ll ship it to your preferred location. It’s important because if they can offer dropship service, that means they provide warehousing service too.

Resellers and wholesalers spend money unnecessarily on storage and warehousing. Dropshipping saves them from such uncalled for expenses. A side benefit is that you can keep your customers updated about the delivery of the product through the tracking code issued to you.

Summing up

It’s easy to grasp the difference between retailers and manufacturers. But between wholesalers, resellers and distributors – not so much. These terms are often used interchangeably. As a wholesaler, you need to define your territory and excel in everything you are doing. The insights shared here will give you an edge in that.


Business in Mind? What CBD Enthusiasts Need to Know




CBD oil is lately in the news for its ability to offer miraculous recovery to people suffering from chronic diseases. Despite CBD gaining traction, many are still unaware of it – largely because most of us, it appears, are interested in consuming CBD, but not so much in making money with it.

This can change and CBD’s business potential can be a catalyst to the much desired change.

The misbelief that CBD production is illegal is only partially true. States where marijuana consumption is prohibited have no law that legalizes CBD consumption or its production.

But cannabis is legal in way too many states. Take a look at the infographic below:


If you know how to count, there are more than 20 states where you can consume marijuana. Residents of these states can dig into CBD oil production and pad their pockets.

Below I explain how:

Become a wholesaler

If you think there’s no such thing as a CBD wholesaler, you think wrong. I agree that the term “wholesaler” is not widely used, and distributor is a more common and familiar expression, but the two mean the same.

Now in order to profit off of CBD distributorship, you first need to

Study the industry

The CBD industry is more prolific than you think. Plenty of distributors are there in the USA. If you can hook them up as partner, profit will begin to roll in in next to no time. Study how the industry functions, what demographics of people are the buyers, what percentage of people use CBD for healing purpose and what percentage for other purposes, who are the major players, and stuff like that.

Partnership or standalone

Once the market is thoroughly studied, next you got to decide whether you are resourceful enough to go on your own or need a partner. Resources, in this context, are the money you are going to invest, contacts, knowledge in CBD oil production, and very importantly, marketing.

Benefits of proprietorship ventures

The biggest benefit of proprietor distributorship is you don’t have to share profit with anybody else. That’s elementary, but is there anything beyond that? And anything that touch bases the exclusivity of CBD oil as a consumer product?

Yes. Fortunately, there is. When you are a CBD distributor operating entirely on your own, you get to know a lot of end-consumers who buy the oil from you. The majority of those consumers will be patients. Create a registry of them where their names, contact details, name of the ailment they are suffering from and the dates they are purchasing the oil from you are all mentioned.

Then after an interval, collect feedback from them. Include the feedback in the registry. Sell the registry to diagnostic centers and medicine companies. Create a separate registry with positive feedback and use it to broaden your marketing orbit. Of course, seek consent from the patients before doing all these.

Now, having a partner can make it difficult for you to use customer data as a sales or marketing leverage. He may have another “great” idea, which you may think is trash. Besides that, closing down a partnership business, especially distributorship, could be hard. As cannabis belongs in the grey area of legality, you might – on a brief notice – have to shut down your operation. But your partner might refuse to close down and keep chasing the proverbial carrot.

CBD wholesaler partnership benefits 

Partnership may have few cons, but pros can outweigh them anytime. It is starting with custom labeling. Partnering with a reputed distributor can make it easy for you to introduce your own brand of CBD oil. That said, not all distributors allow for custom private labeling. So pick wisely.

Next is quality assurance. We know how important it is for a product-based business. Partnering with a CBD distributor – preferably a large one – enables you to lab test your product as large distributors have multiple laboratories.

Having a partner can ease off warehousing, packaging and shipment. Handling all these alone is one heck of a job.

I am ready…

Congratulations! You’ve studies the market well, found a partner/taken everything on your shoulders, and now you are all set to move ahead with the plan.

Good luck. Just remember the protips listed below and you and your business will be safe:

  • Never sign any agreement without a nod from your lawyer.
  • The business attorney you hire must be paid from your company’s account, not from your personal account.
  • Keep yourself updated with the latest cannabis consumption laws of your state.
  • For international orders, check if CBD oil is legal in the country the buyer is from. Decline the order if it is not.

Follow all these protips like general rules of thumb and your business will be far, far away from legal hassles.


CBD’s business potential is tremendous. One article may not be enough to cover all of it. But if you are a newbie, thinking of testing the water, this article can be your guide.

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