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How to Become a CBD Oil Distributor

By Ryan Goo | May 24, 2019 in CBD Blog | 9 min read

Warehouse containing CBD products

CBD or cannabidiol has been exploding ever since the Farm Bill was passed in 2018. The Farm Bill legalized the sales of CBD products and available to the average consumer over the age of 21. Yes! As long as hemp products are thc-free, everyone can sell. There are certain state restrictions, see our CBD state laws for information on your state. Everyone can enjoy the benefits of cbd from the new legalization. CBD business owners can take full advantage of selling CBD products in the United States. More importantly, distributors can capitalize on the new CBD market and continue to support a wide spreading movement.

What is CBD?

Our body, and all mammals, are heavily regulated by an endocannabinoid system or ECS for short. The goal of the ECS is to maintain bodily functions such as inflammation, anxiety, quality of sleep, pain, and more. When we supplement our body with CBD, our ECS is able to interact and receive stimulation from CBD. This is because CBD shares a similar molecular structure as the natural cannabinoids that our body produces. Cannabidiol is one of the many cannabinoids found in the hemp and cannabis plants. When we extract CBD with other cannabinoids, we refer to this product as full spectrum CBD.

Research is still new, but cannabidiol based products have been making waves in the medical industry. For example, the FDA recently approved the first cannabidiol based drug called Epidiolex. Cannabinoid base products have a bright future ahead!

Why sell CBD?

CBD hemp has sparked the interests of many consumers. Before the Farm Bill passed, the market for CBD had many stigmas of if it was beneficial or safe. With the FDA and government backing CBD, people have been showing growing interests in alternative health options.

  1. Everyone can use it! CBD products can help all ages, from little children to the elderly. Pet based CBD products are also becoming very popular. It can also be applied to a wide array of issues since the endocannabinoid system associates with all bodily functions. This means that CBD products have many uses unlike many niche products in the health industry.
  2. CBD is a lifestyle.CBD is integrated into everyday life, not just when you're feeling under the weather. CBD helps promote a healthier lifestyle; it's usage promotes fitness, diet, and functionality.
  3. Consumers are willing to pay for a quality product. If a customer needed to see a doctor, would they choose a cheap doctor or an optimally priced doctor? Most customers would ensure they pay the amount needed when their health is involved. There is too much risk. CBD is in the same category.
  4. The market is continuously growing. There are still no big ball players right now. There have been some deals made by major retailers. However, most CBD products are still sold at local stores. Customers in the health industry love to buy from trusted stores. Creating that first relationship and being the first seller of CBD can create an everlasting customer.

How to choose a company

There are a lot of up and coming CBD companies in the market that are looking to wholesale cbd. With the growing interest of CBD and hemp oil, many companies have tried to capitalize on it. Some companies have put out their best effort to ensure the customers get the best product. Others have tried to push out product as fast as possible in order to capture the hype. This means that shops should be particular with the brands that they carry. Since CBD is still very new, customers can be volatile with their decision making. Finding a reputable brand is very helpful to ensure happy and returning customers. Here are some steps to choosing customers.

Steps to choosing a CBD company

Follow our guideline below for finding the right company to work with. These steps are important to follow to ensure you pick a brand that will sell well. The following list contains points that most consumers check for before buying a product.

1. Do they have a quality product?

This is going to be the basis of your interest. Maybe the company sounds good, looks appealing, has great marketing, but the most important thing is the company guaranteeing a quality product. CBD is new and there is still a lot of things that customers may be unsure about. You want to ensure there is trust between the product and the customer and that everything that is stated is provided.

Make sure that the product matches up with the lab result. That is key to backup your product. A product should mention whether it's full spectrum or CBD isolate. Another important aspect of the product is if the pricing matches the product. A product should be well priced to be affordable yet represent the product's quality.

2. Does the company have reputable lab results?

Lab results are the heart and soul of CBD products. Having quality third-party lab results shows proof that the products are legal and are held to federal standards. One of the main concerns is the amount of pure CBD in a product and if it meets the required legal limit for THC.

There are also many other cannabinoids contained in full spectrum CBD oil that customers are looking for. The last thing you want to be questioned about as a distributor is your legitimacy. Lab results should be clear cut and easily accessible. Lab results should be performed from a third party company to ensure that there is no tampering or false information. Customers want full transparency with ingredients to ensure their health isn't in question.

3. Does the company have a good system and customer care?

A company should provide you with all the information and products you need. Their website should be well put together and reference everything they have about their product. Think of a website as a shop you'd go and visit. A well-made website helps represent their product. A customer might want to go back to their website and search up the cbd oil products they are interested or bought. If there are any problems with the product that you might not be able to address, a company should have a customer care system that can help any issues. This is essential since the industry is new. People are always looking for answers.

4. Is the brand active?

Selecting a brand can be difficult. Good brands are active on all platforms. You want a brand that is keeping up with times! This means having a social media presence in order to connect to their audience and customers. Why is this important? It shows they care and understand the market. They are outwardly helping you market the product. The more presence they have, the easier it will be to attract customers to your product. Companies that have good followings and engagement are usually more successful.

Steps to becoming a CBD distributor?

Follow these guidelines to get set up being a distributor.

1. Decide where you'll sell

Are you going to be selling your products as an online cbd oil business or a brick and mortar retail shop? There are different perks for selling products on different platforms. Online or e-commerce gives you the freedom and flexibility of creating your own website. By selling online, you are able to reach a wide range of audience and locations. Online shops use social media and blogs to help boost their performance. Retail shops, on the other hand have the convenience of being hands on. By having a retail shop, you can connect and engage with customers and provide products in person. Retail shops can be strategically in high foot traffic areas. They can be optimized to help sell your product and establish your store in the community. Selling in-house gives you full control and lets your customers have real in-person conversations with your staff.

2. Apply for licenses

The great thing about the hemp industry is that there are no special licenses needed to sell! After the Farm Bill had passed, all sales have become legal. This means that sellers do not have to apply for any special license. The only thing you need to do is to obtain a standard resellers license for an online store. For retail, you would just need to be a legal business. Even though CBD oil is federally legal, make sure to verify with your state and local laws to ensure that you are within their requirements.

3. Pick a company and sell

After you've decided what type of platform you will sell through, the next step is to fill your store with product. This means selecting companies that will fit your store, price point, and needs. The company should be marketable and have some type of presence. The prices of the product should both give you a good return as well as fit your customer's needs.

For example, if you are in a high-income area at a retail location, you can take bigger risks in having higher priced items. A store should have a well-diversified amount of products. This doesn't necessarily mean to carry as many brands as possible but providing a wide range of product. It is helpful when a store has a focal point of brands they want to push. This is because they are reliable and you might have more knowledge about that brand. Also, the pricing might be better for you. Urbul's online wholesale platform allows you to purchase 24 hours a day 7 days a week.

What products should you carry?

As a store owner, the best way to gauge what products you might need is to see what your customers need. There are certain products that are staples in the CBD industry such as CBD oil tinctures, CBD gummy bears, and CBD vapes. Customers appreciate receptive stores that cater to their needs. Customers may want skin care products with CBD extract. Finding out personally would be the best method of stocking your store with product.

Even though CBD may be expensive, there is a price point that can fit every consumer need. Basing products off your store's current price points can help with figuring out which products to purchase. The best thing to ensure is to always stock your inventory with the highest quality products available.

Why Urbul?

There are so many brands that are trying to hit the market. One of the biggest aspects is reliability and that is where Urbul excels at. All of Urbul's products use high-quality cbd oil and have certified lab results and are batch tested. All of the lab results are posted and easily visible. This is key in the CBD industry and creating trust between the consumer and the seller.

Urbul's products are well priced and use the highest quality CBD. One of the common issues companies have is carrying different products at different MG. This can confuse customers into thinking that at certain price points, they are overpaying and not receiving enough. There are many established and big name brands. However, many stores should diversify their shelves to provide a selection of products to their customers.

Many customers appreciate up and coming brands because these type of brands have something to prove. Smaller brands are willing to earn their customers trust. Urbul is willing to do that by providing the best CBD oil and affordable product.

Visit Urbul's CBD wholesale page to get started!

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