Business today is easier and faster than it was decades ago. Today, you can have a successful, profitable business without any staff, office, manufacturing plant or store. This is made possible by technology, and some magic called private white label wholesale suppliers. Some of the biggest online stores have in one way or another engaged with suppliers that have a white label agreement with manufacturers.
Private label product wholesaling involves an agreement between a wholesaler or retailer and a manufacturer. It means that a product is offered to another company unbranded, and the wholesaler/retailer can use their own brand on the product.
If you are passionate about building a business selling organic CBD oil in bulk but may not have the capital to manufacture, test and license it yourself, private white label business is the solution for you. If you are just starting out, you need to get the basics right.
There is a difference between white label products and private label product. Both terms refer to products made by one company for branding and sale by another. While private label means that the product is made exclusively for you, white label means that the manufacturer sells the same product to several other wholesalers. With private label CBD oil, you can be able to customize your product and request the changes you would like your brand to be associated with. White label products may look generic, which can confuse your target market.
There are reputable manufacturers and wholesalers who offer both white label and private label CBD oil. If you are an expert in it, you can reach out and get a sample of what they have on offer. If the quality meets your standard, then you can hold a discussion on how sales will be done. If you would like to add a few tweaks, you can always go for private label. A private label CBD oil will allow you to build your own brand around the quality you prefer, and charge a premium for it. White label and private label products are perfect for drop shipping business.
CBD oil industry is the current global trend, with experts predicting that it will hit the $20 billion mark in 2020, and $22 billion in the following 2 years. The truth is that cannabis is a cash cow – the demand is high, and still burgeoning with new users who have found it perfect for health and wellness. Investors such as World High Life Plc are sweeping in to take the industry even higher. As such, it is only wise that you look for a way to get your share of the billions. Being a distributor is one of the best ways to cash in on the craze. Here are 7 steps you can follow to become a distributor.
Before you get into the industry, you need a well thought-out action plan. When writing your business plan, there are some areas that may need a lot of attention. Some of these issues are as follows.
The costs involved in starting and getting the business going are a major issue. Financing is one of the biggest challenges that a business owner must overcome in order to set up shop. Two of the main costs of starting an online natural CBD oil company are research and stock.
For starters, you need to research extensively about getting the right supplier for your product. By the right supplier, it is important to pay attention to quality, quantity of order, the prices, payment options as well as customer service. Watch out for companies offering unproven Promises.
You will need to set up a quality distribution channel to get the good quality product to your target market. You also need to think about whether to keep your business exclusively online or have a physical store.
Think about your target clients and craft a marketing plan to reach out to them even before you open up shop. The good thing is that you already have a head start – the market for health and wellness is already huge. However, you will need a way to differentiate your product and send out word to your target customers.
For starters, you will need a good website where your customers can get educated about the products so that they make informed choices. The website (in addition to other online platforms) must be easy to use, inviting and present the product in clear visuals. Be sure to have a presence in all online platforms where your target customers frequent.
The financial plan is the backbone of the business. It is important to note that new businesses do not break even on the second day. As such, have a plan on how to keep the business soaring before it breaks even and profits start to roll in. Make a plan for projected revenues – be sure to include as many expenses as you possibly can so that your estimates will be almost accurate.
The cannabis business is huge! As such, choosing a brand should be a pretty big deal. The first part of your brand should be choosing a business name. Your choice of business name should send a message to target customers that you are an expert in CBD oil business, and that they will get high quality products when they do business with you.
Some of the characteristics of a good business name are that it sticks easily in the mind of target customers, and it clearly communicates the product and its benefits. Once you have a list of your preferred business names, test them on search engines. With Google Adwords, for starters, you will know if there are other companies operating with each name.
Decide whether you would want to open a physical shop or operate online. If you choose to do business online, be sure to set up your ecommerce shop well. You can talk to other business owners and learn from their experiences. This information is readily available on online platforms.
First things first; CBD oils are legal. This is not to say that it is legal to grow your own marijuana or hemp. The producers must obtain licensing and permission to carry on their duties. CBD oil sellers in UK are required to have a medical distributor license unless it is being sold as a supplement. If you decide to sell CBD oil as a supplement, the package must be clearly labeled according to the rules laid out in the Food Supplements Regulations of 2003 (England).
When choosing how you would like the oil packaged so as to adhere to the set laws, think of the versatility of the oil. CBD oil can be packaged and consumed in different ways. To give you an idea of the different products that you can trade in, here are some options for different lifestyles.
This wide array of products has equally differing compositions. This means that you can sell pure CBD oil or products that have a few other ingredients added in. In this regard, it is important to note that legal pharmaceutical grade CBD oil should have THC level of 0.2% or lower.
Needless to say, quality concerns are making the market jittery. These quality issues arise on these two occasions; the additives and the testing. Depending on the lifestyle to which your brand appeals to, the oil you sell can include a range of other ingredients. However, everything that goes into the market must be dully tested and licensed to avoid legal action. FDA has taken action against 17 companies that give false information about the product.
Here is the fact; cannabis is made of hundreds of cannabinoids, THC and other compounds such as flavonoids and terpenes. Some of these compounds such as terpenes are known to have the same soothing and health packed effects on the human body as CBD. Flavonoids are known to protect against disease, and can also be found in some fruits and green tea. Some CBD oils can have a small percentage of any of the other cannabis derivatives. It is important to know exactly what you will be selling so that you package it according to state regulations.
Keep in mind that CBD oil may need carrier oil for preservation and stabilization. The oil can also be cold pressed. Therefore, be sure to understand how all these ingredients interact with each other so that you know the quality of CBD oil that you will be selling.
Third party testing means that the CBD oil has been tested by a laboratory that has no stake whatsoever in the product. While the Medicines & Healthcare Products Regulatory Authority only regulates CBD products sold as medicine, CBD food supplements are not regulated by government agencies. However, if you sell anything that would be construed as risking the lives of the public, you can be charged and your business shut down.
When dealing with a manufacturer, be sure to always ask for reports from unbiased third party labs. The lab reports come with a Certificate of Analysis mark in the form of a QR code. You can scan the code on your phone and get all the information you need about the oil. Here are some facts to pay attention to.
• Accuracy of the information on the label
• The cannabinoid profile
• Lab charts on other issues such as pesticide and heavy metal analyses
If you intend to sell online, be sure to adhere to the global regulations. There has been a lot of concern globally for the quality of CBD oil in the market. FDA will shut down any sites with false or unproven claims made made by any seller. Therefore, to avoid a tassel with the FDA, it is best to work with reputable CBD oil manufacturers to private label the product you wish to re-sell.
Pharmaceutical Grade Products