The concept of buying and selling marijuana. A green cannabis leaf sticks out of hundred-dollar bills, rolled up with a tube and an elastic band on a white background. Isolated.

The global market for the CBD industry was only $270 million in 2018 but is expected to reach $3.8 billion by 2025. With such enormous growth on the horizon in this market, you have the opportunity to create a profitable CBD retail business. But you will need to partner with a reputable wholesale CBD distributor to succeed.

Know CBD Basics

You’ll need to be clear on some details concerning the CBD industry. Here are some need-to-know details:

  • THC gets people high. CBD does not.
  • CBD oil and hemp oil are not the same things.
  • Since CBD is in a gray area legally, you’ll need to investigate the laws.
  • The FDA is waiting for more CBD research data before they approve it.
  • The World Health Organization (WHO) has already proclaimed CBD safe for consumption.
  • Most CBD is extracted by heat extraction methods or by solvent methods.
  • CBD is most commonly purchased in tinctures, oils, topical creams, and many edibles.
  • The known health benefits are incredible.
  • CBD isolate and full-spectrum is not the same thing.
  • People give CBD to pets.

Know Who the Producer Is

What is the history of the wholesaler you are considering partnering up with? Are they farmers or engineers who understand the entire process of cultivation and distillation? Or are they just entrepreneurs wanting to make a quick buck?

Know Exactly What the Wholesaler Is Selling

Hemp contains less than 0.3%, which is legal. CBD products that contain 0.3% or higher of THC are federally illegal. They are also illegal in states that do not have medicinal marijuana laws.

If your wholesaler sells you CBD that is high in THC, you may be breaking the law when you sell it. You may also be liable for making your customers high. A customer who unexpectedly gets high could have an auto accident or lose their job if tested positive for THC on a drug screen.

You want a wholesaler who sells CBD products that have been made from organically grown hemp that do not contain pesticides or insecticides.

Known as full spectrum or broad-spectrum, products that contain several non-intoxicating cannabinoids plus terpenes and flavonoids are more effective than CBD alone is. So, you want to make sure the products you purchase contain CBDA, CBC, CBN, and CBG plus terpenes like Alpha-Pinene and Linalool.

Make Sure the Wholesaler Includes Third-Party Lab Reports with Their Product Batches

It’s expensive, but you’ll need to use a wholesaler who provides you with third-party lab reports with the products they sell you. It’s the only way you’ll be 100% certain that the CBD products meet the needed quality standards.

Consider Pricing Matters

Pricing is usually done on a scale, so the discount you get depends on the total purchase price of the products you purchase. For your long-term profits, you need a wholesaler that will offer you price breaks for bulk purchases. You can expect to find wholesalers who will give you a 50% discount, so walk away from the cheapskates who only want to provide you with 15-20% off.

Consider the Type of Product

Look at what products the wholesaler sells to see whether the products line up with your target market. You’ll want to stick with the mainstream items rather than leftfield items. Balms, vape juices, edibles, and CBD oils are mainstream, best sellers.

You’ll eventually want to offer a wide range of products at all different price levels. But you don’t need to carry many 2,000 mg+ CBD products for the few wealthy customers who would purchase them when you are first starting your business

Hold Out for Fast and Free Shipping

The speed with which you can get products out to your customers will determine whether or not your customers will buy from you again. So, you need your wholesaler to come through for you in case you have to fill orders with products that you don’t have on the shelf. It should only take a wholesaler a few days to ship items to you. Get a different wholesaler if your current wholesaler says it will take them a week or longer to ship you the goods.

You’ll know you’re dealing with professional people who are looking for a long relationship with you if you find a wholesaler who will ship your products free of charge, just to sweeten a deal. The bottom-of-the-barrel ones may charge you an extra amount to ship you your order.

Get a Sample and Examine the Packaging

You will need exceptionally high standards to succeed in the CBD industry, so you need your wholesaler to have equally high standards. One way to know a wholesaler further is to look at samples, paying close attention to the quality of packaging the wholesaler uses. Is the package well-designed, or are the products lying loosely in the package? How easily can the products be stored? Does the packaging appear to have been fished out of a bin or better-taken care of?

Make Sure the Wholesaler has Excellent Marketing Tools You Can Use

Having perfect products is one thing. Having adequate marketing tools to successfully market them is another. You want to inform consumers about your products and about CBD in general. You also want to make prospects curious and eager to buy from you.

Competition in the CBD industry is strong, so you need a wholesaler who would help you to succeed. So, ask yourself:

  • Does the wholesaler give you free samples you can give to prospective customers?
  • Does the wholesaler provide banners and signage?
  • How about educational materials or brochures?


There is no room in the CBD industry for poor quality products, slow service, or poorly packaged products. You’ve got to have a quality product. You must also partner with a wholesale CBD distributor who cares enough about your business to provide you with adequate marketing tools. Your business will only be as good as the products you sell and the effectiveness of your marketing efforts.

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