The CBD Supplier Complete Checklist: 9 Things You MUST Consider
So, you have decided to be part of the fast-growing CBD industry but aren’t sure where to start? In this post, we’ll share a checklist with things to consider before choosing a CBD supplier and a quick overview of the main business models entrepreneurs can choose to get started.
Why Is a CBD Business Worth Considering?
The demand for CBD products is rapidly increasing all around the world. However, many misconceptions and questions about their use still remain.
Displaying and selling cannabidiol-derived products will surely be a conversation piece, giving you the chance to inform people about CBD and its many benefits.
So, what content and supply management platform should you choose? Should you have your CBD products in a brick-and-mortar shop? Would you start an e-commerce site, an educational channel on social media, or become a CBD supplier affiliate?
There are many levels of involvement and CBD business options for everyone, let’s take a quick look at some of these;
The Main CBD Business Models
Passionate about sales? Why not find a supplier and become a CBD products retailer.
If this option appeals to you, you have a few avenues you may follow. Open a shop to sell CBD products, add a CBD display to your existing store, or start an e-commerce site.
Investing some money to open an actual store with an inventory is always an option. After all, this has been the old-school way of going into business for ages.
Unfortunately, there are always risks associated with new businesses. They require an upfront investment, you need to establish a customer base and make people aware of your store and the likes. With global health issues still not behind us, such financial risks need to be carefully evaluated.
Or maybe you already own a store and want to add some variety to your inventory that might appeal to your customers. Now that’s another story altogether.
Including a CBD product range in your store will surely grab the attention of your regular customers, as well as appeal to new ones. Ideally, you would want to be one of the first establishments to offer a choice of CBD products in your area. A CBD display would perfectly complement a health store or a cosmetics, fashion-related shop.
Running an Online CBD Shop
As hinted above, third on the list is creating an online shop for your CBD products. With this option, your overhead costs are much lower. Still, you will need to find a wholesale supplier and invest in creating a website, promotion, purchasing inventory, and ensuring storage space to keep all your products.
If you have some experience running an online retail business, this may be a great option for you. In the beginning, it may even be a one-man show, but, as you grow, you can always add workers and space.
There are other avenues too. You may be averse to taking risks, or perhaps your financial situation does not allow for an investment at the moment. In that case, you can always choose to be a CBD products affiliate.
With this model, there’s zero investment, you don’t need to keep any inventory, and you won’t have to bother with payments and shipping. The customer will be directed towards the seller’s site, and you will get a commission from the sales.
However, there's no such thing as a free lunch. As an affiliate, you will need to work hard to market the products, be consistent, unique, interesting, and informative.
Getting traffic to your website or social media profile and keeping visitors interested is not an easy task. It is laborious but can be very rewarding.
And last but not least, and maybe even related to affiliate marketing are...ads! You can be a blogger, a social media influencer, or a YouTuber creating content about CBD products. If you happen to be good at it and have many followers, you can make some money from ads. No investment, no sales, just a lot of creative effort and some luck.
All these alternative routes of being a retailer have one common denominator: you have to choose your CBD supplier very carefully.
After all, you can sell a poor product once, and make money for a short time, but without repeat happy customers you will not succeed in the long run.
This is only the beginning, though. Even if the products are fine, the business practices of your supplier can make or break your efforts. So without further ado let’s get into the nitty-gritty of it.
Choosing The Best CBD Wholesale Supplier For Your Business
1. Is Your CBD Supplier a Manufacturer/Producer Or a Wholesaler/Distributor?
Buying products directly from the earliest point of the supply chain — the manufacturer — is usually the best option. This is normally the least expensive source, as the items haven’t been marked up yet by other parts along the chain.
However, sometimes manufacturers have a minimum order requirement, which can be too high for many smaller businesses. Or, some producers may have an exclusive contract with a distributor.
This may either be a good or a bad thing, according to your particular situation. These “middlemen” buy large quantities from the producer, and although they mark up the prices, they can supply smaller orders that manufacturers don’t.
When you’re in the market to find a CBD supplier, price is a very important consideration. But don’t be fooled and always keep an open eye for a good deal.
If two CBD wholesale suppliers offer similar quality products for similar quantity orders and delivery timeframes, of course, choose the less costly one.
Don’t make the mistake of comparing apples to oranges. Poor quality products in a large order with a late delivery date may be cheaper, but you’ll pay for it in loss of customer satisfaction and sales.
3. Payment Terms
Some CBD suppliers will be willing to give you credit — maybe not for the first order, but with the following ones. Their payment schedule and conditions are essential to consider as a credit line will give you more flexibility as your business grows.
4. Financial Stability
You will want to work with an established, successful CBD supplier, as there are few things worse than your supplier going bankrupt all of a sudden. It’s always a good idea to run a credit check with an agency to make sure your CBD wholesale supplier is not involved in lawsuits or scandals.
If you pay in advance and the supplier’s business goes under, your chances of getting your money back are slim.
As explained above, the quality of the products is of paramount importance. Finding ways to evaluate the quality of the CBD supplier’s products is a good idea. You should ask for samples and customer endorsements.
If possible, ask to visit them at their premises and see for yourself what quality control measures they take. Furthermore, you can do a web search about complaints or court cases involving their products.
6. Minimum Order Quantity
Compare CBD suppliers for their minimum order quantities. Being able to order frequently and in low quantities means you don’t have to tie up a lot of working capital in stock, nor have large storage facilities.
Don’t forget to also compare how much small quantity orders vs. one large order cost comparatively. If small orders are possible but very expensive, you may consider changing your business model.
7. Delivery Time
The faster you receive your products, the better. Some CBD suppliers may prioritize orders according to size or may have a backlog to fulfill first. Yet others may charge extra for faster delivery. These are important, but perhaps the most relevant detail is consistency in delivery times.
If one order you place gets delivered in 2 weeks, and the next one in 2 months, you will have serious problems. A longer delivery time may be preferable if you can trust the supplier to always be on time.
Another concern is the ability of the supplier to fulfill large orders. You may think this is not important if you are ordering a few times — but you'd be wrong.
In an ever-growing industry like CBD, the demand for resellers will definitely increase in time. This may cause an unprepared supplier to delay deliveries or reduce the quality of the products.
9. Customer Service
When you’re comparing prospective CBD suppliers, pay careful attention to how they deal with you.
Do they communicate with you on the phone or via email? Are they polite and clear? Do they sound competent? Do they return your calls promptly? Do they keep their promises?
How To Decide Between Different Suppliers
Once you apply the above checklist to all potential CBD suppliers, you will have a clear picture. A shortlist, so to speak.
As you may have noticed, the topics are very interrelated. Price vs. delivery, time vs. quality, and all other details affect one another. Try to identify the most important criteria for your business and choose accordingly.
For instance, if pricing is far more important to you than other aspects, you could award double or triple marks for this. Adding the total marks you’ve awarded to each supplier enables you to rank the shortlisted ones.
How To Approach a CBD Supplier
In the same way that you’re seeking a financially stable, reliable CBD supplier who you can work with for years to come, suppliers will be looking for the same thing in you. If they’re extending credit to you, they may also run credit checks and ask for references.
Suppliers can get many requests for quotes, samples, etc., many of which come to nothing. Make sure you behave in a way that lets them know you’re serious.
Should I Enter Into a Formal Agreement With My Suppliers?
Having a contract protects both you and your CBD supplier. Suppliers who are willing to work with just a handshake may not be very trustworthy themselves. But of course, be very careful about what you agree with.
Don’t ever sign a contract that you may not be able to honor. Rolling orders and guaranteed minimum orders must be avoided, especially from the start. Make sure to have your attorney go through any contracts before considering signing them.
What Sort Of Relationship Should I Have With My Suppliers?
It is a business relationship, and both parties are in it for their own benefit. You will bargain and negotiate accordingly and won’t agree with each other all the time. But at the same time, you want to establish good working relationships. Try not to change your orders often or promise things you can’t do.
Don’t accept a similar behavior from them, either. Take a win-win approach that helps to build a professional, open, and trusting relationship. When things go wrong, you need your CBD supplier, to be honest, give you fair warning, and pull out all the stops to solve the problem.
Make sure that you pay your supplier on time and treat them with respect.
Also, choose a CBD wholesale supplier not only for your current needs but taking a long-term approach.
A great supplier will assist you in developing new business ideas, to grow in size and reach. After all, they are suited to know the latest developments in Government regulations, as well as new science and technology concerning CBD products. They will keep you in the loop for new production techniques, processes, approaches, and marketing opportunities.
Working with a CBD supplier who is willing and able to share this knowledge with you can be extremely useful in helping you improve and extend what you offer your customers.
Why Opulent Organics Is a Great Partner For You
To be successful in your CBD business, you need to be well-educated regarding your products' ingredients, quality, legal issues, benefits, flavors, ease of use, recommendations, etc. You have to know what you sell!
If you choose Opulent Organics as your CBD supplier, our team will always be by your side with any and every concern. We’ll inform you about new developments, answer all your questions and even help you with your marketing strategy. All we want is for you to be successful.
As we have a growing retailer list we work with, our knowledge of that side of the business is always expanding. We are constantly bombarded with questions concerning many aspects of the CBD business, so we can confidently say we have a vast database that allows us to be by your side.
What makes us proud? Many aspects! But to make it short, Opulent Organics is a known and trusted company that produces locally, from industrial hemp, GMO-free, produced from natural ingredients, 0.0% THC, third party lab tested good quality products. Our CBD wholesale programs are currently running in 16 locations including New York, Colorado, Alabama, Tennessee, and many, many more.
The products you choose to sell will be a deciding factor for the success and longevity of your endeavor, so choose your CBD supplier wisely and enjoy your journey!
If you found this article interesting, you might also enjoy: