Cannabidiol, which is shortened to the popular acronym CBD, is one of many components of marijuana collectively known as cannabinoids. In recent years, the CBD trend has globally become very popular among consumers because of the health benefits attached to it when extracted from the right source and used in the right amounts.
As such, the popularity of CBD has produced many aspiring and experienced product distributors who want to get in on the action. According to industry experts, 1 in every 7 consumers in the United States buys CBD products. Financial estimates have set the size of the legalized CBD industry between 2020 and 2024 to be around $20billion. This is enough to make the idea of distributing CBD products an appealing business venture.
There are several opportunities available for individuals who decide to become distributors of CBD products. As a distributor, you get to choose the particular CBD product you wish to sell without limiting yourself to just CBD oils. You also have to be aware of the existing legislation surrounding the sale and distribution of CBD, as only industrial hemp CBD products are generally accepted as of the 2018 Farm Bill. To be a top CBD distributor in 2020, here are a few tips to help you stay ahead of the competition:
- Go for Quality Always
The best path to becoming a top CBD distributor is to always go for the highest quality products. This means you should always sell CBD products that meet up to necessary laboratory specifications. Whoever you choose to be your CBD supplier should be certified by relevant bodies to produce CBD products, be willing to share their Certificate of Analysis (COA) report when you request for it, and should have a proven track record in the CBD industry. The COA report will also give you information about the purity and potency of a CBD supplier’s products.
- Get the Mandatory Licenses
Before you can become a recognized CBD distributor, you will need to apply for a standard business reseller’s license. This is very important especially if you want to be actively involved in the online sale and distribution of CBD products.
- Strong Business Plan
To become a successful CBD distributor, you must have a strong business model. This means you will need to take the time to invest in creating a sound business plan that includes financial projections over time. Funding a new business ultimately requires research into several important factors. These include your target audience, who are the specific people who will buy your product. You’ll need to know where they are located and what CBD product they specifically are looking for.
On top of this, you’ll also want to make sure you have distributions channels in place to best determine if you want to distribute through retail shops, online, or using both channels. Your operating costs for distributing via retail shops against online distribution should also be analyzed at this stage. Finally, you’ll want to create comprehensive marketing strategy to effectively market your CBD products. This could be through retail advertising, content marketing and SEO, or via various social media platforms where you can easily reach your target audience.
Becoming a CBD distributor in 2020 is certainty a challenge, as the loosing of laws and regulations means that more and more entrepreneurs are getting in the game. However, you should see this as an opportunity to differentiate yourself from the competition and provide quality CBD products to your customers in a way that nobody else is.