As a CBD manufacturer, we often get questions on how to get started in the CBD business. It’s possible that you may already have a vape business and would like to understand how to make CBD oil to distribute yourself, or maybe you just want to discover how you can sell CBD online.
Becoming a CBD distributor is a great idea if you’re looking to skyrocket your profits, and many of our customers have started successful CBD oil businesses with the help of our coaching on branding and distribution. This article will shed some insight on how you can get started.
You’ll need to know several important things before you begin getting your hands wet. You’ll want to first be familiar with the current market research on CBD, and how to tell the difference between great quality and not-so-great quality CBD oil. Let’s dive into one of the most explosive and trending supplements in the health and vaping industry together.
CBD is a non-psychoactive compound found in Cannabis. From implications in recent medical research, the use of CBD has been discovered to boost mental clarity, lower anxiety, and reduce insomnia. CBD has gained reputation as a cost effective, non-psychoactive alternative to expensive medical marijuana and costly medical care. Most vape and holistic care companies have already joined in and diversified their brand with the power of CBD.
The CBD market is growing exponentially. According to the Rolling Stone, the CBD market is expected to reach $22 billion by 2022. Bethany Gomez, an analyst for the Brightfield Group that has been researching CBD for several years, remarked that the CBD market is the future of alternative medicine. CBD distribution is expected to explode in natural food stores, smoke shops, and medical companies in the upcoming year. Nearly every product with CBD is expected to increase in demand by the end of 2019.
Interested in reading more about the outlook for CBD? Take a look at CannabisNewsWire’s most recent report on the CBD market growth trend through 2020.
Definitely not. There’s plenty of room for budding entrepreneurs and businesses to take advantage of the growth in all areas surrounding CBD, and especially for niche markets.
Marketing research firm Brightfield Group partnered with the nation’s largest online community of medical cannabis patients (HelloMD) to conduct comprehensive research on the growing CBD market yet. In 2017, Brightfield Group released some of their data to the public.
From their sample of 2,400 members, located mostly in California and abroad, it was determined that 58% of CBD-only users were women, and that vaping was preferred to topicals and tinctures. Weekly consumption was around 80%, whereas 41% used CBD daily. We made a handy graphic that will help you visualize the data below:
In addition to anxiety, insomnia, and inflammation, it was discovered that some of the other common conditions that the sample size used CBD for is headaches, nausea, muscle strain, and arthritis.
The market of CBD is unique in that it appeals to more than holistic practitioners, health nuts, and doctors but vapers and medicinal marijuana users as well. This makes its potential in the market double, if not triple more lucrative than e-liquids.
So now that you’re armed with information on your market, you’re probably wondering when you can start your CBD business. Not so fast! There are still things you should know about CBD oil.
If you want to become a CBD distributor, you also need to know how CBD oil is made.
Since the CBD market is still relatively new, debates are still raging on regarding the best way to make CBD oil. Extracting CBD from hemp can take many forms: CO2 extraction, ethanol extraction, butane extraction, and extraction with olive oil.
Check out the breakdown of each extraction process including their pros and cons in the chart below.
Canazil uses CO2 Extraction because of how clean and efficient the process is, and due to the purity of results.
Although MCT/coconut oil is often used after the extraction process, this particular oil cannot be used to extract CBD from cannabis plant. Coconut oil is a fatty acid and not a solvent, so the oil doesn’t react with the plant to extract CBD material the way a solvent like CO2 would. And while solvent-free extractions do exist, MCT oil is not a viable industrial extracting solution because its interactions with THC are too unstable. Canazil does however use MCT oil post extraction as a mixer in CBD tinctures as it is a great way to help with absorption by the body.
The quality of the CBD oil you distribute matters. While it may be tempting to sell low grade CBD oil because it is cheaper, it is not worth the investment in the end. You should share our mission to make the health benefits of CBD accessible to all, and lower quality CBD oil will give your business a poor reputation off the bat. Your customers will be able to tell right away, and you’ll be spinning your wheels. Lower grade CBD oil is processed so poorly that all the important terpenes that give CBD oil health benefits are removed or not included.
One of the ways you should assure quality from a manufacturer is by getting a Certificate of Analysis. A Certificate of Analysis (COA) is an authenticated document to guarantee the quality of the CBD. It will have technical specifications that include the analysis method, the product, and the result. Your business is based on customer needs, so you’ll want them to have the best, right? In order to give them the best, you need to make sure that it is the best.
There are thousands, if not millions, of CBD strains, and hundreds are being discovered daily. A few of the highest CBD strains considered today include Stephen Hawking Kush (22% CBD content), Charlotte’s Web (with 20% CBD content), ACDC (15-20% CBD content, depending on the variety), and Harlequin (6-15% CBD content). With so many to choose from, you may be wondering which strain makes the strongest CBD oil for your customers. Canazil’s CBD strain is grown organically in the US, has at least 10% CBD content, and is extracted without any toxins. Our customers review us highly and thank us daily for offering quality CBD that helps their ailments and increases their quality of life.
Vaping is the most popular way of taking CBD. Therefore, knowing how to make CBD vape oil is an important thing to know. You can’t just mix cbd oil with vape juice on the shelf and sell it.
CBD distributors use coconut oil with full spectrum CBD because it supports healthy absorption into the bloodstream. Since MCT oil is a fatty acid, if you were to put Canazil CBD oil in a mod, or even e-juice, it would clog the vaper’s coil.
What you’ll want to do instead is to mix pure CBD oil with propylene glycol (PG), vegetable glycerin (VG), and natural flavorings. Unless you have access to pure CBD (without MCT oil), you’ll want to partner with a high quality CBD vape oil company to start producing your own CBD vape oil.
Now that you have all you need to know about CBD oil, we can dive into the meat and potatoes of how to sell CBD online and how to become a CBD distributor. Selling CBD online involves developing an ecommerce site and a digital marketing strategy tailored to your business and product mix. Becoming a CBD distributor involves making connections to retail stores and manufacturers.
Here’s how you can make money selling quality CBD online.
Before your able to start selling CBD online, you’ll need a product to sell. This means extracting and producing your own CBD (difficult and expensive), or partnering with a reputable CBD manufacturer to produce your products.
Next, you need to start thinking about your brand. You’ll want to create an impactful name for your CBD business, and once you’ve decided on a name (e.g. FX CBD), you’ll want to create a brand identity. At this stage, you should hire a graphic designer to create your logo, labels and packaging designs. Some white label manufacturers, like Canazil, have designers in house that can do all this work for you within your production package.
Now that you have a product and a brand, it’s time to begin setting up your online storefront. The easiest way to do this is by creating a Shopify account. Shopify makes it easy to set up an e-commerce store without any coding experience. Make sure your Shopify web store has a user friendly layout. You can choose from a Shopify template or hire a designer to create a layout for your website, but that will cost you a little more.
The next step is to begin marketing your CBD website. A new powerful technique to do this is by leveraging the growing trend of Social Media Influencer marketing.
A social media influencer is someone who has a large following on a social platform like Facebook or Instagram. Some of these “influencers” have millions of loyal followers with a percentage eager to spend their money on anything the influencer promotes. This is an easy way to boost sales of even the most underperforming product on your line up overnight. You can also post your own content to your company social media page using hashtags (e.g. #cbdoil) that will make it easy for users to discover your products.
Your CBD products can also be promoted with Google ads, Facebook ads, and Instagram ads that appear to social media users depending on the content that they express interest in. However, it’s important to note that CBD e-liquids can not be placed as paid advertisements on these platforms due to their ad policies.
An advanced technique to promote your web store is search engine optimization. What did you do when you started looking for CBD manufacturers? You googled “CBD manufacturer”. Chances are, you used google to find your way to this very article. Every day, companies all over spend thousands trying to get their website to the front page of search engines. This process, called Search Engine Optimization (SEO), is an in depth process that involves keyword research, content creation, and the monitoring of analytics and search engine algorithm changes.
Although it is possible to go viral in a relatively short time, it usually does take time. If you are starting from scratch, expect to grow your business as your online marketing skills grow.
As a CBD distributor, you will be the middleman between retail/online CBD stores and CBD manufacturers. This means you’ll want to bridge the gaps between retailers and manufacturers by building solid relationships with both parties.
Start by googling e-juice retailers, vape shops, CBD dispensaries, or health stores that may be interested in carrying CBD. Once you have that list, begin contacting each, ask to speak to the owner or manager, and pitch your interest in distributing CBD tinctures, lotions, e-juice, creams, or any other CBD products in their store. Make another list of those interested. Once you are connected well enough with several retailers to support your pitch, you’ll start your search for a manufacturer.
You’ll want to find a good CBD manufacturer, one that fits the criteria for distributing high quality CBD. Type in “cbd manufacturer” into Google and you’ll find a few. Grab a pen and a pad, jot down the contact information for each. Make inquiries over the phone call or email. You should be asking where their CBD comes from, how they extract CBD from hemp, and if they have COAs. Ask about all the products they can manufacturer and what their minimum order quantities are (MOQs). Companies like Canazil have the resources to create any CBD product (tinctures, vape oils, creams, lotions, to name a few). Ensure the company you decide to work with has a quality guarantee from customer service to product.
Most manufacturers have tiered packages. Jot down the price of each. Make sure you also ask what their wholesale pricing is, keeping in mind that you’ll have to sell the products at a profit to retailers. When you have contacted several manufacturers, weigh the pros and cons of each and decide on the manufacturer that will work best for you. Make an informed decision by reading up on the company and any reviews that may be posted online. If applicable, discuss the decision with a trusted colleague or your business partner.
Once you have built solid relationships with retailers, and found the perfect manufacturer, all that’s left to do is to purchase CBD in bulk quantities from the manufacturer and sell at a profit to your retail partners. You will also need to coordinate the shipping of goods, either direct from the manufacturer to the retailer, or first from the manufacturer to you (the distributor), and then shipped to the retailer.
If you’re still stumped on how to become a CBD manufacturer or how to sell CBD online, you should definitely contact a full service CBD manufacturer with experience in the industry.
Becoming a CBD distributor is a very involved, tedious, and strenuous process. If you’re a vape shop owner, dispensary, health store, or chiropractor, you’ve already got your work cut out for you. Selling CBD online direct-to-consumer is an easier way to start making money with CBD.
Many CBD businesses hire us as a full service CBD manufacturer to manage production and design services for them. With over a hundred employees working together to build brands, we are dedicated to our clients success.
Contact us today to discover our capabilities.