In the age of disruption, not a day goes by where a product or industry isn’t turned on it’s head and delivered to consumers in a completely different way. And the CBD industry is one of them. No longer is cannabis frowned upon as a mind-altering illegal substance. Rather, Cannabidiol, the second most prevalent of the active ingredients of cannabis (marijuana) is now widely used for a range of medical and therapeutic benefits.
On the back of the changes to the way cannabis has been adapted for legal use, several highly profitable industries have sprung up as a result. Thanks largely to government validation and widespread anecdotal evidence for CBD’s efficacy in treating a wide range of medical ailments, the industry has enjoyed a massive boost in sales over the last decade.
And the growth within the CBD industry is slated to continue into the next decade according to Forbes, who projects the market could reach 20 billion by 2024.
It is for this reason that many companies are jumping on board and making the most of the industry while it’s still hot. These business ventures are creating their own brands of cannabidiol products that offer many therapeutic benefits. While they are, of course, delivering several physical and mental health benefits to users, they are also getting massive returns on their investment.
Can the average person make money from CBD? The answer is yes and no. The problem is that for an average person, getting into the CBD manufacturing business right at the start of production is highly capital intensive. It requires so much investment that it may as well be termed an impossible task.
However, like so many other industries, there are plenty of opportunities for individuals and small business to get involved, and the easiest way is by becoming a CBD wholesaler. While this still may sound advanced, it’s actually more simple than you think.
In this article, we will discuss the advantages and disadvantages of getting into the cannabidiol industry as a wholesaler.
#1 – It Is Less Capital Intensive than Manufacturing Your Own Products
As stated earlier, the industry promises a huge profit margin for investors, and it’s for this reason that many companies are delving into manufacturing their own lines of CBD products. The problem is that this is a very capital-intensive process. However, as a cannabidiol wholesaler, you can still reap plenty of the financial rewards of the industry without outlaying anywhere near as much of the operating investment.
#2 – You Can Take Advantage of the Competition
Like any booming industry, the cannabidiol industry is becoming increasingly competitive by the day. There is no shortage of brands who are developing new and exciting products to stay ahead of the game. This is great news if you are a wholesaler.
Why? As a wholesaler, you are generally not obliged to deal with only one manufacturer. You can search for the best offers on the market and deal with numerous brands. This will give you an edge when marketing to your customers as the go-to outlet for multiple product lines.
Manufacturers are also likely to give you payment leverage and discounts if your buying volumes warrant their attention. This can mean preferential delivery timelines, more profits, and greater overall flexibility.
#3 – More Command of Your Products
As a trusted wholesaler, some brands allow you to rebrand their products with your own logo and branding. You may also be able to make tweaks to the product itself and add specific descriptions to the labelling.
Furthermore, manufacturers tend to respect the opinion of wholesalers given that they are at first-contact with retailers and consumers. This gives wholesalers the ability to influence the development of new product lines based on consumer demand.
#4 – Variety of Products Offered
The term ‘CBD product’ is ambiguous. This is because this chemical compound can be administered in various forms. It can be a topical product, an edible, a vape, a capsule, or a few others. For more on the various forms of cannabidiol items available, check out this article.
As a wholesaler, you are able to supply more than one variety of CBD product. Not only does this mean you can meet the various needs of users, you can also diversify your risk across more than one type of product line.
#5 – Top-Quality Products
In truth, CBD users should not only be concerned about the brand that produces the product, but the distributors as well. The warehousing condition and other responsibilities of the suppliers will influence the safety and effectiveness of the products.
In light of this, buying CBD on a wholesale basis is a better way to go. You will have greater assurance that the quality of the drug is intact and void of foul play by unethical distributors. It’s not uncommon to find that some products down the chain have been tampered with by the inclusion of preservatives and additives.
#6 – Financial Benefits
In simple terms, as a wholesaler of anything, you will buy a product at a much lower price than you on-sell it to the end user. This Return On Investment, or ROI makes the process of buying and selling highly financially rewarding if you know what you are doing.
#1 – Not Ideal as a Strategy For Personal Use
If you are only looking at the CBD wholesale opportunity to make savings for a lifetime of your own personal use, think again. Due to shelf life, volumes required to buy and total outlay, if you are not in it for making it a business venture, simply stick to purchasing the product as you need it.
#2 – Storage technicalities
CBD products are weather-sensitive chemical concentrations that need the right environment. If this is not provided, the potency of the product can be affected. Storage and warehousing is just one of the factors to consider when deciding whether to enter the wholesale market.
#3 – Some Low-Quality Products in the Market
Again, with any product or industry, there are bound to be some low-quality items in the market. If you don’t do your research and get stuck with buying something sub-par, the chances of selling them off and building a repeat clientele are slim. You can learn more here if you need help with how to identify top quality products.