How Do I Become a CBD Distributor?
We hear this question a lot at US Hemp Wholesale. The CBD industry has been booming for more than half a decade and every day it attracts new entrepreneurs and businesspeople. The problem is, most people don’t know how they can get their foot in the door.
At US Hemp Wholesale, we help people like you become CBD distributors. Whether you run a retail store, have your own chiropractic or acupuncture practice, or you help people improve their health through personal training or physical therapy, we can put the right CBD products in your hands.
But while getting great will be crucial to your success, there’s other things to consider when starting CBD distribution. This outline and the details contained in this article will help you become a CBD distributor in no time.
- Outline Your Business Plan
- Decide on a Company Name
- Set Up a Bank Account for Your New Company
- Choose a Storefront / Choose an Online Shopping Platform
- Become Licensed as a Retailer
- Choose a CBD Distribution Partner
- Decide which Products You Wish to Sell
- Purchase Your Products Through Your CBD Distribution Partner
- Stock Your Store and Sell Your Products
This article outlines the basics of how to become a CBD distributor. But keep in mind there is no one-size solution, because every situation is unique. That’s why we’ve chosen to outline many of the most popular ways that CBD distributors get started, we want you to be able to make the right choice for you, your business, and your customers.
Getting Started as a CBD Distributor
There has never been a better time to get started in the CBD business! The industry continues to grow at an unprecedented pace, giving business owners even more options on how to break into the industry.
Most of the CBD distributors who work with us use one of three different methods, dropshipping, wholesale, or resale. We’ve outlined the basics of each method to help you decide which might work best for you.
- Dropshipping – Dropshippers have us handle the shipping of the CBD products to their customers, cutting down on internal costs. Dropshipping is primarily used by online retailers who wish to avoid the cost of having their own warehouse space.
- Wholesale (Personal Retail) – Many CBD distributors purchase products from us at a wholesale price to sell at their own stores. Some take this even further with white label or private label options. These options let distributors re-brand products with their own branding (white label) or help them create a unique product using our hemp-derived CBD manufacturing knowledge (private label).
- Third-Party Distribution – Third-party distributors purchase products from us at margins significantly below wholesale and sell our products to locations like convenience stores, large retail chains such as CVS and Walgreens, and more.
Why US Hemp Wholesale is the Best CBD Oil Distribution Partner
We commit ourselves to quality and excellence in everything we do. That commitment begins with our products. Our experts carefully curate each of our high-quality CBD products to fit the growing needs of the hemp industry and customers. We’ve also equipped our customer service team to provide you with the best support for your business. Whether you have general questions, industry questions, or something else, our team has the answers you need.
Of course, high-quality products make the difference in the world of CBD products. We’ve got you covered on that front. Our CBD Oil is:
- Extracted via CO2 from domestic farms in Colorado and Kentucky
- Manufactured in Jenison, Michigan in an FDA and GMP compliant facility
- Infused with MCT oil in order to carry the CBD oil into the bloodstream faster
- Non-GMO, Vegan, Gluten-Free, and free of any artificial flavoring or dyes
- Made with natural terpenes to create robust flavor profiles
These quality assurances, and dozens of others, set us apart from the competition. Most importantly, we want you to know that we run a transparent company. We eagerly share information about our processes and how we run our business. We are happy to answer any other questions you may have about us or our products.
How to Qualify as a CBD Distributor with US Hemp Wholesale
At US Hemp Wholesale we aim to provide our distributor partners with the best wholesale CBD margins, products, service, and support. To make a partnership with us more effective, we want to know the following about your business:
- What does your distribution network look like?
- How many stores are you currently distributing product to?
- What kind of products are you distributing?
- What kind of order volume do you require per order?
- What is your average reorder rate?
- What retail price point are you looking for?
After you answer these six questions, we will determine if you will be successful as a distributor partner with us. If you don’t quite fit, we’ll provide you with an array of options to help you get there.
Your Benefits as a Distributor Partner
- Custom Private Labeling – Creating your own line of custom CBD oils is easy with our private labeling service. We take care of the product manufacturing process and then we add your branding to it, making it all your own.
- CBD Manufacturing – Create your own custom private label product or formula.
- Third-Party Lab Testing – When you sell our products, you can ensure that all products are of the highest quality and potency. We have the purity of our CBD products tested by both third-party labs and our own labs. If you’d like, we’ll happily provide certificates of analysis (COA) for any of our products.
- Product Selection – As the leading hemp wholesaler, we offer the most comprehensive range of CBD oils, tinctures, edibles, vape cartridges, and more. No matter your customer base, one of our products is sure to fit your customers’ needs.
- Fulfillment Services – To make things even simpler, you can even have your product orders fulfilled by US Hemp Wholesale. We will warehouse, pack, and ship your orders. This saves you the costs of having your own warehouse and warehouse personnel. To keep you in the loop, we send you a tracking number with each order.
- Knowledgeable Customer Service Representatives – Our representatives are available Monday through Friday from 9 am until 5 pm Eastern time to help answer any questions you may have. Our team closely monitors industry changes to be prepared for any questions you may ask.
How Does Our CBD Distributor Program Work?
We work to provide the best margins possible for our distributors because we understand that price matters. Our distributor pricing structure is an additional 20% off of wholesale. Our wholesale pricing starts at 50% off of the retail price (MSRP).
Here’s a quick breakdown of how our distributor programs work:
- Months 1-3: Distributors are required to meet a minimum monthly order total of $10,000
- Months 3-6 Distributors are required to meet a minimum monthly order total of $20,000
- Beyond Month 6: Distributors are required to average a monthly order total of $30,000
Steps to Become a Distributor with US Hemp Wholesale
- Fill out our partner form.
- Select “distributor” under business type.
- Provide as many details as possible about your business in 255 characters or less.
- Submit the form and wait for a sales representative to contact you directly.
- Answer our distributor questions as accurately as possible.
- Fill out our distributor agreement and choose the products you would like to carry.
- Start distributing!
Frequently Asked Questions – CBD Oil Distribution
What happens if I am not able to meet the $30,000/month average order by month 6?
If you are unable to meet this minimum by month 6, we re–evaluate your CBD distribution model and the next month there will be a 10% discount deduction until you meet the minimum.
How do I determine which CBD products to carry?
We recommend that you fully outline your target customer profile. Once you have locked down your target market, you should be able to determine which products will work best for your customer base. Here are some examples to help you get started:
- Spas and salons – Skincare products such as topicals are a good option for this type of market. They may also be interested in carrying the different CBD salves that we offer.
- Fitness studios – Typically, these people are looking for quick, on the go style products such as capsules, gummies, and even cocoas to get a post-workout sugar boost.
- Doctor’s offices, chiropractors, and more – These offices are the most versatile and will usually want to carry tinctures of varying potencies along with capsules, gummies, and softgels.
What are some tips on how to make my business stand out from the rest?
Having been in the CBD industry from the beginning, we have learned a lot about the industry. But our main takeaway has been that the demand for CBD products and what we know about hemp-derived products is constantly changing.
Here are some of our recommendations on how to set yourself apart from the competition.
- Educate Yourself: Being educated about products, industry regulations, and more equips you to answer your customers’ questions and make them feel at ease. The more you know, the more comfortable customers will feel purchasing from you. At US Hemp Wholesale we have a wide variety of resources designed to help you stay up to date with the industry.
- Understand Your Target Market: In the hemp industry, it is more important than ever for you to decide exactly who you want to sell to. When making this choice, be as specific as possible. Once you have figured that out, make sure you understand what makes that target market tick. Are they looking for products that make them feel healthy and rejuvenated? Is ease and quick on-the-go products something they prioritize? Are they young, middle-aged, older, or primarily male or female? All of these questions, along with other demographic info, will help determine what products to sell and how to approach the sale.
- Be Prepared with a Quality Product: Consumers are smart and very curious. Most consumers now want to know every ingredient in anything they ingest. Therefore, it is of the utmost importance to make all of that information easily accessible. You also need a Certificate of Analysis (COA) available to back up the product information. Working with US Hemp Wholesale, you receive access to all of the COAs for each product we provide. These COAs are updated with new batch produced.
- Is it more beneficial for me to private label or distribute your brand? In order to answer this question, consider the following:
- Do you want to establish your own brand or do you just to be a part of the CBD industry in any way you can? If you just want to be a part of the industry, we would recommend selling our brand directly. We already have an established brand, which will give you an easier time building a customer base without the hassle of having to develop your own marketing and brand recognition.
- Do you already have an established business or brand of other products that you would continue to use when selling CBD? If yes, we suggest private labeling because you have already built customer trust.
- Do you have a lot of other CBD companies competing in your area? If yes, we recommend that you consider private labeling in order to set yourself apart from the competition. Establishing your own brand and building up customer trust by combining quality products with quality service is one of the most tried-and-true methods of breaking into any industry, especially when it comes to CBD.
- Do you offer marketing materials, packaging, and more to help set my business apart? Yes! We offer marketing materials and resources that you can use to inform your customers. These materials include everything from information about the endocannabinoid system to information about our CBD pet products. We also offer a shelf-ready packaging line with corrugated display boxes! If there is anything else that you think would be helpful for your business, we are happy to either provide it for you or give you recommendations on who can make the items you want. All you have to do is ask!
We know that you have so many options when you decide who to partner with for CBD oil distribution, and we want to become your next partner in your business journey! If you are interested in becoming a CBD distribution partner with us, please call us directly at 844-887-4367 and our sales representatives will be happy to answer your questions. Alternatively, you can fill out our form to start the distribution process with US Hemp Wholesale.
You can also learn more about what we do at US Hemp Wholesale by visiting our main page.