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How to start selling CBD Oil products?

Are you an aspiring entrepreneur, planning to take the market by a storm with your very own innovative hemp-derived CBD oil product line? In this article, you will learn everything you need to know before you get started and find the answer to one of the most prominent questions: branding and reselling private label CBD products versus manufacturing your own products from scratch - which option is more profitable?

CBD Hemp Oil Private Label - BIOTA Biosciences

Is it not too late?More and more companies are entering the CBD market in the recent years, and the rate at which new companies are popping up is steadily increasing. The global CBD market has grown significantly over the past five years, and it's showing no signs of slowing down. Forbes estimates that the market is bound to grow to a whopping 1 billion dollars in the near future. If you didn't get into the hemp oil business a few years back, this is the time to do it, because the window will eventually close and it will be much more difficult to establish your brand new medicinal hemp oil brand as time goes on.

How do you get started?

There are two ways to bring new products into the market:

A) Build your own production and manufacturing chain, which includes growing specific CBD-rich strains of hemp, extracting your crude oil, formulating the finished product at a well-equipped laboratory, packaging, and managing logistics. 

Estimated set-up timeframe: 12-18 months.

Capital / Investment: Upwards of $500,000.

Recommended Experience: Extensive large-scale business management.

B) Purchase private label or white label products from an established manufacturer and focus your efforts on mastering the art of sales and generating revenue.

Estimated set-up timeframe: Up to 1 Month.

Capital / Investment: As low as $5,000.

Recommended Experience: Basic business know-how, marketing, e-commerce.

We suggest you choose option 'B' for several important reasons. It is not that easy to manufacture an effective, premium quality CBD Oil product from scratch. You will most likely seek to innovate and offer more products rather than a single tincture, and that only raises the difficulty bar further. The CBD industry is different compared to the majority of other lines of businesses you could choose to invest in. If you choose option 'A', some of the headaches you would most likely run into are regulatory constraints (which affect manufacturers the most), the necessity of employing a team of scientists with extensive knowledge and experience in nutraceutical, pharmaceutical and cosmetics industries, logistical challenges. Although it may seem that your costs would be lower if you were to produce everything within your organization, the reality is that when you account for the staffing, logistics, research & development, and a dozen more expenses, your borderline is not going to look at pretty as you initially thought it would.

Instead, you can acquire high-quality finished CBD products at an affordable price point, which will bring significant advantages to your new business: 

1) You will be able to start creating your customer base and establishing your brand immediately.

2) You will not need to invest large sums of money into production, extraction and other facilities. You can simply focus on promoting your products and generating revenue.

3) If anything goes wrong within your company, you won't be facing the risk of losing everything. If you ever decide that this business is not for you, you can sell through your inventory with ease and move on to your next venture.

4) If the end-goal of your business is an event of acquisition, CBD Oil brands that source their products through a private label manufacturer are significantly more attractive to potential buyers and are considerably easier to sell. The new owner of your business will not have to worry about running an extensive, multifaceted organization with a massive monthly overhead.

Vertical integration (when all the processes from seed to shelf are performed by your company) is no longer a smart business decision, as there are numerous manufacturers who can provide you with a premium quality product under your label without breaking the bank. The only possible reason for you to consider acquiring all the means of production is if you already own real estate suitable to establish a laboratory & extraction facility, have a broad network connections within the industry and years of experience in large-scale operations management. Even then, the advantages of working with a proper private label manufacturer, as oppossed to running the entire show yourself, are overwhelming.

How to find a Private Label CBD Hemp Oil manufacturer?

There are plenty of suppliers across the globe who offer private labeling services. However, don't forget that your OEM supplier is the single most important partner in your business. A good supplier must be able to offer competitive rates, a broad range of products. Your partner has to be 100% reliable and experienced. You should seek for innovation and companies that are conducting continuous research & development. At the current stage, the market is rather oversaturated with seemingly identical products under different brand names. A good solution to differentiate your product from the rest would be to use a premium quality full-spectrum CBD oil, extracted using subcritical CO2 method, as a base for your products. Subcritical CO2 extracts contain more vitamins, omega acids and other beneficial compounds than supercritical CO2 extracts. A capable manufacturer should also be able to manufacture a bespoke CBD product based on your formulation or idea. In addition to private label and white label services, a worthy manufacturer should also offer CBD business consulting services to help guide your business on the right path to success. 

Be wise when investing your time and money and make sure that your efforts don't go to waste. Let a professional private label manufacturer handle your production while you focus on making the world a better place and make a hefty profit at the same time.


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