Risks and Liabilities That Come With Selling CBD in Wholesale

The current CBD landscape shows new research evidencing the compound’s effects and a substantial (and continually growing) amount of public testimonials speaking in favor of the therapeutic properties causing the market to soar with predictions that it will continue to do so for the next several years.

The products are quickly becoming a household staple as an addition to self-care and wellness routines. While demand can rapidly overwhelm sellers, these suppliers must take a breath and ensure that they keep awareness of possible liabilities and potential risks associated with selling and shipping CBD products in an effort to minimize these as much as possible. Pull this link to learn about shipping guidelines.

While the 2018 Farm Bill legalized hemp on a federal level and all products derived from the plant as long as the THC remained at or below 0.3%, it’s crucial to understand that local, state, and federal laws can differ significantly. It’s your responsibility as someone selling these items to ensure you comply in each situation.

Your legal provider and insurance carrier can assist in determining whether you remain in compliance and meet the required regulations and standards.

Wholesale Resources / Quality Control

Unfortunately, with the surge in the CBD market came an overabundance of new brands, a significant number of whom were guilty of mislabeling products. Some items either had too much CBD, too little or none. With no federal guidelines to be met, providers struggle in determining the contents of their products and if there are contaminants.

For this reason, it’s critical to ensure that you partner with a great distributor of high standards who you can trust. Things you should look for in the wholesaler:

  • What Is The Source: The overall quality of the CBD oil is affected by where the hemp plant grows and by the farmers who tend the crops. Farmers with extensive experience will have the ideal crop with quality oil produced from the plant.

    If you buy from a wholesaler who grows their own plants, research their practices to verify these are above the standards.
  • How Do They Extract The Oil: You can extract CBD oil in a number of ways from the hemp plant with the suggestion that CO2 is the highest standard because it is the cleanest and safest of the options. Other choices have the potential for leaving harsh chemical residue behind in the final product.
  • How Is Pricing Determined: It’s wise to avoid wholesalers with prices “too good to be true” because generally, they are. The adage, “you get what you pay for,” is typically true.

    The less you pay, the lower the quality and if you pass these items on to your target audience, you could lose these customers. Once you develop a reputation as offering faulty products, the word will spread, and it will be challenging to build back up from that point.
  • COA / Certificate Of Analysis Is A Must:  A provider should openly supply a COA or Certificate of Analysis. The report verifies the chemical compounds in each product, particularly the levels of CBD and THC. The results assure customers that they’re receiving a pure item with contents the same as listed on the packaging label.

    Because products in the United States only deem legal to buy and sell if the THC level remains at or below 0.3%, it’s imperative to confirm this with certified independent lab testing showing safety, potency, and purity.

    Instead of trusting a COA from a potential distributor, send the items to the lab for testing yourself. That will not only validate the results but will offer peace of mind.
Cbd Package

Knowing Your Products And Training Those Around You

As someone selling cannabidiol, you have to have a thorough understanding of the compound and what it can do, benefits, effects, side effects, anything that someone might want to know as a beginning user.

Your wholesale partner will guide you through your initial stages of preparing your opening operations and, in some cases, offer resources and training for suppliers in this aspect. You also want to train your staff to the same level encouraging them to study, as well, until they too can help customers with adequate, knowledgeable information.

You never want to make claims to a customer that are unfounded, such as indicating CBD can cure, diagnose, prevent, treat, or in any way act in a medical capacity. It can put your establishment at risk for claims. The language you use with consumers needs to be intentional and cautious.

It’s wise to have literature lying around to inform, like brochures, signs, or newsletters/bulletins that customers can take with them. Sometimes wholesalers will offer this type of material. But if you create these, make sure the information is accurate and factual. Learn more about working with your wholesale distributor at https://indiarag.com/2021/01/01/things-to-know-about-cbd-wholesale/.

Final Thought

While CBD products offer an enormous opportunity for retailers who partner with trusted wholesale distributors in the way of a successful business and exceptional revenue, there are unique struggles and risks that you face.

You need to become aware of these before you open your doors so that you’re compliant in each respect, learn the language you need to use with customers, and study CBD so you can speak intelligently on the subject for those new to the compound.

When you take steps to be prepared for any risks or liabilities, it protects you and your business from harmful issues so that all you need to do is grow and succeed.