The global market size for Cannabidiol Oil (CBD Oil) will reach $3.86 billion by 2025. That’s a staggering CAGR of 39.5% from 2018.

With the lucrative profits to be made in the CBD industry, it’s no surprise that an increasing number of entrepreneurs are starting to take notice. Over the years, the demand for organic CBD oil products has experienced massive growth as the number of users continues to burgeon.

So how can you break into CBD oil industry and cash in on the craze? Learning how to become a CBD oil distributor is a good starting point.

In this comprehensive guide, you’ll learn everything you need to know about opening and running a successful CBD oil distribution business. Read on to learn more.

What Is CBD?

Before you sell a product, you need to familiarize yourself with it. Doing so helps you understand what you’re selling so you can address the needs of your clients much better. This knowledge can also prove helpful when you’re choosing your suppliers.

CBD refers to one of more than 100 cannabinoids in the cannabis plant. It’s the best-known cannabinoid, besides tetrahydrocannabinol (THC).

Note that CBD and THC have significant differences. Not only do the two have different molecular structures, but they also differ in their psychoactive effects.

CBD supports the endocannabinoid system and boosts the user’s general wellness.

Who Is a CBD Oil Distributor?

A CBD oil distributor refers to someone who sells cannabidiol products, either on retail or wholesale. In the following sections, we’ll focus on the retail side of the CBD oil business.

Why Would You Want to Become a CBD Oil Distributor?

There are lots of reasons entrepreneurs are venturing into reselling CBD oil. These include the following:

1. CBD Has No Shortage of Customers

Arguably the most critical factor in sustaining a business is having a strong client base.

Organic CBD oil is one of the highly sought after products by a wide spectrum of the public. That’s because the product packs benefits for people of all ages, from children to the elderly.

CBD products for pets are also quite popular. Once you open a CBD oil distribution business, you can thus be sure that you’ll always have customers.

2. CBD Has Become a Lifestyle

Closely associated with the point above is the fact that a large section of the population uses CBD for other purposes besides medication. Some of these reasons include promoting fitness, diet, and relaxation. 64% of seniors, for instance, notice an improvement in their quality of life after using CBD.

As more people opt to make CBD oil a part of their lifestyles, new avenues for sales open up.

3. People Are Willing to Pay for High-Quality CBD Products

Top-quality CBD does not come cheap.

The good news is that consumers generally don’t mind the price as long as they know they’re buying the good stuff. Therefore, you can always be sure that you’ll make a profit even if you have to purchase your product at a high price.

4. The CBD Oil Market Is Expanding

Before learning how to start a CBD oil shop, one of the first things you want to be sure about is that demand for the product will still be strong ten years from now. The good news is that while the CBD oil industry is still in its infancy, it promises to grow steadily in the foreseeable future.

This is especially beneficial for small business owners as there aren’t industry behemoths controlling the cannabis industry at the moment. There’s still a lot of room to grow your business.

How to Become a CBD Oil Distributor

Opening a CBD oil distribution business can be a viable avenue to bring the product closer to the people and create wealth in the process. But how do you go about it?

In this section, we give you seven practical tips on how to become a CBD oil reseller.

1. Come up With a Business Plan

Every business needs an action plan to thrive. The first and most crucial step in venturing into the CBD oil distribution business is to write a good business plan. The plan should focus on:


For every CBD oil startup, financing is the top issue. Choose whether you’re going to run an online business or a brick-and-mortar one.

No matter the decision you make, you’ll still need a strong distribution channel to deliver the right product to your clients.

Generally, the amount of money you need to start your distribution will vary depending on a variety of factors, including the location and size of business.

Your Target Customers

Like any other startup, you’re going to need an effective marketing strategy to attract customers before opening your business. Determine who your prospective customers are and devise ways to meet them.

The Amount of Time It’ll Take You to Start Making Profits

You’re not going to start making a profit from day one. That’s why you need a solid plan for your business’ financial future.

Once you know how long it may take you to break even and become profitable, you can set aside the money you’ll need to stay afloat till then.

2. Choose a Suitable Business Name

The name of a business is a huge factor. It communicates who you are to your clients. You want your customers to get the message that you’re an expert in the industry.

Choose a name that’s not only catchy but also tied to the CBD industry. You want a name that sounds great when customers say it aloud. Let your name convey a unique benefit that customers can expect from your business.

Always be specific with your name. Avoid initials, especially those that don’t stand out. Make sure that the name you choose doesn’t already exist.

3. Open a Bank Account for the Business

You already know that you should never mix your personal finances with your business finances. Not only does it create confusion, but it can mess up tax issues.

Talk to your bank to set up a business account. The most suitable account is one with low fees and which allows you to move money around. You also want an account that provides you a business credit card and gives you access to a line of credit.

4. Choose a Shop

What are your goals and objectives?

Depending on them, you can opt for a physical location or an online business site. Each of these business models has its pros and cons.

A brick-and-mortar CBD oil distribution business affords you direct engagement with your new and repeat customers. You get to build strong relationships with your customers, which is the pillar of any successful business. However, you get to pay considerable ret and upkeep costs.

Setting up an online store can give you access to a broader audience, besides saving you on rental and maintenance costs associated with a physical business. Of course, you can always have both an online and an offline outlet to optimize your sales.

5. Obtain a License

Currently, it’s perfectly legal to sell CBD oil. That means you don’t need to get a special business license to open a CBD oil distributor shop.

That said, you’ll still need to get a standard business license for reselling CBD oil. There may be other licenses you need to get, so it’s best to check with your town, city, or state officials to find out.

6. Decide The Kind Of Products You’re Going to Carry

As a business owner, you need to decide from the outset what other products besides CBD oil you’re going to sell. You could add CBD oil tinctures, gummies, and vaping products to increase your revenue opportunities. Some customers will even want some CBD-based skincare products.

7. Find a Reliable CBD Supplier

Finding wholesale CBD oil stores you can count on for top quality products isn’t as easy as it may seem.

As you’re going to find out, there are many wholesalers. Look for companies that carry CBG hemp oil wholesale for sale in the US, and winnow these wholesalers down to one or two companies that perfectly meet your distribution needs.

Below is the criterion to use when choosing the right CBD supplier for your business:

First off, never work with a company that isn’t licensed. That’s a huge red flag.

Next, verify whether the company has the suitable testing labs to guarantee that the CBD products they sell meet the quality standards.

Ask the prospective supplier to provide you with a list of references. Call several of the clients in the list of references to inquire whether they had a good experience dealing with the supplier in question.

Be sure to check out the quality of their customer service as well.

Start Your CBD Oil Distributor Business on the Right Footing

As new CBD oil businesses open every day, the market for cannabis products in the US remains wide open.

Now that you’ve learned how to become a CBD oil distributor, it’s best to get going now. The time to run a thriving business and make a lucrative income in the CBD oil industry has never been better.

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