Step by Step Process of Private Labeling CBD Products

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How to Private Label CBD

For anyone looking to get in on the CBD “green rush” that is happening right now, they can feel confident that it is a great time to do so. That’s because there is still a ton of upward growth left for the CBD sector, giving entrepreneurs the perfect opportunity to establish booming CBD businesses of their own. 

The 2018 Farm Bill that legalized hemp-derived products is still fresh; so much so that the FDA is still trying to catch up to legislation with official regulations on the matter. States are individually working towards full legalization of cannabis; and with the current interest and demand for naturally derived products, those looking to start their own CBD businesses have a rapidly growing consumer base to sell to. One of the best ways to get in on the action is to build a business model on the foundation of private labeling. 

What is Private Labeling? 

Private labeling is when a customer-facing retailer sources a product from a third-party manufacturer but sells it using their own (the retailer’s) brand name. The retailer specifies the packaging, the label’s design, what goes into the product and they take on the cost of having it delivered to their store. This is a great business model, especially for those just getting into the sector, as it empowers you to create and control your brand while not having to reinvent the wheel that is farming and growing hemp then extracting the cbd and manufacturing the CBD oil. 

Here is How to Private Label CBD Products for Your Own CBD line or business:

Step 1: Decide on What Types of CBD Products you will Offer

Whether you’re building an entire business around selling just CBD products or simply adding a new line to your already existing offerings, you need to decide on what kinds of CBD products you will have in stock. There is everything from CBD ice cream to CBD pet food to CBD skincare and beauty products and more. Deciding on what you will offer will lead you to the next step; knowing what to source. 

Step 2: Find a Private Label CBD Manufacturer

Once you have an idea of what you want to offer, you can begin researching private label CBD product manufacturers. This is one of the most important steps because the success of your business will only go as far as the quality of the product can carry you. It will also be dependent upon your ability to meet demand when you need to. If you choose a manufacturer with a low-quality product or a manufacturer that can’t deliver as quickly as you need to, it will damage your brand’s reputation. Also, if you’re paying too much for the product and have no room to markup, your margins will be small, ultimately risking the success of the business.

Take the time to thoroughly research so you can find a manufacturer that has a fast turnaround time when you place an order, is an experienced manufacturer with some years in the industry and can provide you transparency on their products via certificates of analysis. Those certificates will ensure you’re getting the product you’re paying for and that its contents are compliant with the current laws. Making sure your manufacturer is registered with the FDA, is insured, and has competitive pricing on their products is crucial. You’ll also want to find a private label manufacturer that is flexible and has low minimum order amounts as well as the ability to fulfill larger orders. 

100% U.S.A. sourced products are always a plus if your business is U.S.A. based. Also, having a manufacturer that is PETA Cruelty-Free certified means you have a marketable certification that is currently in demand by consumers – and – you won’t have to worry about animal cruelty controversy and backlash surrounding products sold by your brand. 

Some of the most popular CBD items for retailers are CBD Oils, CBD Oil Tinctures, CBD Ingestibles, CBD Skin Care products, CBD Vape oils, CBD isolate, Terpenes and others. These are also some of the easiest to sell and the most versatile items that can be integrated into existing brands. Find a manufacturer that offers some or all of these.

Lastly, finding a manufacturer that allows you to customize your formula is a huge win for your brand. It allows you to control what you’re giving your customers and to separate yourself from competitors. Going with a manufacturer that can create specific formulas themselves means they’ll be able to help you determine the best and most effective delivery system of formula. This takes into account bioavailability, absorption, use, and safety of the product and will help determine what form to sell the products in, whether its powder, liquid, tincture, capsule or tablet form. 

Step 3: Get a Quote

Once you find your manufacturer, you’ll need to reach out to them for quotes. That all depends on what you’ll need, of course, so be sure to provide them as much information and detail as is needed. This will allow you to finalize your pricing and get an idea of what your revenue will be. 

Step 4: Finalize the Product Details and Label Design with your Manufacturer

Next, you will work with your manufacturer to nail down a formula or blend for the product contents you intend on selling. If you choose a manufacturer who handles the design of the label themselves, you will also need to communicate to them what you’re looking for in the design and approve the final label design. If not, you’ll need to send them your artwork and label design materials. 

Step 5: Place your Orders

Once this is all approved and established, you’ll place the order for how much of everything you want. 

Step 6: Fulfill 

If you’ve chosen to take on fulfillment yourself, the order you place will be sent to you. It will be your responsibility to warehouse and ship to your customers. If you go with a manufacturer that offers fulfillment, you will see an increase in fees to cover the costs of warehousing and shipping on their end. 

Once you’ve got your production funnel worked out and in place, you can move on to other important aspects of making your CBD line or business a success. How well you market and handle your customer service will have a huge impact on whether your products sell. Knowing you have a reliable manufacturer and a high-quality product will give you the right foundation to move forward with the next phases of your business confidently.