How to Become a CBD Oil Distributor in the UK
Do you prefer a botanical way of promoting wellness instead of pharmaceutical methods? If so, then you may love CBD products and want to know how to become a CBD oil distributor in the UK.
You may have heard about it. The recent hype is because a lot of people are using it for wellness purposes and to support their health. Yes, it’s CBD oils we’re talking about.
Fans of CBD oil swear by its benefits. Many of these claims are supported by studies. This has caused an explosion in demand for CBD oil and related products in recent years.
The demand is forecasted to keep rising as the need for a more natural way of living, going back to plant-based products, is being promoted worldwide.
Prohibition partners reports that the European cannabis market is projected to be a whopping €3.2 billion by 2025. With this market growth in sight, everyone is tapping into this opportunity—and so can you.
However, before jumping in, here is some key information you need:
- Why the business of CBD oil distribution?
- How to become a CBD oil distributor
- Knowing what the law requires of CBD oil distribution
- Setting up for CBD oil distribution
- Key steps to becoming successful as a distributor
We’ve compiled detailed answers to help guide you on how to become a CBD oil distributor in the UK.
Why the business of CBD oil distribution?
CBD is cannabidiol, one of the key compounds in cannabis plants. It’s made from the hemp variety of cannabis. Unlike its counterpart tetrahydrocannabinol-THC, which is from the marijuana variety of cannabis and causes a “high” when used, CBD is not psychoactive or intoxicating. That’s why it has been legalised for use as a supplement in the UK.
CBD is making sales globally because of a widespread belief it may fend off chronic pain, insomnia, anxiety, and more. With one of the leading CBD products being CBD oil, new brands keep sprouting every year.
So why should you join this business and become a CBD oil distributor?
Because there’s a market for it! People are opting for alternatives to pharmaceutical drugs. In 2020, the market’s global value was 12.8 billion USD and a 26.3% compound annual growth rate has been projected for 2021 to 2028.
This is a global cake you want to take a slice from.
CBD oils are so well accepted that there is also a market for pets, with CBD often used to calm them, help with pain, fend off epilepsy, and more.
There’s a lot in it for you as a distributor of CBD oil:
- There’s a market for it with a high growth projection
- It’s a legal business
- Its profit margins are high
- It feels rewarding knowing that you’re helping people improve their wellness.
How to become a CBD oil distributor in the UK
Becoming a CBD oil distributor is easier than you imagine because there’s already an effective production and market in place. However, there’s some key knowledge you need to gather as a newbie penetrating the market:
- Get to know the market. Choose your target customer carefully: for example, you could focus on health stores or grocery stores.
- Know your market by source and by product.
- What kind of distributor do you want to be, a wholesale seller or a white label partner?
- Decide on the right product.
- Pick only high-quality CBD oil to sell.
Furthermore, it’s best if you choose a brand whose oils are extracted from organic industrial hemp and produced under strict hygiene. That way, you can be sure they’re free of pesticides, solvents, and heavy metals that can put at risk your customer’s health.
It’s also vital that you know the categories of CBD oil available and decide if you want to stock all ranges: full-spectrum, broad-spectrum, and isolate. You should also decide whether you will sell vapes, tinctures, capsules, edibles, etc.
Find a quality supplier. Don’t just find any supplier to partner with, find one that follows the regulations, is licensed, and is open about third-party testing.
Working with a supplier who has great customer service will make your work easy. This will show in their website reviews and how fast they respond to emails. You need a supplier who responds quickly whenever you need restocking.
Sign up with trade organisations. The CBD market is still new. Government can implement new changes at any time. To regulate the CBD market, several trade bodies have been formed. Joining them will keep you updated on the latest changes that may occur and help you follow best practices and standards. The Cannabis Trade Association CTA is the leading body and can provide you with current trends, networking, and helpful information that will help grow your business.
Knowing what the law requires for CBD oil distribution
CBD oil is legally approved and sold as a food supplement in the UK, which means that several regulations guide the production and sales of CBD products.
Here’s what the law requires:
- The CBD you sell must be extracted from an industrially grown hemp strain of cannabis that has no more than 0.2% THC.
- The extracted oil ready for sale must not contain more than 1mg of THC traces in each bottle. This quantity isn’t enough to cause a psychoactive effect on users.
- When advertising and labelling your oil, you’re restricted from claiming that the oil is for medicinal use. Your product description must only state that the oil is a supplement to support your health and not a cure for ailments.
- If you want to sell as medicine, you must get a licence from the MHRA and substantiate your claims with research.
Licencing is not needed by everyone. Food and drinks containing CBD have been classified as “novel foods,” therefore manufacturers must apply for and get their novel food licence before selling. This regulation came into effect on February 13th, 2020. If you’re only going to be marketing CBD oil, you may not need a novel food license. However, it’s safer to request to see the approval status of your supplier just to be sure they’re regulation-compliant.
Setting up your CBD oil distribution business
Now that you know how to become a CBD oil distributor in the UK and what laws to follow, it’s time to start setting up your distribution business. Your next step is to:
- Create a clear business plan as needed
- Set up a physical and online shop to operate from. Your business needs a name, a good website domain name, and a social media handle that depicts what you sell.
- Set up your payment methods, shipping method, and open a business bank account.
- Your product design should make no medical claims and labelling should be clear.
Steps to becoming a successful distributor
So you’ve got everything in place. Your business is up and running already. However, it doesn’t stop here. To become a successful distributor here are some extra steps to consider:
- Don’t cut corners. Never settle for low-quality CBD oil just because you want to increase your profit margin or because you now have a good customer base.
- Maintain a top-quality brand. To avoid pitfalls, follow the rules.
- Have a well-working customer service channel.
- Be informed. Know the product you sell by learning everything about CBD oil like benefits, prescription doses, reported user stats, etc. That’ll help you guide customers who ask questions or wonder why to buy from you instead of your competitors.
Q & A on how to become a CBD oil distributor
Who is a CBD oil distributor?
A CBD oil distributor is a reseller of the oil. They buy from the manufacturer and sell to retailers and store outlets in small quantities.
As a distributor, you buy bulk quantities at a low rate, add your profit margin, and resell to food, cosmetics, and drug stores. You can also buy raw extracted oil like an isolate and brand it.
Do I need a reseller license in the UK?
No. If you’re only going to buy an already packaged brand to sell, you don’t need a license. However, if you want to buy just the extracted oil from a manufacturer and add your value to it, you may need some sort of licensing.
Are there price regulations and how much can I charge?
Currently, CBD oil prices are not regulated. Nevertheless, you want to charge a reasonable fee after all costing is done. The price you charge largely depends on the oil quality and the extraction process.
CBD has recently exploded into the wellness market. As a supplement, CBD oil is widely accepted for health-supporting purposes and is now legal to sell and use.
UK market growth is estimated at £2.31 billion by 2024. With such rapid growth, it’s the right time to learn how to become a CBD oil distributor in the UK.
It should be noted that there’s fake CBD oil in the market, so choose your supplier carefully. Opt for a supplier who is open about their certificate of analysis, third-party lab results, and uses organically grown hemp.
Lastly, never stock low-quality CBD products to save money. Remember, your customers are counting on you for quality and value for their money!