If you have a store or want to open one, and you want selling CBD products to be a part of your business, then you will need to decide how you are going to buy and stock your product. Some stores simply act as distributors — providing a storefront for CBD companies to sell their products. Other stores buy CBD at wholesale prices, and then mark it up to make a profit. There is no right or wrong approach here. It all depends on your preferences and how you would rather do business. To help you decide on your approach, take a look at the pros and cons of buying (and reselling) wholesale CBD.
Pro: You can use the CBD to make other products in-house.
If you buy large quantities of wholesale CBD, you can then use it to make other CBD products, like soaps, lotions, and candies, in-house. In doing so, you create your own brand. Buyers like to buy items straight from those who make them. You can advertise that you do this, and it will attract a lot of customers.
Con: You have to worry about the product expiring.
CBD does not last forever. Most tinctures and oils last about a year, and you will want to sell them well before that so they still have some shelf life when the purchaser takes them home. If you buy more wholesale CBD than you need and some ends up expiring before you sell it, that eats into your profits.
Pro: Bookkeeping is simple.
As far as accounting goes, it's simpler to buy and resell wholesale product than it is to basically consign another vendor's product. You list your purchase of the CBD as an expense and each sale as income. If you were to act as a middleman vendor instead, you would have to calculate what percentage you keep, what percentage the vendor keeps — and so forth. That gets complicated, especially when you're a small business owner doing your own accounting.
Con: You may have to buy a lot of the same product.
Vendors typically require you to buy a certain amount to get the wholesale price. For instance, you may need to buy 100 bottles of CBD oil to get the wholesale price. If your sales are slow, this can be a lot of product to move at once. You'll really have to market yourself well to kick sales up a notch!
Buying wholesale CBD and reselling it is often the easier approach for store owners. Reach out to a wholesale CBD supplier to learn more.