Nowadays, it’s easy to see why entrepreneurs are flocking to the CBD industry. The health and wellness space can be a very rewarding area to work in and the CBD sector alone was valued at 2.8 billion dollars in 2020. But how do you make your dreams of owning a CBD company a reality? Here we’ll discuss the most economical route to market – white labelling.
What is White Labelling?
White labelling isn’t unique to the CBD industry, in fact, when you see a supermarket’s own-brand products on the shelves, you can bet a white label manufacturer produced them. White labelling is a common practice that involves a manufacturer creating a product or service without a brand and logo so the purchasing company can make it their own.
A good white label manufacturer will have rigorously tested their products and nailed their formulas. While white-label CBD manufacturers won’t exclusively produce products for your company, this process allows you to create a line of your products with little manufacturing effort.
How Can it Help Your Business?
Most brands are unlikely to have the financial investment for the tools and equipment required to make their own CBD products, so white label manufacturing solves a huge problem straight off the bat. While this is the most obvious draw of a white label manufacturer, there are many other potential benefits to consider:
Time and energy to focus on your area of expertise
If your gifts are business and branding, it allows you to invest more time in your area of expertise rather than worrying about the intricacies of the manufacturing process.
Less financial risk
White label CBD products can be bought at low MOQs (Minimum Order Quantity) at relatively low prices. This means you can start with a few products with a small investment and observe the customer’s reception. A company must understand the customers’ needs in the early stages of business, but if one product isn’t selling as well as you’d hoped, you can adjust your range without taking too much of a financial hit.
Let your creativity flow
You have the creative licence over the artwork, packaging, and, to a degree, what goes in your product. You can also choose the price point and what’s in the product range. Some manufacturers will allow you to choose your hemp if you have a preferred hemp grower or grow your own.
On the other hand, if packaging design isn’t your thing, many manufacturers offer packaging solutions that can often be cheaper than creating and designing the packaging yourself.
Benefit from the manufacturer’s expertise in the field
Even though you might not be an expert in the hemp field, you can benefit from the manufacturer’s expertise in hemp, extraction and processing. Specialist hemp extraction machinery can be expensive, especially if you want CO2 extraction, which is considered the gold standard in the industry.
Find a Reputable Supplier
So now we’ve looked at how white label CBD can help your budding business, next up let’s look at the all-important decision of choosing the right CBD manufacturer. After all, the success of your business largely rests on the quality of the products they create. When choosing a supplier, there are a few essential factors to consider:
Take into account the source of the hemp and farming methods, extraction process and the quality of the ingredients, which can all affect the quality of your product. You also need to identify what type of CBD you’re offering: isolate, broad-spectrum or full-spectrum. While the last two types are thought to be more beneficial, these all come with pros and cons, so do your research and see what cannabinoids and terpenes the manufacturer can provide.
A transparent and reputable CBD manufacturer will provide a detailed report showing the molecular compounds like cannabinoids and terpenes used in the products. This document is known as a certificate of analysis (COA) and will provide evidence to you and your customers about the potency and quality of the product.
The white label CBD manufacturer needs to meet the industry regulations and provide the relevant paperwork.
You need to make sure that the manufacturer can innovate in line with this fast-paced industry to stay ahead. You should feel confident that the manufacturer can accommodate any plans you have to expand and innovate your product line in the future.
As mentioned above, it’s essential to check that the minimum order quantities suit your business.
Shipping Turnaround Times
Often overlooked, but quick shipping can remove a lot of stress for you as a brand. Your white label partner must be able to deliver your products in just a few days to keep up with a demanding marketplace.
Your CBD manufacturer should provide fair pricing without compromising the quality of its products. Taking your time to review your potential supplier’s pricing structure helps avoid unwanted surprises like hidden fees, additional charges, and high shipping costs.
White labelling can make your dream of starting your own CBD business a reality with very little investment. It can provide the opportunity to sell a range of high-quality CBD products without worrying about the daunting details of production, testing, legalities and quality control. Using a white label CBD manufacturer gives you more time to focus on getting your products in front of your customers and bringing your brand to life. Just take your time when selecting a white label CBD company because the success of your business largely depends on their efficiency and the products they create.