Ever since the legalization of hemp in the U.S., more and more entrepreneurs are trying to get into the highly-profitable private label CBD arena. Demand for safe, effective CBD products is growing, and Amazon is a goldmine for selling these goods.
Advantages of Private Label CBD
A private label product is often better than alternatives, such as white labeling. A white label sells the same generic product formula to different companies – think Whole Foods and Walmart – which can then re-label the product and market it according to their brand. White labeling works best if your business has already built up a name for itself. Buyers know you for excellent products, so white labeling helps you expand quickly.
But as a business owner for a new or young brand, you’ll want to start in the private label space. These services will allow you to create a brand name and distinguish yourself from your competitors. Best of all, only your business will have your products.
Working with a Manufacturer
Instead of creating your brand totally from scratch by trying to manufacture your own products, consider partnering with an existing manufacturer to bring your private label to life. Manufacturers have the experience, equipment, and space to make products on a larger scale than you would in your garage or warehouse.
This way, you can leave the backend production and professional quality testing to the experts. At the same time, you can focus on building up your brand through marketing and other customer-facing aspects of the work. Choosing a manufacturer is a significant move, and CBD Nationwide is here to help.
As you get started, you will also need to consider where you will be placing your products to get the biggest sales and returns. Right now, there is no bigger market in the U.S. than Amazon.com.
How to Sell Private Label CBD on Amazon
Many CBD vendors have tried to sell on Amazon with little success. They are often getting their products flagged and taken down within days. Why? Although it is legal to buy CBD in all 50 states, Amazon bans the sale of many drugs, including CBD. The company sells products to many countries where CBD is not yet legal, so it is extra cautious.
Yet, some people selling private label CBD have managed to bypass Amazon’s restrictions and algorithms.
According to a 2019 Washington Post article, companies skirted Amazon’s regulations by placing CBD products on Amazon without mentioning CBD in the description or advertising. However, savvy consumers who heard of the product elsewhere and Googled it would know that it contains CBD.
What are the easiest ways to sell your CBD product on Amazon while building your brand and avoiding any penalties?
- Stop mentioning “CBD”, “cannabis”, or “cannabidiol” in your product descriptions or images.
- Use other descriptors such as “hemp extract” or “hemp oil drops.”
- Don’t advertise your product as a cure for illnesses like cancer or Alzheimer’s Disease.
- Find a graphic designer and CBD writer to make your listings shine.
- Build trust with repeat customers and ask for reviews.
Grow Your Private Label CBD Business Today
Beginning a new venture may be daunting, but there’s no better time to get involved in the private label CBD space, especially as it will likely grow into a 23-billion-dollar industry by 2025.
As you’re getting your private label CBD business started, consider choosing CBD Nationwide’s manufacturing services. We’re happy to answer any questions – contact our team today
Katie DeVoe is an in-demand educator, speaker, and thought leader in the hemp space. Over the last 12 years, she has started multiple, successful CBD businesses and been a guest speaker at numerous hemp and CBD conferences.