The growing market for CBD is full of opportunities, but presents some significant barriers to entry. It’s one thing to recognize an underserved market and to dream up ways of serving it, but CBD is not a cottage industry. A simple bottle of CBD oil represents a complex production chain including hemp farmers, specialized extraction equipment, and painstaking lab testing.
Fortunately, there’s no reason for smaller retailers to reinvent the wheel. White-label CBD manufacturers like Organics Fulfillment provide the entire production chain, allowing retailers to focus on branding, marketing, and sales. Let’s take a look at what white-label manufacturing is, and how it can help newcomers to the CBD market.
What is White-Label Manufacturing?
“White-label” refers to a product or service delivered directly from the manufacturer, without any branding or other labeling. Retailers take these white-label items and add their own branding before selling them under their own names.
It’s hardly a radical idea. Supermarkets and big-box stores have sold white-label products for decades: when you buy the store-brand version of a product, you’re buying an item that started out as a white-label piece.
Store brands underscore one of the great advantages of white-label manufacturing. While it takes a bit of time and investment to apply a store’s own branding to white-label products, those costs are more than offset by a savings of marketing and advertising expenses. Store brands effectively piggy-back on the advertising efforts of established retail brands, competing on price at the point of sale.
How can White-Label CBD Help You?
White-label CBD products are excellent solutions for established retailers looking to add CBD products to their lines, and for prospective retailers hoping to launch new businesses oriented around CBD. Let’s look at how white-label CBD manufacturing can help each group.
Established businesses can use white-label manufacturing to add CBD products to their existing lines efficiently and profitably. By introducing CBD-enhanced complements to existing product lines, retailers can benefit from the same sort of passive marketing that larger companies enjoy with store brands. And the distinct benefits of CBD represent opportunities to upsell customers without devoting extra time and money to the effort.
New businesses use white-label CBD manufacturers to separate the production and marketing sides of the equation. This allows entrepreneurs to focus on what they do best—identifying and serving the most promising market segments—while carrying none of the overhead associated with maintaining a complete production chain.
What to Look for in a White-Label CBD Manufacturer
Before you strike a deal with a white-label CBD producer, you’ll want to pay close attention to a few key points:
- Trust, but Verify. Reputable white-label manufacturers like Organics Fulfillment will be happy to share detailed laboratory analyses of their products. The CBD market is growing crowded, and objectively provable quality can be an important differentiator.
- Ask About Volume. A white-label manufacturer won’t be able to share many details about the other companies it serves, but you should be able to get some top-level figures describing its volume of white-label business. Some of the biggest names in the CBD industry rely on white-label manufacturers, and you’re better off working with a company like Organics Fulfillment that’s already established a track record.
- Look Beyond Your Own Product Line. You might save a few pennies working with a company that specializes in one kind of CBD product, but in the long run you’ll be better off—operationally and financially—by starting with a company whose white-label product line is ready to grow with your business.