It isn’t that long ago that the potential benefits of CBD oil were something only a dedicated few fans were aware of, then suddenly this wonder supplement seemed to burst onto the global market, gaining traction faster than could ever have been imagined.
Inevitably, when a product makes such an impact on the market there are plenty of entrepreneurs ready and waiting to jump onto the bandwagon, and CBD oil is a perfect example of this in action.
Of course, in many instances competition in any commercial market can only be a good thing. This is what helps to regulate prices as products intended to appeal to all budgets are typically created – often these are direct copies of big brand name items, sold under own brand labels. However, they can also be sold in no-brand packaging, becoming a generic product, or as a private label item.
Think about the mini soaps you often find in a hotel bathroom, or the chocolate on your pillow. These are usually in packaging which includes the hotel’s name – these are perfect examples of how private labels work.
The popularity of CBD oil
Fans of CBD oil are keen to share information and research findings on the range of things it is said to help with. These include pain management and relief, sleep problems, epilepsy, depression, acne and anxiety. The amazing results people around the world report as a result of using CBD oil helps explain the popularity of this product.
CBD oil is available in many forms, such as tinctures, lip balms, capsules, e-juice, skin creams and even bath bombs, so there’s a huge market in terms of both consumers and product range.
The market for private label CBD oil products
Due to the sheer size of the current and potential market for CBD oil there is obviously a huge opportunity for marketers to cash in, particularly through the private label route.
A quick overview of private label products
Any item which is produced or manufactured by a company but then sold under another name is technically considered to be ‘private label’. This is a common practice in all industries, from cosmetics and personal care items to food and drinks. In most cases they are sold as a cheaper alternative to a big name product, though it’s not unknown for a private label to be promoted as a premium item.
Most people will be familiar with the ‘own label’ goods available in most stores, and these are probably the best own version of private label products around. These are generally cheaper than big name brand equivalants and developed to meet specific demographic consumer groups around the country.
Private label products like CBD oil can also be sold after being packaged with a buying company’s specially designed labels. The person or people behind this kind of strategy could be a big name wishing to diversify without drawing attention to themselves when selling a product outside of their usual range, or an independent budding entrepreneur who cares about little more than sourcing the cheapest CBD oil and selling it on for a decent profit.
Buying private label CBD oil products
Some people prefer to stick rigidly to buying from big brands, there are plenty more who are open to private label products – although this may be limited to particular type of products.
When it comes to CBD oil products consumers may be less aware of which products are produced by famous name in the industry, so the potential for sellers is perhaps wider than it may usually be. It would be natural to feel wary about buying private label CBD oil products, so here we look at the pros and cons of doing exactly that.
The pros of buying private label CBD oil products
As you’d expect, there are lots of advantages to buying this type of CBD oil products. These include:
• They are often instantly trustworthy
This is especially true for private labels which are sold under a well own retailers ‘own brand’ name. These can be trusted as the retailer retains responsibility for sourcing and selling a safe and legitimate product. The reason they even bother is that this method allows them to cut out some sections of the sales chain, and consequently leave them able to offer the product in question at a lower price.
• Experienced sellers
It’s pretty common for those already experienced in one section of commerce to get involved in buying private label products, and it’s best to stick to these, (whatever you want to buy), rather than those sellers looking to make a quick buck by jumping on the bandwagon of a popular product.
• The price is attractive
There wouldn’t be any point in a retailer investing in the private label market if there was no financial incentive for people to buy the end result! Don’t forget that there are fewer advertising costs involved too.
• The range of choices
It’s not usual for products which are pretty niche, like CBD oil is in the supplement industry despite its amazing economic success story, to appeal to smaller retailers who have the flexibility to jump on a new product really quickly and make things happen. This allows for more choice on the market, especially as smaller or independent retailers can afford to stock the cheaper option on their shelves.
Buying from a well respected, established and trustworthy company selling CBD private label products is the best way to be confident you are purchasing a top quality and safe product. As the market for CBD oil is growing so fast there are more well known and trusted CBD oil producers and sellers offering a private label service. This is likely to be the most trustworthy route to take if you should want to get a piece of this action.
The cons of buying private label CBD oil products
It’s sensible to consider the issues which may be less than positive when you are looking to buy a new product, whether it is private label or not. In the case of CBD oil, a product designed to be consumed, this is probably even more critical. That’s why it’s well worth looking at the possible disadvantages of buying private label CBD oil products.
The good news though is that many of the typical disadvantages that come with this form of selling simply don’t apply to CBD oil products – perhaps because these are newer to the market.
• You need to do more research
Any product is only as good as the manufacturer producing it, and that process is controlled to some extent by the person who decides on things like ingredients and costings. While you may take a big name at face value, private labels may need to be checked out a little, to be sure they are completely legitimate.
• It’s a wide open market
Remember that anyone can decide to start selling CBD oil under a private label. They are free to sell most things, and can add whatever they like to the items they buy from a manufacturer to sell on. You could easily find private label CBD oil for sale which has been through several pairs of business hands already. That’s an awful long way from its original source.
• The good may not be top quality
There are two types of private label products – those created as a ‘just good enough’ alterative, designed to appeal to serious money savers, and those of great quality which are cheaper because they are subject to less advertising and are just generally cheaper to get to market.
• Selling outlets may be restricted
It’s more likely that a buyer looking for private label CBD oil will need to shop online, as strictly private label brands are not often sold alongside household names. Of course, if you are in a store dedicated to CBD oil related products then you may find things are different. The greater traffic alone is enough reaon for a dedicated store to expand their stock.
• Labels are not always trustworthy
There have been small studies where a selection of random CBD oil private label products have been sourced both on and offline, and randomly tested against their brand name equivalents. The results showed things such as CBD oil gummies with up to three times less CBD levels than they were promoted as having, one had none at all! Some were found to not meet adequate safety standards for people to consume, another had lead in it. The sellers seem to have clear justifications for these results, but claiming a product meets the standard of a particular lab isn’t always a positive thing.
It’s too easy to pass the buck
Private label products don’t have the traceable background a known label product has, which makes it more difficult, if not almost impossible sometimes, to trace the origins or chain sources of something like CBD oil. Plus, in the unfortunate event that there was something wrong with the product and you were caused harm it would be more difficult to prove where the blame should lie.
What to look for when checking out private label CBD oil
To be fair the following point are just as important when looking at branded oils, but here we are concentrating only on private label products.
The information given should clearly state the CBD oil is extracted from industrial hemp, but double check it is made from actual hemp plant flowers and leaves, rather than hempseed oil.
The latter is said to be a very beneficial healthy food supplement but its benefits are unrelated to CBD oil derived from the actual plant as hemp seeds never contain cannabinoids.
The extraction method
There are a few ways this can be done but the best results come from Co2 extraction. It will probably push the price of the CBD oil up a little but it is worth it.
The source of the hemp
For good quality private label CBD oil look for hemp grown in either America or Europe with an official license, as better legislation means a safer and better quality product. You may see cheaper options from India or China but there are reasons why the price is low, and they are not positive. For example, the hemp plant is hardy and able to grow in pretty much all soil conditions, but if there are bad things present it will absorb them. That’s why it is crucial the hemp is grown in organic conditions.
Evidence of an independent lab report
This is vital, never buy a private label CBD oil without it. This is the only way you can be confident the oil is what it claims to be.
Clear information on the label
Look for things like clear instructions for how much CBD oil to take at one time, how it should be stored, warnings on things such as any health issues which rule out using the oil, and if anything else has been added to the oil.
More about fake or unusable CBD oil
Taking the time to make these checks may seem a little tiresome or over the top, but the sad truth is there are people out there who will sell oil under a private label and at a low price tag – despite knowing it is not fit for human consumption. Growers may use pesticides and other chemicals to allow hemp to grow in poor soil conditions, use solvents to extract the hemp oil, or even package the oil in a way that heavy metals leak into the oil.
Eventually, it seems likely that all CD oil will be subject to legislation and proper testing throughout the entire process, but until that is the case the responsibility for sourcing a safe product is on the buyer’s shoulders.
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