When it comes to the CBD industry, many new players are set on creating a whole new product from scratch. However, while this can work in some instances, finances, time and inflation are not always on their side. That is why white label products are so important and are increasing in popularity, especially in the CBD world. 

Read on to learn the 10 reasons you should white label your CBD products.  

Increased Popularity
CBD products are starting to reach more and more households every year. A report published in December of 2021 evaluated the global cannabidiol market to grow by $29.91 billion from 2021 to 2025. In the last 5 years, we’ve seen the blaze of CBD consumers spread from west to east coast as it’s gained popularity due to the hearsay around how it’s improving lives.

 

Demand for Preventative Wellness Products Grows
Plant-derived remedies are a fiercely growing category in the US market, and there’s no denying that “natural”, “plant-derived” and “organic” products are grabbing more market share year over year. These buzz words have become key marketing factors for brands looking to capture a broader audience. With so much controversy around pharmaceutical drugs, people have been seeking a more preventative wellness program than a reactive one.

 

High Profitability
It has been shown that CBD-infused products sell for a higher profit. Did you know that brands that purchase white label products are selling direct to consumers for 5-10x what it costs to stock? Even through distributors, most brands are able to achieve a 4-5x profit!

 

Quick, Simple, and Easy
It’s the simplest and fastest way to get started selling CBD. White label products are often inventoried and readily available for brands looking to get into the game and start selling. A startup could be as little as six weeks from the first consultation to the full branded, ready-to-sell product instead of months to years of testing and waiting.

 

Cost Efficient
Lower minimums mean lower start-up and replenishment costs. Manufacturers that white label formulas often allow their lowest possible minimum order quantity for these product types. This is because of the ease of manufacturing, plus the availability of ingredients and components used to make them.

 

Less Supply Chain Management
White label products require less supply chain planning. Piggybacking off of the point above, when ingredients and components are readily available because they are a part of a white label product, the turnaround time from purchase order to fulfillment is greatly minimized. This means when your inventory is running low, you can replenish in a shorter time frame.

 

Reduce Overhead
White labeling products helps your company stay lean in employment overhead. Sometimes, companies choose to do what is called private label, meaning that they work with manufacturers to create a truly unique product. This not only takes 9-18 months, or more, before launch, but it also requires a whole team of experts to create, review, manage and track their unique SKUs. Formulators, legal counsel, quality control specialists, and more are needed to ensure compliance and efficacy. Experienced supply chain personnel are then required to manage the flow of items that are required to produce the product at the manufacturer.  White label products are managed in whole by the manufacturer, so it’s easy to keep a lean team and maximize your profits.

 

Trustworthy Product
Performance and stability are already validated. Have you ever received products that had leaked or broken upon shipment? Where does discoloration or separation occur? This is often a case of lack of challenge and stability testing. White label products have stability data that validate the ‘best by’ dates and integrity of the packaging.

 

Consistency Every Time
Repetition creates consistency. When there is repetition in manufacturing, it goes like a well-oiled machine. Smooth and efficient, mitigating production uncertainty and increasing end-product consistency – which increases the chances of repeat purchases.  Said another way, if a consumer really loves a product and it turns out different in any way the following time they purchase, you may lose that customer indefinitely.

 

Conduct A/B Testing
You can test your brand’s marketing and sales reach before you differentiate with unique products. Many start-ups envision a game-changing product that’s never been offered but lack the funding and personnel to get started. I’ve worked with many folks who got started with white label and were able to raise funding for their unique SKUs after proving that their business plan was profitable. We create less risk when we start with white label services.

Have you been curious about white label services and starting to offer CBD products to your customers? Whether you are an established brand or are just getting your boots wet, EcoGen is known in the industry as the helping hand. We are there to help you make the right decision for your business every time. Contact us today to get started: www.ecogenbiosciences.com/contact-us.