Looking to enter the wholesale cannabis market? Learn more about the industry with our comprehensive guide. Get all the facts you need before buying or selling!
Wholesale cannabis can be a profitable business venture for those willing to put in the time and research. However, before jumping into the industry, it’s important to gain a thorough understanding of local and federal laws as well as the types of products involved in wholesale cannabis sales. In this guide, we will cover all you need to know about entering the wholesale cannabis market.
Understand the Legal Framework.
Before entering the wholesale cannabis market, it’s essential for companies to understand the legal framework. This includes researching local and federal laws regarding cannabis purchases, sales, and transportation. For example, if your business will be operating across state lines or international borders, you must ensure that you are following all applicable regulations. It’s important to understand how taxes may apply as well as any labels required by regulatory bodies before beginning operations in the wholesale cannabis market.
Know Your Market Before You Start Buying or Selling.
Knowing your market is essential when getting involved in wholesale cannabis purchases and sales. It requires more than just being able to afford the product; it means being knowledgeable about the industry, trends, competitors, and regulations. A company that understands the industry will not only be able to access better deals but have a competitive edge over those who lack knowledge or insight. Market research is key for understanding the cannabis market and staying up-to-date on changes within it.
Be Aware of State Banking Regulations.
One of the most important things to be aware of when it comes to wholesale cannabis is the banking regulations associated with it. Despite being federally legal in many states, banks have been hesitant to offer accounts or services that involve the purchase and sale of cannabis due to increased federal scrutiny. This means that any company engaging in wholesale cannabis activity must take explicit steps to protect their investments, such as using payment processors or cryptocurrency solutions. Be sure to understand all the financial regulations within your state before entering into a cannabis deal.
Shop Around for Wholesale Partners and Prices.
When looking for wholesale cannabis, be sure to shop around for the best prices and partners. Look at various dispensaries and distributors in your area, as well as online suppliers, to get the best rate possible. Additionally, make sure that you are getting quality product. Research lab-testing procedures to ensure that whatever product you purchase is verified safe and of a high standard.
Get Familiar with Laboratories & Testing Requirements.
When purchasing wholesale cannabis, it’s important to familiarize yourself with the requirements of laboratories and testing. Cannabis products need to be tested for potency, pesticides, terpenes and other specific compounds to guarantee its safety and effectiveness. Most state regulations require that this testing is completed before any cannabis product can be sold or consumed by customers. Make sure that you are aware of the requirements of your particular jurisdiction so that you are able to purchase safe products every time.