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18 Nov, 2020|

How to Become a CBD Oil Distributor

CBD is short for cannabidiol – it is a chemical substance that is found in hemp and cannabis plants. CBD has received a lot of media attention in recent months and years. CBD is also growing in popularity in the UK and within the vaping industry.

Whilst CBD oil itself cannot be used for vaping purposes, there are a number of different CBD vape products which can be.

If you work in the vaping industry or are looking to start a vaping business, how do you become a CBD distributor?

How to become a CBD oil distributor

Set up your business

If you are new to the vaping industry, then setting up a business through which to distribute CBD for vaping purposes will be your first consideration.

Key areas to consider when setting up a vape business or vape shop are

  • Whether you need a licence to set up a shop
  • Whether you need a licence to sell e-liquids (including CBD vape products)
  • Having a thorough understanding of the Tobacco Products Directive (TPD) and associated regulations when it comes to e-cigarettes and certain e-liquids
  • Your role- will you be a retailer or a producer? What you are will determine your responsibilities under the TPD and other regulatory requirements in the industry
  • Whether you plan to set up as an independent vape shop or as a franchise of a bigger vape shop chain
  • Whether you will be an online seller or have physical premises
  • Set up costs – for example, shop leases and shop fit-outs to your specification if you plan to open a shop; or costs of website set up and marketing if you plan to operate online only
  • What products you will stock and their associated demand

If you already have an established vape shop or vape business, it is more likely that you will be looking at the demand for CBD vaping products and whether this is something that is right to add to your business and product range. It’s important that you do your research, reach out to your existing customers and wholesalers and have a thorough understanding of relevant rules or regulations that exist in relation to CBD products.

CBD related regulations

If you plan to sell or manufacture CBD products, then you must be aware of the rules and regulations which determine whether it is legal to sell CBD in the UK.

The Home office have produced a fact sheet relating to this which you can read here.

Other useful resources include the MHRA and the NHS.

If in any doubt, you may need to seek your own legal advice to ensure that you operate within any relevant legislation.

Choose your wholesaler

Choosing the product that you stock in your vape shop will be one of your biggest decisions. A big part of this will be choosing a wholesaler from which to purchase your products.

Some things to keep in mind when choosing a wholesaler include:

Specialist or general wholesaler?

Some wholesalers may specialise in CBD vaping products. Others may have a range of CBD based products to choose from alongside a wider range of e-liquids.

Compliance with regulation

It is vital that when sourcing your products that you work with a reputable wholesaler who is aware of and complies with all of the relevant regulation set out by the TPD.

Product knowledge

Given the differences between CBD oil and CBD vaping products, you also need to be sure that your supplier (and you) understands the differences in products, which ones can be used for vaping purposes and which ones cannot. If you plan to stock a range of CBD products you will need to be very clear over which are suitable for vaping and which are not.

Are they registered with an industry body?

Looking out for whether a wholesaler is a member of the IBVTA or UKVIA could also be a good idea as both bodies offer support on compliance with regulation to their members.

You can read our recent blog on choosing a vape wholesaler for more tips and areas to consider.

Get the right insurance

As with any business it is also vital to get the right insurance for your vaping business.

The risks associated with a vape shop are very different to those of a traditional retail unit for example, so having the right cover in place will be key to protecting you against these unique risks.

Key risks to consider when it comes to arranging your vaping insurance include:

  • Product liability insurance
  • Crime – protect against theft, vandalism and cyber crime
  • Regulatory and liability litigation

As the approved broker to the Independent British Vape Trade Association (IBVTA), Anthony Jones are specialists in the vaping and electronic cigarette insurance market. If you are considering setting up a vape shop and have any questions about vape insurance, then don’t hesitate to get in touch with us today on 0208 290 9080 or email us at ecig@anthonyjones.com.