When a Retail CBD Business needs new, or additional, products, there is a multitude of Supply Chain Solutions available when sourcing reliable, high-quality, and affordable, CBD Products. We all know that not all products are equal in the CBD industry, but, there is a lack of consideration with determining the benefits most businesses would receive when working with a product supplier that supports and understands your business through the looking glass of experience and passion.
As the CBD industry continues to grow in size and scope, anyone involved for any considerable amount of time knows that this has inevitably lead to less than reputable, and sometimes fraudulent, actors seeding distrust across the industry. This unfortunate fact isn’t exclusive to the CBD Industry, this has happened within many others including – very recently – Mobile Accessories, Integrated Circuits, and even Designer Clothes. These other affected industries have had similar problems that were mitigated in ways that minimized the risk of Bad Actors within the CBD Universe.
The FDA Has Entered the Chat
Government regulators, the FDA specifically, are well aware of these Bad Actors, and their methods. In 2020, some CBD Businesses had received significant fines after publishing unfounded medical claims that could easily mislead consumers. Beyond this, some sell scam products and, even worse, those who have committed fraud. CBD Businesses, at present, cannot rely solely on Government Regulators, they must take proactive measures to ensure consumer confidence in their Brand, and the CBD industry as a whole. This is no short order.
What must a business do to mitigate industry risks? How does a consumer regain confidence after having a bad experience? How can the industry set its best foot forward to remove negative reputational exposure? All great questions.
Scams, Frauds, and Bad Actors
There is no one-stop method to reverse the tide of Scams and Frauds as the scope is larger than one single entity. Each CBD Business must be conscientious and be responsible for the quality, and truthfulness, of their products – from the Farm to Manufacturer, to Distributor, to Retail Operator. Much like a financial auditor, lab reports, or COAs, have fortunately become commonplace and must be conducted by an independent and reliable Lab, and be made available upon request. This is the first step towards ensuring that all entities from Seed to Sale are beyond reproach. COAs, over time, has proven to not be enough.
The proof for the need for a greater industry responsibility is easily seen by looking for CBD products on Amazon (which is a product that is banned on their platform at the time of writing this article). Mislabeled CBD Products on Amazon are easily identifiable to seasoned users and industry insiders alike, but not with inexperienced consumers. Is purposefully mislabelling products constitute fraud? Like most things, it depends on who you ask.
If you were to ask the Attorneys at Chimicles Schwartz Kriner & Donaldson-Smith LLP, they’d probably tell you that yes, purposely mislabeling CBD Products is tantamount to fraud as they’re investing resources to litigate a class-action lawsuit against 17 different CBD Product manufacturers. This is likely a good thing for responsible businesses.
Determining Proper Supply Chain Solutions
Although product quality and fraudulent mislabeling are serious concerns, there are plenty of other considerations when finding a quality Supply Chain Solutions partner that can aid in the success of your CBD Business. Supply chain’s deal with the flow, quality, and efficiency of materials, products, and information. Here are a few basic considerations when matching a CBD Partner and your business’s needs:
- Information & Reporting Visibility
- Articulate & Proven Quality Controls
- Clear & Accurate Product Labeling
- Proven Track Record Within the CBD Industry
- Rapid & Reliable Product Fulfillment
- Traditional Shipping & Flexible Freight Options
- Involvement in Your Sales & Marketing Success
- Product Training for Your Business
- Technical Support for Your Business
What this industry deserves more of should come across, more or less, as common sense. What we must remember, though, is that previous young growth industries have experienced similar problems. We all must do our part to grow stronger because of it.
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