Linking Distributors with the Brands Who Need Them
The power of connection is undeniable. Brands need distributors to get their products on the shelves of retail stores across the state. Distributors want to work with quality brands to help grow their reach and boost their sales. With CannTrade, businesses become instantly connected to networks that can help them flourish. Finding the right distribution company for your brand is part of what we do.
Wholesale distribution is crucially important for products and brands within the cannabis industry. Without effective distribution, even amazing products are likely to struggle. Conversely, if outfitted with excellent distribution, marginal product companies will often flourish. But what does cannabis distribution look like in separate emerging markets? How is the distribution in California shaping up? And how can product companies, both new and established, connect with the distribution options that are best for their business?
In regulated markets such as the cannabis industry, distribution is more than just delivering products from point-A to point-B. Distribution is made up of 3 key elements, Logistics, Sales Representation, and Quality Assurance (Labs). In CA, distributors are also responsible for collecting excise and cultivation taxes from retailers and suppliers and remitting those taxes to the state. That said, not all distribution companies do it all. Some focus specifically on logistics, warehousing, and fulfilling orders. Others come complete with sales teams and marketing services, helping to educate your target market and push your product into dispensaries. When looking for a distribution solution that best fits your business, it’s just as crucial to know what services a distributor offers as it is to know with how many retailers they have accounts.
What do Marijuana Distributors Do?
CannTrade makes the sharing of order, product, and inventory information between distributors and brands seamless. CannTrade is unique in the way we facility communication between business. Simply set up order forwarding and fulfillment and link your product listings to your distributor to automate the wholesale process. Never again will an account go unserviced or an order fall through the cracks. Learn more below.
It’s widely known that the largest logistics companies such as UPS, DHL, FedEx, Amazon, and the USPS, who handle delivery and logistics for just about every other industry, do not handle marijuana products. This leaves the job of warehousing and fulfilling statewide orders for billions of dollars of cannabis and related products annually to licensed cannabis distribution companies. CannTrade works with several distributors with both regional and statewide reach and can help connect businesses to the distribution companies that offer the right fit. Once signed up with CannTrade, your business can be introduced to companies prepared to get your product into shops across the state.
Sales Representation and Relationships
Who can best handle the sales representation of your products? Will you hire an internal sales team? Outsource a specialized service? Or would a distribution company that offers sales representation be best for your growth?
If your company already has strong sales talent, you may opt for a distributor that is focused solely on logistics…that is, warehousing your product, managing lab testing and QA, and handling deliveries to shops. However, in many cases, it is more cost-efficient and effective to lean on distribution companies that offer built-in sales representation. In many ways, the CannTrade platform allows suppliers and brands the best of both worlds. You have a way to digitally represent your brand, take orders online 24-7, and forward relevant orders to the distribution companies you partner with so they can do what they are best at.
CannTrade software seamlessly galvanizes this process so nothing is missed, and all companies involved can track orders that come in.
Quality Assurance and Tax Collections
In many states, distributors are tasked with ensuring that products are lab tested. Products are quarantined in a warehouse until test results are returned and the products are approved for recreational or medical use. Some states also require that distribution companies act as tax collectors for all business within the sale chain. In California, for instance, these companies collect and remit both the cultivation and excise taxes when products are received and delivered. When considering and distribution partner, it is extremely important to go over their process to understand how they handle these workflows.