Should I Work with a Hemp Extract Manufacturer or a Wholesaler?

Should I Work with a Hemp Extract Manufacturer or a Wholesaler?

Deciding whether to work with a Hemp Extract manufacturer or a wholesaler directly is a very important decision when building your business’ brand. The choices can be overwhelming and there are definitely some pros and cons to both. This often leaves the question, “should I work with a hemp extract manufacturer or should I purchase my products from a wholesaler and/or (broker)?” So, let’s explore which is the better choice for building your brand.


Purchasing your Hemp Extract products directly from a manufacturer has many advantages. The biggest one being you can cut out the middleman, thus reducing your product costs and maximizing your profits. When you work with a hemp extract manufacturer directly, you are not paying the additional markups usually added on by the wholesaler.

Another pro is, you know the specific details and quality of the products you are purchasing. This is because the manufacturer is handling the entire process of producing your products, which includes the sourcing of the raw ingredients, formulating, packaging, etc.

Also, a huge benefit to work with a hemp extract manufacturer is the transparency and traceability you get to ensure the quality of your products. This is extremely important because there are many standards, requirements and regulations that a manufacturer must comply with to make sure the products they produce are compliant, tested and safe for use and consumption. When you work with a wholesaler, it can be difficult to be assured these requirements and standards were ever met in the development of your products.

Additional benefits of working directly with a manufacturer are product customization, scalability, and the simplicity of receiving a refund or credit for products damaged or needing to be replaced.


There are also many pro’s to working with a Hemp Extract wholesale supplier. The most evident and common pro is having access to a variety of products and ancillary services that can be offered. These available products and services allow the wholesaler to provide you with additional value and more reasons to work with them. This may also allow you to only have to work with one company for all your product needs.

Because most Hemp Extract wholesalers offer a finished and ready to purchase product, another benefit is the amount of time you can save by spending less time developing your products and more time with other important business activities.

Another big advantage of working with a wholesaler is the ability to purchase your products at lower quantities (MOQ’s). This is a great benefit for start-ups and businesses that have limited resources and do not want to tie up all their money in inventory. By being able to purchase product in smaller quantities, you have more money available for other important areas of your business.

Overall, working with a wholesaler can be very convenient and beneficial. However, there are a few things to keep in mind. A wholesaler cannot always guarantee consistency and sourcing. This is important because there are many new laws and regulations that are going into effect protecting consumers of Hemp Extract products.

Also, be aware of wholesalers that focus on their profits more than the quality of the products they offer. The wholesalers’ business model is to purchase products from different manufacturers at the best price possible and then resell to you marked up for a profit. This business model inherently encourages the wholesaler to not always source from the same supplier or manufacturer.


It can be tempting to want to manufacture your own products because you think it will be more profitable, but this can actually lead to more obstacles and hinder your business’ growth. There are many licenses and testing phases that go into product development. This can lead to time consumed, as well as money that must be put into making sure your products are up to quality standards, compliance, laws and regulations. Equally important, it can increase your liability. In addition, the variety of products that you can sell are limited to the ones you manufacture.


Ultimately, the decision to work with a hemp extract manufacturer or a wholesaler directly is going to come down to what your specific business needs, resources and priorities are. As mentioned, you have many options and there are pros and cons to both. If you’re looking for the best of both worlds, you can work with a hemp extract manufacturer that also white labels and private labels products, as well as offers products readily available for purchase.