Back In 2021, there was 60% of cannabis purchases that were delivered, which is a 50% increase from 2020 in just one year. With that type of sales growth, any dispensary, whether retail or medical, not offering a delivery service is missing out on thousands of dollars in revenue while also running the risk of losing clients to businesses that provide a delivery service. Any company that is outsourcing cannabis while having a cannabis delivery option is necessary for today’s market. Not realizing delivery isn’t as simple as it seems, many dispensary owners try to implement one themselves. This is especially true when delivering a Schedule 1 narcotic.
From managing drivers to adhering to state regulations to building a robust app, adding a delivery service can feel like a second full-time job. And which dispensary owner has time for that? Thankfully, this is where outsourcing cannabis delivery comes in since there has been innovation in every vertical of the cannabis industry. When it comes to implementing a delivery and logistics service, it’s no different. However, you also need to know the legislation per state to proceed and abide by the rules. Partnering with a company specializing in outsourcing cannabis delivery can ensure you stay compliant and operate smoothly.
With tons of options, what should cannabis retailers look for when considering outsourcing cannabis delivery in 2024 and beyond? This can be a great way to streamline operations and increase revenue.
Here are Five Must Know Guides If You are Outsourcing Cannabis in Delivery:
1. Logistical Knowledge
Cannabis delivery is a relatively new vertical, but logistics have been around forever. Partnering with a company that has experience in logistics, supply chain, and chain of custody is critical to a successful cannabis delivery service.
Dispensary owners must gauge their new partners’ understanding of logistics and the cannabis industry. Besides compliance, understanding how to move products efficiently and quickly is the name of the cannabis delivery game. There’s always risk in any new business relationship, but in a complicated and heavily regulated industry, finding a third party with logistics experience will prevent future problems.
2. User Experience
When adding a delivery service to your dispensary, an app that provides customers with an excellent experience is not just a nice-to-have but a must. A glitch-filled app can drive potential customers away, leading them to choose another business for their cannabis delivery. On the other hand, a clean, robust, and user-friendly app can significantly increase the likelihood of repeat customers, thereby boosting your revenue and reputation.
3. Technology Integration
The delivery technology that a third party brings to your business needs to integrate with point-of-sale systems and state-authorized seed-to-sale platforms not only accurately to manage inventory but also to provide a seamless shopping experience, cost-effective driver dispatch, and instant payment processing. Look carefully at your vendor’s capabilities. If all of this sounds like a lot, it is! It’s all necessary for a successful cannabis delivery operation. But that’s not all the delivery technology needs to accomplish. Knowing how long and when a delivery will arrive makes life easier for the customer and the dispensary owner. It also ensures dispensaries stay compliant with local laws and regulations that require the tracking of cannabis products. This makes having accurate GPS tracking software imperative to the delivery experience.
4. Understand Outsourcing Compliance
The most important part of any cannabis delivery is staying compliant with regulations. Cannabis retailers who attempt delivery independently on their own will need to ensure their drivers understand these laws. Additionally, dispensary owners need to enforce them. Some states require handhelds for payment upon delivery. Is a lockbox in each vehicle needed to store the cannabis product while being driven to customers’ locations? Can one driver make a delivery, or do state regulations demand two people to be in the car?
When using a third-party logistics company, dispensary owners shouldn’t have to stress over any of these compliance issues, as the outsourced delivery business should handle any regulatory concerns. This dramatically reduces the risks of any violations and lessens the dispensary owner’s stress.
5. Tracking Data for Cannabis Distribution
A delivery platform should provide insights into each delivery. The data collected can be used to increase efficiency and lower costs for the dispensary. For example, suppose there’s a gate with a passcode. In that case, third-party delivery services allow drivers to amend instructions and add details to help drivers complete delivery without having to contact the customer. This saves time and creates a seamless experience for the dispensary, the customer, and the driver.
As mentioned, data can track delivery times and provide real-time updates for customers and dispensary owners, ensuring the business stays accurate and compliant. Other data can aid advertising efforts by allowing dispensary owners to geofence certain areas to offer products according to sales data collected from the cannabis delivery platform.
Many dispensary owners who implement a delivery service themselves “leave meat on the bone” by missing out on these data points. That can be the difference between a thriving delivery service and an average one.
Utilizing Cannabis Delivery Services
By outsourcing cannabis delivery, cannabis retailers can focus more on giving dispensary visitors a unique experience filled with excellent product offerings without worrying about the stresses and logistics of delivering cannabis. Dispensary staff can dedicate more time to individual consultations with delivery handled by a separate service. This allows them to educate customers about different strains, product types, and potential benefits, ensuring your customers find the perfect product for their needs.
Stick to Your Core Business
A fitting example of this strategy is the use of food delivery services by many nationwide restaurants. Whether a national chain or a mom-and-pop shop, many restaurants use Uber Eats, DoorDash, or similar services to deliver their products to customers’ doorsteps. These restaurants wanted to stick to their core business but not miss out on expanding their offering in a highly competitive market. That’s why they outsourced food delivery. Dispensaries, on the other hand, must also use services for outsourcing cannabis delivery services for their business because running a delivery service is like running another business.
Using a third-party delivery service alleviates a dispensary owner’s need to manage drivers and dispatch, maintain vehicles, source insurance, and handle orders. It also ensures dispensary owners can not only compete in a competitive industry by gaining insights to earn more revenue and achieve more efficiency in their operations but also eliminate headaches.