5 min read

Guide to Cannabis E-Commerce Future

August 16, 2023

Picture this – it’s a lazy Sunday afternoon, and you’re curled up on the couch with your favorite snack and a good book. Suddenly, you realize you’re running low on your stash, and the thought of getting dressed and stepping out sounds like a nightmare. Well, worry no more! Thanks to cannabis e-commerce, you can now purchase your favorite products in just a few clicks and have them delivered straight to your door within a few hours. With the cannabis industry growing rapidly, it’s time for dispensaries and retailers to get on board with this trend.

Growing Demand for Cannabis E-Commerce

Cannabis Market Overview

The cannabis industry has rapidly grown thanks to its legalization in many countries. In countries where it’s legal, like Canada, the US, and parts of Europe, the industry is projected to reach $130 billion by 2024. This growth has been driven by factors such as increased awareness of cannabis’s health benefits, legalization, and changing attitudes toward it.

Consumer preferences

Consumers increasingly seek convenient ways to access their favorite products, and cannabis is no exception. With e-commerce, they can browse and buy products from the comfort of their homes or on the go. This convenience has made cannabis e-commerce attractive to customers in countries where it’s legal.

Shift to Online Shopping

The trend towards online shopping has been growing in recent years, and e-commerce is reshaping the business landscape. With more customers shopping online, dispensaries and retailers must take their businesses online to stay competitive. In fact, cannabis e-commerce is estimated to grow by 20% annually, making it an essential part of the industry. Cannabis E-commerce is here to stay, and businesses that embrace it will reap the benefits.

Benefits of Cannabis E-commerce for Dispensaries and Retailers

This growth of the industry calls for a need for dispensaries and retailers to expand their reach to cater to their consumers better. While physical locations are beneficial, adding an online store enables customers to access their products remotely.

In today’s fast-paced world, customers prefer convenience, and online shopping provides just that. It saves their time and effort commuting to a physical location, improving the overall customer experience. In addition, the pandemic has accelerated the shift to online shopping significantly. With social distancing guidelines in place, customers were more inclined to purchase their cannabis products online. And now, it has become the new norm, and retailers must adapt to meet evolving consumer needs and preferences.

An online store can increase the visibility of the shops, as more than 70% of shopping journeys start from the search engine. By focusing on search engine optimization (SEO), businesses can be discovered when and where consumers are searching.

An online store enables businesses to expand their reach, breaking barriers of geographical locations. With a wider customer base, businesses can attract repeat customers and grow their sales revenue.

Online stores provide customers with detailed product descriptions, enabling them to make informed decisions. It improves their product discovery experience and helps businesses to upsell their product offerings. They allow customers to browse products and place orders at their convenience. Pickup options, including curbside and express orders and delivery models, can be integrated to enhance the overall customer experience.

 Online stores allow for streamlined inventory management, reducing the risk of overselling a product and underselling another. Inventory levels can be monitored in real-time, enabling businesses to make informed restocking decisions efficiently.

Choosing the Right Provider for Cannabis E-Commerce

Choosing the right provider for cannabis E-commerce can be a tricky task. Dispensaries and retailers must consider several factors to find a provider that will meet their digital needs. It is essential to find a platform that offers the right features and capabilities that are customized to the cannabis industry. 

Factors to consider when selecting a provider include a deep understanding of the cannabis industry, technical support, payment processing options, inventory management, and compliance with state and local regulations. Customizable menus that reflect the dispensary inventory, loyalty programs, integrated payment systems, and marketing automation are also important. 

Key questions to ask potential providers are about their experience with the cannabis industry, their security measures for protecting customer data, compliance with regulations, and their ability to offer relevant technical support. Additionally, it is crucial to evaluate the provider’s customer service quality around the clock to ensure efficiency in case of issues. 

Checking reviews from other businesses in the industry who have already implemented the provider’s solutions can also provide a helpful reference point. Customer Support is crucial, and the chosen provider must have regular check-ins with their clients to ensure their platform and services continue meeting business needs. 

Challenges of Cannabis E-Commerce and How to overcome them

Legal and regulatory hurdles are among the biggest challenges facing cannabis eCommerce. Since cannabis is still illegal under federal law in the US and other parts of the world, dispensaries and retailers must navigate a complex web of regulations to operate legally online. This includes complying with state and local laws, obtaining licenses and permits, and ensuring age verification for customers.

Payment and transaction issues are also a concern for cannabis businesses selling online due to the lack of access to traditional banking services. Many banks and payment processors refuse to work with cannabis businesses, making accepting credit card payments and other online payments harder.

Security concerns are also prevalent in the cannabis E-Commerce industry. Cannabis businesses must protect customers’ data from hacking, cyber-attacks, and other security threats. Dispensaries and retailers must ensure that their eCommerce platforms are secure and compliant with industry standards to protect their business and customers.


In summary, cannabis E-Commerce is a game-changer for dispensaries and retailers looking to improve business visibility, expand reach, and offer more convenience for customers. While there are legal and regulatory hurdles, security concerns, and delivery challenges, the benefits far outweigh the risks. Choosing the right provider and learning from successful online dispensaries can help overcome challenges and set businesses up for success in the booming cannabis industry.