MJBiz Buyers Guide: Cannabis Retail - 22

MJBizDaily Buyers Guide Cannabis Retail
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PLANNING FOR LAST-MILE
CANNABIS DELIVERY
Include plans for e-commerce and last-mile delivery to capture more revenue and brand awareness
for your cannabis dispensary, even if you are opening a traditional brick-and-mortar store.
The COVID-19 pandemic shift in consumers looking for online purchasing and home delivery options
has had a huge impact on cannabis, said Drea Ballard, regional operations director for Blackbird, a
Nevada-based cannabis software and delivery company.
When Nevada closed dispensaries due
to coronavirus restrictions, last-mile
purchases increased by 600% overnight,
Ballard said.
" They opened the stores back up, but
that was a wakeup call to everyone that
they need delivery services, " Ballard
said. " Every restaurant, you now have
an option for Grubhub. It's logical that
cannabis needs its version. "
IN-HOUSE OR THIRD-PARTY
DELIVERY?
While some cannabis retailers may
prefer to keep their deliveries in-house,
Ballard said there are many costs and
logistics to consider with cannabis
last-mile deliveries, especially compared to other sectors, like food, that have instituted delivery
systems.
" The costs and regulations of cannabis are entirely different. Insurance is five times as much.
Vehicle regulations are strict, " Ballard said, also noting that delivery rules can differ between
municipalities.
" What are the benefits of a third-party delivery company rather than doing it in-house? It's one
more person to hire in-house, " Ballard noted.
Last-mile purchases increased by 600% overnight in Nevada when
coronavirus restrictions shut down retail stores.
Photo courtesy of Blackbird
BUILDING BRAND AWARENESS THROUGH E-COMMERCE DELIVERY
The good news is that while e-commerce and last-mile delivery bring in new revenue streams,
offering and advertising delivery is also a great way to spread brand awareness, Ballard said. New
customers will find your store when they search for local cannabis delivery options.
" It's a great channel for marketing and advertising before it is more visible than just your store, "
Ballard said.
22
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MJBiz Buyers Guide: Cannabis Retail

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