DETROIT – The retail sale of cannabis and cannabis products like CBD oil and gummies, is one of the fastest growing industries in the U.S. and abroad. If not for ongoing federal legal regulation and associated problems with central bank financing, the industry and its healing, medicinal, and recreational products would be skyrocketing.

Or so says one Sacramento, CA area cannabis dispensary and delivery business that is not only dedicated to the personalized home delivery of CBD products to those who need and want them, but who also offer a comprehensive marijuana retail education via their company website.

In fact, the cannabis delivery business is a rapidly growing new business model. According to a new report, marijuana and its popularity has been around for a long, long time. However, its overall consumption has been recently touted by the masses. Only when cannabis was legalized on the state level for both recreational and medicinal purposes, did its popularity and use increase massively. Gone is the stigma of illegality and the danger of back-alley cash purchases.

Lots of businesses have achieved a particular success in the cannabis delivery sector. While starting a cannabis and cannabis byproducts business isn’t easy, the cannabis delivery business is said to generate significant revenue.

Three weed delivery business models are said to exist.

–Direct to consumer/customer

–Single storefront/retail

–Multi-Merchant system

Direct to Consumer Model

When it comes to highly populated, congested cities like New York, for instance, delivering products on time can be a real challenge. But utilizing the direct-to-consumer, or what’s also known as the “hub and spoke” model, can open up small franchise and/or branches in many cities. Direct-to-consumer cannabis business models are engineered so that they can cover a large geographical area and cater to a specific set of customers.

This is said to not only reduce delivery time, but also save on fuel. While this delivery business model is said to contain an upside of “increased sales” with minimal delivery costs and time, it is not without its roadblocks however. Experts say that one of the major obstacles is managing the orders, then mapping them out, and acting on them.

Single Storefront/Retail Model

The single storefront cannabis business model is said to operate at peak levels when you attempt to increase sales by building an online presence coupled with a delivery, direct-to-consumer model. Retail sellers already have a “well-scaled demography” which means they possess a keen understanding of their customer’s needs and wants.

By taking the retail outlet online utilizing cannabis dispensary software products in corporation with an at-home delivery model, cannabis businesses can scale sales on an exponential level. The business owner can use either a third-party delivery service, a gig worker(s), or maintain an in-house delivery staff depending upon their needs.

Certain cannabis dispensary software modules can assist you with building your online presence, from a great looking website to mobile applications and real-time payment systems. It will help you keep track of all your delivery people via a delivery management program.

Multi-Merchant Model

Experts attest that aggregator-based or multi-merchant marijuana product delivery business models are quickly becoming popular among owners in recent months. This is an older model that is almost guaranteed to generate excellent revenue. In a word, the model does not require you to store inventory which, in the cannabis business, can spoil and/or, outlive its date of effectiveness.

What you do instead is network with a number of local dispensaries who carry inventory. You then manage orders and schedule deliveries with them as necessary. What you get in return from working directly with the local and regional dispensaries is a commission. You can also charge a nominal delivery fee from the customers who have ordered deliveries.

Software that provides cannabis delivery marketplace suites will enable entrepreneurial minded business owners to add as many dispensaries to their company platform as they can handle. It also will enable individual dispensaries to manage their inventory and discounts independently. As a business owner, you can receive and/or settle commissions from cannabis dispensaries in real-time utilizing payment methods like Stripe and PayPal.

The Cannabis Outlook in 2022

The U.S. is not alone in slowly but surely legalizing the recreational and medical use of marijuana and its many derivatives. But it remains a new industry with a tremendous potential for exponential growth. Competition at present is low, which makes it great opportunity for “budding” young or older business owners who wish to own their own dispensary.

This column was provided by Khazen Ali.