Will E-Commerce Play A Pivotal Role In The Cannabis Industry In 2021?
If you look back at the last decade, the retail industry has undergone a drastic change due to the advancement and popularity of e-commerce. People worldwide prefer to purchase goods online with a single click rather than browsing brick-and-mortar stores. While many industries have been making the transition into the digital arena, it has not been a smooth journey for the cannabis industry owing to the many restrictions. As more countries are moving towards legalization, the industry is slowly opening up to e-commerce platforms.
Are you wondering how e-commerce will impact the cannabis industry in 2021? Dive right in to find out everything about the impact of digital commerce on the market.
How will e-commerce transform the cannabis industry in 2021?
Cannabis digital retail is thriving due to the recent wave of legalization taking over the world. There are all kinds of online stores offering a wide array of cannabis products, ranging from different herb strains to CBD products. And with the advancement of technology, there are multiple software and Salesforce Consulting Company available to track down your productivity.
The following are a few ways how cannabis e-commerce will impact the industry:
1. Increased access to banking:
While many states have legalized the sale and use of cannabis herb, it is still illegal on a federal level. Since the federal law regulates the banking system, banks hardly opted to do business with cannabis companies. With the passing of the Hemp Farm Bill 2018 and ongoing talks about the decriminalization of the herb, banks will be more accessible for cannabis e-commerce players.
While until recently most of the financial support that cannabis based businesses were getting had been through private investors like VCs or private equity firms, there has been a few players willing to take the chance and support cannabis based businesses by providing loans, working capital, investment support and transaction systems. However this is still not really mainstream and many companies struggle to get access to the financial services they need.
2. Easy payment systems:
The cannabis industry has been solely cash-based until now, given the lack of banking services. With banks allowing cannabis business owners to set up accounts and access their services, other payment systems can emerge. Many online retailers are already using credit cards, and some even offer completely cashless payment options to users. Cannabis businesses are catching up and are looking at every angle to make it easier for customers. Some cannabis retailers are accepting crypto based purchases while others are using peer to peer lending systems. In the near future, all will be able to accept any form of payment that a standard retail shop accepts today
3. Friction-free shopping:
In this digital arena, users are adept at navigating their way through cannabis e-commerce websites and making their purchases. But the real trouble begins during the checkout. The user has to go through a series of steps, including the ones to prove the legality of the transaction, like confirming age and identity through photo ID, which often leads to card abandonment. Many online businesses are trying to simplify the shopping experience by reducing the steps at checkout, optimize their stores for mobile users, and using established cannabis e-commerce platforms like Shopify.
4. Improved delivery solutions:
Until now, many states legalized cannabis but not the delivery. With the increasing popularity of cannabis e-commerce and its legalization, its delivery is becoming much more manageable. It will provide a boost to sales and further contribute to the growth of the cannabis industry. While we wait for the laws to catch up and things like interstate transportation of Cannabis to be legalized, this will continue to be challenging for cannabis businesses.
Final thoughts
The cannabis industry has been going through a significant shift both in terms of legality, technology and scope. It has led to various entrepreneurs venturing into the digital arena by starting an e-commerce platform for their cannabis business. Given the recent popularity of e-commerce for all retail, it is easy to envision the future of cannabis being predominantly online. While the hurdles are slowly lifted, cannabis business owners will continue to push the envelope to get their products in the hands of their consumers.