6 Challenges the Weed Delivery Business Face

Weed delivery had its ups and downs in the past. Online and brick and mortar weed stores continuously work on improving their delivery practices and delight their customers. However, even the best dealerships, including Black Rabbit Weed Dealers, face some challenges that they are yet to resolve. Even though various technologies made the delivery streamlined, there are still some concerns.

But what are these challenges, and what troubles the weed delivery businesses the most? Keep up reading if you want to find answers to these questions and more.

The legal issues

You probably know that governments have legalized cannabis throughout most of the western world. However, there are many provinces and local regulations to comb through. Every weed delivery business has to abide by the law. There is one catch here that you can’t see unless you are yourself involved in the weed delivery business.

In the eyes of the provincial and federal laws, weed does not have the same status. In some provinces, only government weed dispensaries can deliver weed; in others, only storefront businesses can engage in such activity. Overcoming the legal barrier can sometimes be very hard, causing weed delivery businesses to focus only on a small geographical region with no opportunities to grow and expand.

Obtaining the license is not the same for all businesses

The next challenge comes as a direct consequence of the previous one. It’s tough for weed delivery businesses to stay compliant. Obtaining a retail cannabis license is straightforward when you know the law. What makes it hard is that federal and provincial laws are not the same.

Every province in Canada has its oversight agency. Weed delivery businesses have to make sure they are both compliant with federal and provincial laws to prevent severe penalties. The rules are also subject to change, and staying informed is a must. For some business owners, this is too much of a hustle leaving cannabis lovers who are aware of the benefits of cannabis out of additional options.

There is another problem with licensing: you have to get one before you can officially start doing business. You will have to apply for both municipal and provincial licensing.

Some delays were inevitable, but it’s still a huge challenge for entrepreneurs who are eager to kickstart their business. However, the situation is better today than in 2018, when Canada legalized cannabis for recreational use.

The lack of delivery service providers

Not everyone can deliver weed. In Canada, for instance, it is clearly defined who can make weed deliveries to customers. However, these regulations vary from province to province. For example, in Ontario and Toronto, a third party can not handle weed delivery services.

Only direct employees of a weed store can make deliveries. So using something like Uber, for instance, would be illegal. On top of that, employees who deliver weed in Ontario need to hold CanSell certification.

Many weed dispensaries rely on Canada Post

In the provinces where it is allowed for a third party to make deliveries, the competition is not harsh. Weed delivery businesses don’t have many options. To deliver weed, though, one must obtain various licenses and adhere to strict laws and regulations.

In most provinces, only Canada Post is the viable option for weed delivery. Why is this a challenge? Because it restricts weed delivery businesses from offering personalized customer experience. Dispensaries are also unable to guarantee the delivery times as they have no control of the delivery process.

Marketing made hard

Marketing is essential for the success of the weed delivery business model. There are plenty of opportunities to advertise products today, including social media marketing and paid ads on search engines. Weed delivery businesses can do it, though. At least not to the extent that companies from other industries are doing it.

Health Canada has stringent regulations regarding cannabis marketing, and all weed delivery businesses have to stay compliant with the instructions.

Lack of consistency in barcode labels

Barcode labels are not uniform across different cannabis products. They range from the regular barcodes called UPC to multiple barcodes called GS1 Databar. In some instances, a product may even come with several barcodes on it. Not to mention the barcodes that are not always in high-resolution.

The inconsistency and low-quality barcodes create two problems. First, they are often very hard to scan. And, secondly, the employees usually have discrepancies in the inventory. As a result, it can delay shipments, result in shipment errors, and ultimately affect customer experience.

It has been three years since Canada legalized cannabis for recreational use. The market and industry are quite young, and it’s logical to expect to see some problems. Hopefully, the situation will resolve in the coming years so that weed delivery businesses can focus on and improve their core business processes.

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