The turn of the twenty-first century has been the stepping stone for technological advancements. Along with this, the rise of e-commerce has been significantly immense. Right when eBay and Amazon launched their e-commerce platforms, there was a massive stir amid the market. However, twenty years into this century, a lot has changed when it comes to the e-commerce sector. Several forms and types of businesses have come up with their platforms, allowing viewers and visitors to shop and engage.
Today, plenty of consumers prefer buying products online as they only have to browse through the palm of their hands. Furthermore, transitioning to a digital platform is not as straightforward as it might seem for specific industries. For instance, the cannabis industry faces endless legal barriers, limiting its expansion into a digital marketplace. With giant social media platforms like Google, Facebook, and Instagram disallowing paid cannabis ad campaigns, the regulations are more or less stringent. With recent bills and laws, it has become much more accessible for businesses willing to convert their dispensaries into e-commerce platforms.
After the introduction of the Farm Bill in 2018, hemp-derived CBD products’ production was legalized. Initially, several companies noted that they would not partake in such an industry because of legalities. Nonetheless, after Bill’s introduction, many corporations began to advertise and commercialize cannabis products like Cannabis Budder, CBD products, and cannabis seeds. As a result, with the cannabis industry continuing to expand at a significant rate, experts expect technology to play a critical role in developing the cannabis industry.
Even though brick-and-mortar dispensaries will be as famous as they were in legal areas, e-commerce platforms are projected to increase sales numbers. According to Ameri Research, the worldwide marijuana market was estimated to value around USD 14.3 Billion back in 2016. However, By 2024, medicinal marijuana’s global sales can reach a staggering figure of USD 63.5 Billion. Keep reading to know more about how e-commerce is changing the future of the cannabis industry.
Ease of Access
Traditional shopping methods have suffered in recent years, with more e-commerce platforms laying down several avenues for consumers to hop on. However, for any business to thrive, a base of loyal customers is a necessity. Nowadays, people love to order things from the comfort of their hands. Since social media platforms and Google’s likes have asserted a ban on paid advertisements for cannabis products, the e-commerce sector has made it a lot easier for cannabis companies to sell their products. All a company needs to do is build a reliable supply chain for its products and market them to a suitable audience through an e-commerce platform.
E-commerce allows increased interaction with customers.
People usually think that online interactions with customers tend to suffer. However, this is not true. There are several types and kinds of modern-day tools that can significantly help cannabis businesses with customer communication and satisfaction. For instance, let’s take social media platforms that allow you to post and educate on specific topics. Besides advertising limitations, you can post regular posts with product-specific content and run a normal campaign simultaneously. Through the help of such platforms, you have the liberty to drive traffic from social media platforms to e-commerce stores.
So, if you successfully lure customers to the website, their conversion rate might experience a considerable rise. Moreover, you can encourage your customer base by providing them with a feedback form where they can pour their views and help you grow at the same time. The point is to be consistent throughout driving the traffic, converting visitors into loyal customers, and retrieving feedback forms.
E-commerce increases your businesses’ scalability.
Last but not least, brick and mortar setups can limit cannabis stores and dispensaries. If your cannabis business wants to grow out of the local demographics, getting an e-commerce platform is vital and necessary. So, suppose you plan on setting up a cannabis store on an e-commerce platform and tie-up with local delivery vendors. In that case, you are bound to experience an immediate multiplier effect. Following such a process can soon allow you to serve globally.
If you are a manufacturer or a producer of cannabis seeds and products, you can list them on your e-commerce website and sell them to various stores in bulk. Through such ways, you are not only stepping out from your local area but collaborating with several other businesses around you that you had no clue of.
The Bottom Line
Even though the current year has posed several challenges for online businesses to thrive, you can still plan on expanding your cannabis business’s reach by developing its online platform. With more people getting skeptical each day of moving out amid social distancing, it might be an ideal opportunity for you to build your business on an e-commerce platform.