As many states in the US have started legalizing cannabis, it’s about time to start a delivery service to make it convenient for customers to access dispensaries.
Offering delivery is ideal for business startups with low capital or to increase profit since the marijuana industry is expected to grow.
If you want to know how to start a marijuana delivery service, read on and find out!
Table of Contents
10 Steps To Start Marijuana Delivery Business (The Right Way)
1. Read & Comply With Legal Laws About Marijuana Delivery
Over 34 states in the US legalized the cannabis delivery service business. Before you start, you should understand legal laws on cannabis delivery compliance.
You should also check the tax code and local laws of each state you plan to conduct a marijuana delivery business.
As per tax code 280E, state-legal cannabis businesses are prohibited from claiming the entire business expenses from taxes if not related to direct production costs.
2. Secure Cannabis Delivery Service License
Before starting a cannabis delivery business, process the necessary paperwork and apply for a business license.
You should also prepare the payment for licensing fees and other expenses you may need to settle throughout the process.
Furthermore, check cannabis delivery laws at the state or local government you will conduct business.
Since the process and laws differ per state, whether securing a license for recreational or medical marijuana delivery.
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3. Determine & Develop Your Delivery Strategy
Apart from all the legalities and paperwork, your strategy can make or break your cannabis business.
Thus, developing an efficient strategy is essential. For instance, determine how many delivery drivers you need and create a route management strategy to maximize your business potential.
Note that buying and selling cannabis products is limited to QR codes and cash payments per tax code 280E. So ensure to add it to the delivery process!
4. Set Boundaries On the Delivery Radius
On the other hand, there are limitations to consider for cannabis businesses, such as setting a delivery boundary because federal law still prohibits its usage.
Federal agencies also have the authority to prosecute workers of cannabis deliveries as per the Constitution supremacy clause.
Thus, you need to set boundaries on the delivery radius, as transferring marijuana to some states can lead to federal prosecution. Also, take note of federal laws to better understand the risk of business.
5. Choose The Right Cannabis Delivery Partners
Considering the cannabis delivery business is quite challenging and rife with risks, choosing the right partner is vital to success.
With that said, you should choose the best possible partners that meet the needs of your business.
In addition, good delivery partners help lessen manual work and maximize profits. You can also find partners to help you develop a cannabis delivery app as your business grows.
6. Configure Your Store Layout & Inventory
If you’re planning to add delivery to your business model, you may also consider modifying your in-store layout.
You can follow the bank model, where you designate different lines for pick-up customers and delivery orders.
By doing so, you’ll have a smooth operation, and performing inventory management will be much easier.
Additionally, you should note other configurations, such as staffing and automation, necessary to achieve accuracy and efficiency.
7. Select The Right Delivery Model
Before you start collecting orders, make sure to choose a delivery business model to match your operation, such as:
Hybrid Delivery
Featuring the combined methods of pizza and ice cream shops, the hybrid model is perfect for a cannabis business to cover the needs of a dispensary.
Pizza-Style Delivery
The pizza-style delivery features the same appearance and setup as a typical pizza shop.
Under this method, you operate in a central region and perform all the work from obtaining and packing to labeling and delivering cannabis products.
Ice-Cream Truck Delivery
The ice cream truck is another excellent alternative to pizza-style delivery. This method involves a driver carrying an inventory and performing multiple daily deliveries.
8. Secure A Delivery Car
Whether you want to set up an e-commerce or already have a dispensary storefront, securing a delivery vehicle based on your preferred business model helps maximize profit.
Thus, get a delivery car equipped for a cannabis delivery business.
Remember, company cars shouldn’t be branded since most customers don’t want others to know they’re purchasing cannabis.
Also, don’t forget to install security measures to ensure the safety of products while in transit.
9. Promote Your Delivery Business
Once you have settled everything, the second to the last step is to promote your cannabis delivery business.
However, some states have laws regarding advertising restrictions. So check them before performing the following advertising tips:
Set Up A Business Website
Although the competition in the cannabis industry isn’t as challenging as others, setting up a website is the fastest way to promote your business. In addition, you can find developers with in-depth knowledge of cannabis to develop a cannabis delivery service app for your business, easing the shopping cart flow.
Contact Local Dispensaries
If you’re not producing cannabis, contacting local dispensaries is the best way to promote your business. This way, your courier will be the go-to delivery service since dispensaries can only deliver locally under the law.
Advertise In Local Papers & Local Digital Ads
You can also advertise in local papers for cannabis and digital ads such as Facebook, Google Ads, and Instagram to reach more customers.
10. Get A Route Planning Software
To ensure a positive customer experience, get a route planning software like Route4Me.
Multi-Stop Route Planner App
With this route planner, you can get optimized routes in just 60 seconds and an accurate estimated delivery time.
Using our route planner will also benefit your business by getting the most-efficient routes to maximize cannabis deliveries per day and increase profit.
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3 Main Types Of Marijuana Delivery Services
1. Courier Companies For Local Marijuana Dispensaries
One of the most accessible cannabis delivery services is to serve as a courier company. For instance, if you want to get started but don’t have a warehouse or physical store, you can partner with local cannabis dispensaries as their courier.
Under this service, you can deliver cannabis without worrying about where to source the product or how to get customers.
You only need a partnership with dispensaries and a route planner for your drivers.
2. Dispensaries With In-House Delivery Service
For those who already have a storefront dispensary, offering a delivery increases your business potential.
You will also gain more customers with the convenient service you provide. However, your responsibilities will also increase since you need to hire and train drivers for your delivery business.
Furthermore, you must equip your drivers with a delivery and route planner app to ensure efficient business operation. Just take note of laws to prevent legal problems or prosecution.
3. Online-Only Marijuana Shops
Another good thing with cannabis delivery businesses is it doesn’t require a physical store to operate, as you can conduct business online through e-commerce.
This is one of the most recommended cannabis delivery services for low-cost business startups.
So even if you don’t have a place where customers can visit, you can buy and sell cannabis online by setting up a website or app.
Selling marijuana online also means less operational cost but the same or higher profit.
Frequently Asked Questions (FAQs) about Marijuana Delivery Services
Do all states allow marijuana delivery services?
How much capital do you need to start a marijuana delivery service?
In A Nutshell
The average cost of marijuana is around $319.04 in the U.S. It has a fruity flavor, the aroma of cheese and coffee, and smells of pistachio, mint, lavender, Tabasco, and jasmine.
In summary, starting a cannabis delivery business has many restrictions and challenges.
Thus, before you venture into the cannabis industry, conducting thorough research on legal laws you should comply with to avoid prosecution is ideal.
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