Cannabis Delivery Business Model

The business model for a cannabis delivery service varies. While some companies provide actual delivery services using their own delivery agents or licensed couriers, others offer online technology platforms that cannabis consumers use to order; and orders are transmitted to retailers who make the actual delivery. Some states allow delivery as long as the driver is affiliated with a licensed cannabis dispensary. This dispensary does not have to be a storefront, but can be an online store that deals only with delivery. There are also independent couriers who only deliver orders that are accepted and processed by the dispensary. You can check which cannabis delivery option is available in your state at the following links:

Cannabis Delivery Business by State

Cannabis Courier Business by State

Cannabis Non-Storefront Business by State

Cannabis Delivery Business Pros and Cons

Pros:

Advantages of a cannabis delivery business include relatively low start-up costs, mobility, and growth in the delivery sector. Starting a cannabis delivery business is a great alternative to the traditional route of opening a dispensary if your startup capital is less than $100,000, but you intend to make a 20% operating profit. Changing the serviced territory due to unfavorable conditions is easier than the storefront option. This cannabis business also gives you much more opportunity to provide one-on-one service to your clients.

How Much Does it Cost to Start a Cannabis Delivery Business?

Cons:

The two main concerns of the cannabis delivery business include safety and compliance. Cannabis delivery drivers are especially vulnerable due to the product they sell and the monetary nature of the business. States adopt regulations that govern every stage of delivery from preparation for shipment to delivery to the buyer. It’s not easy to rely on paper for this, and delivery companies may need specialized cannabis delivery software to comply with regulations.

Main Steps to Start a Cannabis Delivery Business

1. Understand regulatory and legal requirements. Choose your business model.

2. Cannabis Delivery Service Business financial model will show you how you drive the future in all major areas: investments, sales, expense items and financing goals. Cannabis Delivery business plan is a tool for understanding how your business is put together. You can use it to monitor progress, hold yourself accountable, it’s a sales and recruiting tool for attracting your future investors and expand your business and of course it will help to apply for a cannabis delivery license.

3. Licensing

In the most states now a cannabis delivery service is legal as a part of dispensing (B2C) or between licensed premises by a licensee or licensee representative. For example, a cannabis retailer may deliver a cannabis item to a residence in Oregon, however the retailer must receive written approval from the Commission prior to making any deliveries and may not carry or transport at any one time more than a total of $3000 in retail value worth of marijuana items designated for retail delivery. You need to learn cannabis delivery approval process and requirements for your state, city and county.

4. Cannabis Delivery Software

Cannabis delivery software typically works for both scheduled and on-demand delivery and helps cannabis delivery companies manage their inventory, track deliveries in real time, and ensure compliance with regulations. For customers, it offers a convenient and secure delivery service where they can place orders for their preferred cannabis and related products online, view real-time status updates and receive notifications when their order is on the way. For drivers, it allows to process transactions, communicate with dispatchers, have full access to delivery order details and instructions, and comply with delivery regulations, including manifest creation and reporting of all required delivery ledger endpoints to Metrc in real time. For businesses, it helps easily manage drivers, optimize routes for faster delivery, identify popular cannabis products by area, track inventory levels, and get real-time data and analytics.

5. Stock

Starting a cannabis delivery service means you don’t have to lease or buy an expensive store to keep your stock in, but you’ll still need a place that’s big enough, safe enough, and legal enough, to keep everything. Keeping your stock safe while its in storage isn’t the only time you’re going to have to consider security.

Be sure to have enough product to fill all anticipated orders. Research the current demand in the area you plan to service. Knowing this information will help you estimate how much cannabis products you need.

Learn the rules and regulations regarding the amount of product you can store, as well as the amount you are allowed to deliver at one time.

6. Vehicles

You’re going to need a sturdy, reliable and secure vehicle, one that fully complies with any state laws regarding the use of a vehicle for business purposes and with the vehicle registration laws in general:

(A) Capable of securing (locking) the cannabis items during transportation;

(B) Equipped with an alarm system; and

(C) Capable of being temperature controlled if perishable cannabis items are being transported.

Keep in mind that some patients who are physically capable of getting to a dispensary prefer to use a delivery service because of the extra level of discretion it ensures.

7. Promotion

Because cannabis is illegal under federal law, state governments and online advertising platforms are placing strict rules on how companies can market their products. Google, Facebook and Twitter all have advertising policies that restrict the promotion of the sale of cannabis. Google’s policy prohibits ads that promote “substances that alter mental state for the purpose of recreation.” Facebook restricts any “illegal, prescription, or recreational drugs.” And Twitter bans “illegal drugs” as well as substances that cause “legal highs.” Instagram and Facebook have decided to go a step further by removing pages of cannabis related businesses.

In spite of that you are still able to promote your service directly through special platforms, including:

  • weedmaps.com
  • leafly.com
  • stickyguide.com
  • cannasaver.com
  • cannabiscouponcodes.com
  • weedealio.com

You should also develop the website and brand your appearance, including mission statement, logo, colors, brochures etc.

Main steps in short: 1. Understand regulatory and legal requirements. Choose your business model. 2. Business Plan. 3. Licensing. 4. Cannabis Delivery Software. 5. Stock. 6. Vehicle. 7. Promotion.

'70% ready to go' business plan templates

Our cannabis delivery financial models and cannabis delivery business plan templates will help you estimate how much it costs to start your own cannabis delivery business, to build all revenue and cost line-items monthly over a flexible seven year period, and then sums the monthly results into quarters and years for an easy view into the various time periods. We also offer investor pitch deck templates.

Cannabis Delivery Business FAQs

What is a cannabis delivery business?

There are basically three business models: a storefront dispensary with its own delivery service, an online store with delivery only and no storefront, and an independent courier that delivers only on behalf of a licensed dispensary and cannot stock cannabis products. Check your local regulations to determine which type is legal in your area.

How much does it cost to start a cannabis delivery business?

This depends on your cannabis delivery business model and can range from $100,000 for a courier to $1,000,000 for a dispensary with delivery service.

Should you have any questions, please do not hesitate to contact us


Cannabis Delivery Business Plan Sample

cannabis delivery business plan


Best Selling Templates

The templates we offer for cannabis delivery businesses include:

Cannabis Storefront Retailer with Delivery Business Plan Template

Cannabis Non-Storefront Retailer / Online Business Plan Template

Cannabis Courier Business Plan Template

and more


Hemp CBD Products Delivery Business Plan Templates are available at hempcbdbusinessplans.com.