We are living in a world where people prefer comfort before anything else. On-demand services are a massive hit among modern customers. This popular trend is knocking on the door of marijuana. Recently the US government has made the usage of marijuana legal in 33 states. Marijuana is being used for medical and recreational purposes. Read until the end of this article to learn more about the monetization strategies in the on-demand cannabis delivery business.
Business models in the on-demand marijuana delivery app business:
There are two primary business models in this niche that you can implement. Each of them has different monetization strategies.
Marijuana delivery app for a single dispensary:
This can be an ideal business model for the ones who are already growing marijuana at their place. They have to make sure that they have enough stock to sell. You can build an app to deliver products directly from your warehouse. These apps are loaded with useful features to track your orders and manage your stock from the admin panel. When it comes to the monetization strategy of this business model, you can charge delivery fees from your customers apart from the product’s cost. As your business grows in the market, you can run paid ads for other brands in your application. Advertisements can be an effective way to increase the overall revenue of your business.
Marijuana delivery marketplace:
This can be an ideal business model for those who don’t cultivate marijuana but still wanted to get into the on-demand cannabis delivery business. There are a lot of similar applications on the market, such as Eaze, Weedmaps, Leafly, etc., that are based on this business model. These apps let users locate the nearest dispensary to order marijuana. Then, customers will be asked to enter the delivery location and will be delivered in 24 hours. Dispensaries that list their products via merchant accounts can make use of it. The customers can find the nearest dispensary via the in-built GPS on their smartphone.
The users can choose to pay directly from the app and get the package to their location. Delivery personnel will regularly get notifications about the approved and ongoing orders. They can view the orders in the app to serve customers efficiently. The Admin panel is loaded with features to manage the users efficiently and monitor their orders. They will be available anytime to assist the users with any queries on the orders placed and continuously analyze their behavior with various strategies.
You can charge a commission fee from the provider for every order made via the application. You can also provide paid promotions for the marijuana providers to improve their online presence and to increase the number of leads generated. Advertisements can be an effective way to earn. You can run ads for other businesses in your application.
Things to know before starting your on-demand marijuana delivery app:
Research more about market trends and types of cannabis:
It is very important that every entrepreneur must know about the business before they get into it. It will give a basic idea about people’s needs and the current market scenario. You cannot get everything directly from Google. To get more in-depth knowledge about the sectors, you need to do some fieldwork and conduct surveys with the people. Learn more about the marijuana strains, tinctures, concentrates, topicals, or edible types in the market. This can be helpful for you to get an overview of its medical uses.
Connect with independent licensed dealers:
This is one of the crucial steps as it plays a significant role in determining your application’s success. The integration of modern features like geolocation helps users to locate the nearest dispensary. To avoid any fraudulent activities, make sure that you verify the credibility of the doctor’s prescription. You can reach out to more audiences with this application and grow massively as a brand in the digital market. Experts have predicted that the marijuana market will grow at a rate of 21% in the next year.
Latest news and legalization updates:
You should send timely updates to your customers about promotions, discounts, and regulated laws via push notifications. You can also share general news with your customers regarding medical marijuana, as they might find it interesting to read.
The current scenario in the market:
Despite all the opposition and challenges, the on-demand marijuana delivery app services are running smoothly. Although it is said that 90% of the dispensaries and wholesale cultivators are not able to see a high profit in the business, experts have predicted that the market scenarios will change sooner. As more and more applications enter the market, people will get better value to their product, and the sales will increase. These mobile apps will help entrepreneurs to establish an online presence for their brand and come loaded with features to manage the logistics easily and organize the stock.
If you have an idea to develop your on-demand cannabis delivery app, discuss them with a marijuana app development company. The sun is still shining in the market, and you can make the most of it quickly. Your development team will give a clear idea about the market scenario, and you can choose your business model according to your business needs. Never make any compromises on the development side to offer the best experience for your customers.