COVID-19’s Impact on Cannabis Delivery

The COVID-19 pandemic has continued to leave Canadian cannabis consumers sheltered at home. While some consumers continue to choose retail stores as their go-to source, many have switched to ordering cannabis online. According to recent reports from Statistics Canada, cannabis sales surged by over 25% during the early stages of COVID-19 lockdowns, driven by increased online purchasing and shifting consumer behaviors.

Ordering cannabis directly to your home is a safer practice during COVID-19, and consumers are enjoying the benefits of eCommerce, such as no waiting in line, no commute to the store, and more product selections available. 

At the same time, reopening strategies are being realized province to province, and new sales trends have emerged that continue to reshape cannabis purchasing behaviours. In March, Canadian license holders quickly pivoted their strategies to prioritize operational efficiencies and explore the various new sales channels required to service their customer communities. 

The pandemic has also changed the amount of money consumers are spending on cannabis, as the industry experienced a sales boom near the start of lockdowns. Now that the stockpile effect is wearing off, sales are balancing out, and we’re returning to normalcy, or a new version of it. During the height of COVID-19, many consumers shifted spending toward bulk purchasing and experimenting with edibles, concentrates, and higher-priced premium products, as confirmed by the Ontario Cannabis Store’s 2020 Insights Report.

The Canadian cannabis industry adapted quickly and new technologies were employed to facilitate digital sales channels, enable direct-to-consumer delivery, and curbside pickup—a wave of change that, like social distancing, may just remain a new long-term normal.

While there is a lot of uncertainty today, one thing can be noted: consumer sentiments may have shifted permanently. License holders and retailers who don’t focus on building an eCommerce platform with the ability to reconcile inventory quickly may fall short on revenue if they’re forced to rely on retail store traffic. 

The importance of having a seed-to-sale software solution in place with built-in, easy to configure, user-friendly eCommerce capabilities has never been greater. Today,  new data reports, including one issued by the Ontario Cannabis Store, are proving that online sales are soaring, with medical cannabis and edibles sales volumes still on the rise. 

The Future of Cannabis Retail and eCommerce in Canada

To meet the increased demand of eCommerce sales, licence holders may look to acquire a medical sales licence, or focus more on growing their current medical sales program. With the continued evolution of consumer habits shaped by COVID-19, investing in digital infrastructure and regulatory compliance remains essential for long-term growth in the competitive cannabis marketplace.

But how do you do that if your current seed-to-sale software doesn’t facilitate medical sales tracking, an online store, shipping, payments, and everything else that comes with eCommerce, combined with the complexities of Health Canada regulations?

Read our article on the three most common cannabis eCommerce platforms and find the best fit for your business.