As of July 15, 2021, Cannabis retailers across BC will be able to offer their customers home delivery. This is exciting, of course, but with the announcement coming with only four weeks' notice, many retailers are now in a rush to find a delivery system and figure out their delivery operations.
The value of offering delivery is clear; retailers who offer delivery reach customers in new geographical areas, increase convenience for customers and bolster overall revenue. However, if not done correctly, many of these benefits can go unachieved, or at worst, delivery can become a money-loser for your business. At Buddi, we've been helping retailers in provinces such as Ontario, Saskatchewan, and Manitoba to offer delivery services for well over a year, and we've seen what works and what doesn't.
Here are our TOP 5 TIPS for successfully implementing a cannabis delivery service at your store.
1. Decide on your delivery fee + minimum order amount
You will need to pay your driver, cover gas and insurance, amongst other operational expenses, when offering delivery - make sure you're covering these expenses by charging a reasonable delivery fee.
You also need to ensure that with each delivery, you are increasing your profit margin. Even with a delivery fee, it makes little sense to send your driver across town to deliver a $5 order, so make sure to decide on your minimum delivery order amount. Standard minimum order amounts can range from $20 to upwards of $50 in some areas.
Keep in mind that it's easier to drop prices later, so ensure you're not starting too low, or your customers will come to expect cheap delivery, making it hard to adjust fees upwards at a later date.
2. Decide where you will be offering delivery to
Depending on where your store is located (city vs. rural) it will be essential to determine where you will offer delivery, which means deciding how far away you want to send your delivery drivers. Does it make sense to send a driver 30 minutes (60-minute round-trip) for a $20 order? Probably not. If you only send a delivery driver to that location once a week for several orders at once, though, it can work.
3. Offer free delivery as a large basket incentive
You can incentivize customers to order larger baskets by offering free delivery once the order hits a specific value. For example, free delivery for orders over $100.00. This simple trick can increase average order amounts upwards of 30%.
4. Consider a delivery logistics/fleet management system
Ensure your delivery system offers integration with delivery logistics systems, which allows you to manage your drivers more efficiently. Looking for a logistics system? Consider http://onfleet.com/
5. Promote your delivery service to your customers
Having the best delivery system in the world won't do anything if customers don't know it's available. Stores need to actively promote delivery to customers who come in-store, such as by adding a paper pamphlet into the customer's shopping bag (PRO TIP: Add a QR code to your bags/brochures that customers receive with their order). You should also promote your delivery service on your website and social media.
LOOKING TO GET STARTED WITH DELIVERY?
Buddi provides online ordering and delivery services to hundreds of Canadian Cannabis retailers, and we'd love to work with you too - FOR FREE!
Email us at email@example.com, or call 604-800-3783, or submit a demo request here: https://buddi.io/demo/