Cannabis retailers in Alberta are ecstatic about the provincial government's planned Bill 80: the Red Tape Reduction Implementation Act, which was recently announced.
If passed, the Act will phase out the provincially managed Albertacannabis.org e-commerce site and shift online cannabis sales and home delivery to regulated private sector retailers within 90 days of passage and proclamation. This follows Ontario and British Columbia's recent measures to allow private sector engagement in cannabis e-commerce and home delivery.
The advantages of providing delivery are self-evident: retailers who provide delivery acquire customers from new geographic areas, improve consumer convenience, and increase total revenue. Many of these benefits, however, may go unachieved if your delivery is not structured properly.
Here are our top five recommendations for launching a cannabis delivery service in Alberta.
- Choose a delivery fee and a minimum order value. You will have to pay your driver, as well as cover the costs of insurance and fuel, as well as other operational costs. As a result, make sure you're paying these costs by charging a fair delivery fee.
You should also make sure that your profit margin grows with each delivery. Even if you charge a delivery fee, it's inconvenient to send your driver across town to deliver a $5 order, therefore you need to consider setting a minimum delivery order fee. In various places, the standard minimum order value can range from $20 to $50.
Keep in mind that it's easier to lower rates later, so don't start too low. Otherwise, your consumers will begin to expect low delivery, making it difficult to raise these fees later.
- Create standard operating procedures after determining your delivery zones. Depending on where your store is located (city vs. rural), you'll need to figure out where you'll offer delivery, which means deciding how far your delivery drivers should travel. Is it reasonable to send a driver 30 minutes out for a $20 order (a 60-minute round trip)? Most likely not. But it may work if you only send a delivery person to that place once a week to deliver multiple orders at once. When it comes to delivery, be on time, set parameters, and let clients know when their items will arrive. Organize your delivery schedules during peak hours by scheduling drivers for when they are most needed. Because the delivery service will most likely coincide with high-traffic in-store purchasing hours, your employees must be prepared to handle the workload effectively.
- As a high-dollar purchasing incentive, you should consider providing free delivery. Offering free delivery once an order reaches a certain value can encourage customers to place larger orders and add more items to their carts. Offer free delivery on orders over $100, for example. This easy method can boost average order amounts by up to 30%.
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Using a delivery logistics/fleet management system is definitely something that you should consider. If you plan to run a high-volume delivery business, make sure your delivery system integrates with delivery logistics systems so you can better manage your drivers. Onfleet, Cannalogic, and Pineapple Express Delivery are a few logistics companies to consider.
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Customers should be aware of your delivery service. It won't matter if you have the best delivery system in the world if your clients are unaware that it exists. Customers that come into the store should be informed about the store's delivery service. Several strategies, such as including a printed brochure in the customer's shopping bag and publicizing your delivery service on your website and social media channels, can be used to achieve enough promotion.
Pro Tip: Add a QR code to your bags/brochures that customers receive with their order
How We Can Help
A well set up cannabis delivery service will be critical to your business's success and will boost your earnings. If you want to start incorporating a delivery service into your cannabis retail business but aren't sure where to begin, Buddi can help.
We recognize that in order for your customers to have the best shopping experience possible, they need to be able to simply navigate your website, find the products that they want, make their order, and either pay online or phone the store to submit their payment.
When it comes to selecting the best cannabis technology partners, this is critical.
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 info@buddi.io, or call 604-800-3783, or submit a demo request here: https://buddi.io/demo/