How to Start a Dispensary Delivery Service: 4 Tips

On December 10, 2022 — By Dispensemore.com

The cannabis industry is quickly evolving, and dispensaries must adapt to newfound eCommerce options like delivery services to keep up. During the worst of the COVID pandemic, delivery services of all types popped up and thrived, including marijuana delivery.

Incorporating dispensary delivery service requires upfront work to implement, but it can be a game-changer, especially for those limited by a small storefront or less-than-ideal location.

In this article, we will look at how to start a marijuana delivery service, including four tips and best practices for implementing or expanding the delivery capabilities at your dispensary.

Tip 1) Know the Laws Regarding Cannabis Delivery Services

It’s crucial to be fully aware of city and state laws when starting a cannabis delivery service in your area. Marijuana deliveries are not as simple and straightforward as pizza deliveries. Every state that has legalized marijuana has its own set of laws you have to follow, or you will face fines and risk having your marijuana business license suspended. For example, some states only allow medical marijuana delivery services, excluding recreational cannabis users. So, be sure to do thorough research and understand what you are dealing with legally. If you have any doubts, check with a local attorney for legal advice.

Tip 2) Develop a Marijuana Delivery Strategy

Rushing into a major decision like adding cannabis delivery service to your dispensary can be a recipe for disaster. Deciding on a marijuana delivery strategy requires thought and planning.

Some basic steps to help you get started with your strategy include:

• Look at the online and in-store sales numbers for your dispensary to see if the numbers justify adding cannabis delivery service.
• Define your customer base and determine if they are likely to make use of delivery as part of your dispensary services. Home-bound customers, along with younger Gen Z consumers, are most likely to make use of marijuana delivery.
• Create a cannabis delivery business plan. Weigh the associated costs of adding delivery against the possible revenue stream.
• Evaluate ways adding delivery will affect your current business operations. That can include adding employees, purchasing more inventory and reconfiguring the physical layout of your business.

Tip 3) Choose the Right Dispensary Delivery Service Model

There are different delivery model options available for your dispensary to choose from, although some state laws do not allow marijuana delivery drivers to carry more than one customer’s product in their car at a time. So, as mentioned above, be sure to research your local laws.

If your state allows you the freedom to choose the dispensary delivery service model that works best for you, keep in mind you will want to choose the one that maximizes the number of deliveries you can make in a given time period.

The 3 most common marijuana delivery models are known as ice cream truck, pizza shop and hybrid.

Ice Cream Truck Delivery Model

Under the ice cream truck cannabis delivery service model, a driver carries product in their vehicle and can make multiple deliveries at a time. Also known as “dynamic delivery” or “warehouse on wheels,” this model allows the drivers to process orders in the vehicle and oversee their inventory.

Pizza Shop Delivery Model

Some states require you to follow this marijuana delivery model, where drivers only carry one customer’s order at a time. Much like a typical pizza shop, you have a brick-and-mortar location where you receive the product, take orders and then send the merchandise out with a driver. The driver then returns and repeats the process as needed for other customers.

Hybrid Delivery Model

The hybrid model allows your dispensary to pick and choose the best aspects of ice cream truck and pizza shop models to find a delivery model that works for your dispensary within the confines of local laws.