From Click to Cart: The Cost of Convenience
Getting a store is great, but how do you let people know what products you have? Advertising online is tricky, the popular sites like Instagram and Facebook are just chomping at the bit to lock your account for anything THC related. So enter E-comm platforms like Weedmaps, I Heart Jane, and Dutchie to help get your physical storefront online. Yet, at every turn, the roadmap is dotted with customization fees, integration choices, and a lack of clear compliance in an industry that desperately needs it. It almost makes you wonder: Are online menus even worth it?
Navigating the cannabis e-commerce landscape is a journey through a fragmented industry, full of major platforms and empty promises. Whether you're a dispensary owner looking at Dutchie’s all-in-one compliance and analytics toolkit (starting at around $250 per location) or exploring iHeartJane’s AI-driven recommendations (around $300 per location), there’s a lot to consider. Platforms like Weedmaps provide exposure to massive audiences, while WooCommerce offers an open-source solution that could run on a shoestring budget—though setup and add-ons can drive up the cost.
State of the Union
Cassidy LoParco at the Michael G. DeGroote Centre for Medicinal Research, dives into online cannabis retail practices across five U.S. states, capturing the scattered—and at times shocking—lack of consistency in regulation, responsibility, and protection. In a world where cannabis is steadily becoming mainstream, you'd expect more cohesion, but LoParco shows us a chaotic market rife with accessibility loopholes and wide-open doors.
The crux of LoParco’s findings? A vast regulatory gap in online sales. Basics like age verification and health warnings, which should be mandatory, are often missing or inconsistent. According to her data, only 76.6% of sites enforce age verification upfront, leaving a troubling margin open to anyone who clicks through. Health warnings dropped from 39% in 2022 to just 30% in 2023, a dip that seems all the more reckless in places like Las Vegas, where regulations are almost nonexistent.
And then there’s the marketing—the kind that goes straight for vulnerable groups, a tactic that’s hard to ignore. In just a year, targeting toward racial minorities jumped from 5% to 21%, not a random uptick but a calculated move. And the promotions? Still rampant in cities like Denver and Vegas, where price cuts and loyalty incentives are as common as coffee shops on every corner.
New Mexico
Zoom into New Mexico’s cannabis scene, and we see this same clash play out. The divide between big chains and local brick-and-mortar shops is undeniable. The larger chains invest much more into their platforms; adding as much detail as possible. While nearly half of these smaller dispensaries in New Mexico skip e-commerce entirely, often due to tech barriers or cost. Data providers like Pistil and Headset only cover major E-commerce sites, which only contain 30-40% of dispensaries (we have closer to 70% ahem). Those dispensaries that opt out of a major E-comm site, might use more DYI options such as hosting the menus internally.
For Example: Smoke Haven Dispensary, located on Juan Tabo directly across from one the states highest earning stores Dark matter, has invested little to no money in online marketing other than social media, and in-house menus, And yet has been able to remain competitive. The store has tried in the past; after a 2 month trial Weedmaps, little to no impact was made. Isaac, the store owner says “…no secrets, just a lot of hustle and being i grew up in the city…”.
Compliance Implications?
That being said; online menus might not be for everyone. Should you choose to partake, your subject to playing by the rules - how long before CCD starts issuing penalties for not having a landing page? LoParco’s prescription? Stronger, standardized rules across the board. We’re talking airtight age verification, mandatory health warnings, and a hard look at discount practices that lure in high-risk buyers. Her call for oversight rings true, not just as a solution to protect youth and at-risk groups but also business owners from citations.
In the end, this industry is at a crossroads. Either it establishes some guardrails, or it risks becoming just another unregulated frontier—ripe for exploitation and driven by profit over public safety. The digital doors might be open for business, but without reform, they’re open a little too wide.
