Breaking Down the Numbers: Online Menus vs. In-Store Sales Performance
Getting a licensed store up and running is a significant milestone, but the real challenge begins when it comes to letting people know what products are on your shelves. Advertising products online is a minefield—platforms like Instagram and Facebook are quick to ban accounts for anything remotely canna-related, leaving stores turning to specialized e-commerce platforms like Weedmaps, I Heart Jane, and Dutchie to establish an online storefront, but are they worth it?
The Current State of Online Menus in New Mexico
As of November 2024, New Mexico's industry reported $47.6 million in sales across 658 retail stores. A closer look at these locations reveals a stark divide in performance between those that utilize online menus and those that do not. Among the 658 stores, 425 had an online menu, while 233 operated without one. The sales disparity was striking: stores with menus generated an average of $92,939, compared to just $35,019 for stores without. This translated to $39.5 million in total revenue from menu-equipped stores, making up 83% of statewide sales.
The Role of E-Commerce Platforms
Nearly half of New Mexico’s retailers either avoid major e-commerce platforms or operate without an online menu altogether. 233 stores—over a third of New Mexico’s market—operate without any form of online menu. This lack of adoption is striking, but given the rural nature of the landscape, not alarming. Costs, integration challenges, compliance requirements, and operational demands may deter many retailers, particularly smaller operators.
Market Summary
Dutchie: 148 stores (22%)
Leafly: 35 stores (5%)
I Heart Jane: 21 stores (3%)
Other formats (PDFs or images): 98 stores (15%)
Weedmaps: *123 stores (19%)
However, Weedmaps’ figures are somewhat misleading. Some of the listed stores do not maintain active menus. This practice inflates the platform's presence at face value, creating an exaggerated perception of activity. Weedmaps has faced criticism for such tactics, especially after being fined for misleading stakeholders by overstating its user base. These questionable practices raise concerns about the reliability of its data and its impact on market decisions.
Is an Online Menu Worth It?
For most retailers, the numbers make a compelling case for online menus. Stores that invest in e-commerce platforms see higher sales and capture the lion’s share of the market. However, maintaining an online menu is an ongoing responsibility. Retailers must ensure their websites are compliant with regulations, such as including a 21+ landing page—something many overlook.
Beyond compliance, they need to maintain consistent naming conventions and product descriptions to keep their websites organized and user-friendly. Unfortunately, this critical task is often neglected, something New Mexicans are not the only ones dealing with.
Consumer Science
Cassidy LoParco at the Michael G. DeGroote Centre for Medicinal Research, dives into online 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 product are 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.
Same Song, Different Beat
This product has long been rooted in a rebellious, counter-culture ethos—an identity that doesn’t always mesh with the meticulous demands of compliance. Some operators are navigating this balancing act with grace, striving to blend authenticity with adherence to regulations. Others outright refuse to engage with the e-commerce landscape, relying instead on their physical stores and local reputations to draw in customers.
One common thread among stores that thrive without major e-commerce platforms is the people. Whether it’s the owner or a budtender, it’s often the person behind the counter that keeps customers coming back. In New Mexico, this sense of connection runs deep. New Mexicans may not always form attachments easily, but when they do, they’re fiercely loyal. It’s this personal touch—far more than any menu or platform—that builds lasting relationships and keeps these businesses alive.
Catching a Vibe
Remarkably, both approaches seem to have their place. Larger, established brands cater comfortably to newer consumers who value convenience and polish. Meanwhile, those shaped by the traditional market—the parking lot meetups, discreet house visits, or the classic “it’s in the glove box, just leave the cash” deals—naturally gravitate toward stores that preserve that underground vibe. This dynamic market holds space for everyone, whether they’re drawn to compliance-driven professionalism or something a bit rougher around the edges.
