In the era of digitalization, everyone wants products at their doorstep. It is the reason behind the development of e-commerce. From food to brand clothes and mobile accessories, everything is available online. So, why should a market as huge as Cannabis should stay untouched.
In the last decade, there is a boost in Cannabis delivery sites like Black Rabbit, mainly after Uruguay legalized the use of Marijuana for recreational use. After that, 33 US countries allow it for medical use while 11 allow it for recreational use. Thus, the future of the cannabis industry looks bright in the US and most other parts of the world.
The combination of growing demand for Cannabis with people locked inside their house is probably the best time to make a delivery app for Cannabis. Here is your guide to creating one
Understand Your Market and Legal Status
The first step before thinking of opening a Cannabis delivery app is to understand your market and know every hook and cook of the legality of Cannabis in that market. Find out whether the market you are targeting allows the purchase and sale of Cannabis or not. Although, in most parts of the world, Cannabis is now a legal plant, there are restrictions. Also, at some places, they are legalized according to their use, medical or recreational.
So, understand that the market you are choosing allows which category. Then get the required permits and licenses from the government. Also, make sure that your market space has a demand for Cannabis.
Decide the Revenue Model and Business Model
Before creating an app, decide the business model you want to choose. There are three models to choose from. They are:
- Delivery-Centric Model
This model focuses only on the delivery of Cannabis. Here you will work as a mediator between the cannabis provider and the consumer. If you do not have contacts in the manufacturing of Cannabis, then it is best to go for this model. You work as a delivery partner to weed stores and dispensaries that deliver Cannabis to their consumers and charge an amount for each complete order.
- Single-Store Model
If you already hold a dispensary or Cannabis store, you can create a Cannabis delivery app to further fuel your business. You can reach customers beyond the location of your store. You receive an order directly, prepare it, and send it to the consumer’s place. You can either set up a delivery network of your own or hire a third party providing delivery services.
- Aggregator Model
In this model, you make an app for complete interaction between consumers and stores. It facilitates the purchase of Cannabis and delivery. In this app, you need to handle three sections, buyers, sellers, and drivers. The buyers will get a complete guide of the products available through your app. They will place an order accordingly. Then the drivers will pick the order from the dispensary and deliver it to the consumer.
You can select the model you are most comfortable with. There are also revenue models. They are:
- Delivery Commission and Fee
- Membership Plans
- Price Markup
You can choose the combination of business model and revenue model according to your needs.
Reach Out to Your Investors
You might face difficulty handling the cost of app development on your own. It isn’t easy to estimate the correct price as there is so much to add and subtract that affects the cost. But in broad terms, the cost of creating an on-demand Cannabis app is nearly $50K US to $150K US.
The cost largely depends on the features you provide in your application, your development team, the platforms you are choosing, and your market. To get a precise estimation, you can connect to your development team. Most of the time, the cost is too much. Thus, you should reach out to interested angel investors or parties ready to fund your start-up.
Develop Your Application
This process might take a good time. These are some things you should consider in this process:
- Before you go for professional help, make a rough sketch of your plan and things you expect from your app.
- Discuss each and everything clearly with the professional before initializing the process of building a prototype.
- Discuss the idea with your friends, people already in the field, and people you trust. Ask them for advice, reviews, and feedback. It will help you to build a great app.
- It is vital to come up with an idea of your own. There are various apps already existing. To stand in the competition, you should give the users something new. So, develop a creative flavor for your app.
- Try to show your presence on most online platforms for good reach. However, you should not sacrifice quality. Run multiple tests to make sure that users get a good experience.
- Reach to blogs, social media sites, and other platforms to keep consumers informed about what you are doing.
Once the app is on the platform, check for feedback, keep data and statistics, then make the required changes.
Manage the App
The professionals are there to develop the app. After it is launched, your main task includes coordinating the three hands, buyers, dispensary stores, and drivers. Your app should consist of features for all three sections. Some features are:
- For Buyers
- Registering/Logging in to the app
- Option to search the products
- A cart where they can collect their orders
- Feature to place and cancel the orders
- Payment options
- Tracking their orders
- For Dispensaries
- Logging in and registration
- Feature to provide their complete profile
- Opportunity to submit their product catalog
- Administrating the orders
- For Drivers
- Registration and logging in
- Submitting their details
- Tasks allocated and notifications
- Maps and Navigation
So, these are the features your app should provide to the three sections. You, as the head, need to coordinate and make sure that all three are working smoothly. So, these are the things you need to create a delivery app for Cannabis. Also, take feedback and bring updates to your app.
The WallStreet’s Cannabis Analyst suggests that the CBD market might reach the mark of $80 Billion by 2030. The $10 billion invested in the North American Cannabis market in 2018 will reach $16 Billion in 2019. These data are firmly in favor of someone looking to make a space in the cannabis market.