Top 5 barriers of marijuana eCommerce and possible solutions

Ongoing tension in the United States between federal and state law has trapped banks between their desire to serve an industry experiencing explosive growth and their fear of federal enforcement action. While marijuana is still illegal under federal law, eleven states and Washington D.C. have legalized it recreationally, and thirty-three states have legalized cannabis for medical purposes.

The banking system is regulated by federal law. Hence, banks risk charges of aiding and abetting a federal crime/money laundering by choosing to do business with a marijuana-related venture.

This issue has forced an entire industry to rely largely on physical cash in an era when credit cards and digital payment platforms have become the new standard.

Anyone who makes a purchase online generally does so using a credit card, and so too have they come to expect rapid delivery of the item(s) purchased - easy payment and delivery are bedrock elements of the entire eCommerce system. Many jurisdictions that have legalized the sale of marijuana (medical or recreational) simply have not legalized delivery.

This seems to be a barrier that will fall, on a state-by-state basis, like proverbial dominoes. At 3.2T, the 5th largest economy globally, California, has fully legalized the delivery of marijuana products, and these services provide substantial revenues to an already booming industry. As it has led the way on marijuana for decades, it seems reasonable that California’s successful delivery model will be a catalyst for other states, thus spurring the development of the most important element for further eCommerce growth.

These issues can occur in many places within an omnichannel eCommerce experience, from social media engagement to answering important questions a customer might have while they’re loading up a shopping cart on your website. Any problems, if not addressed correctly, can send a potential customer away, never to return.

Before any sale, it is necessary to make sure that your communication is effective, consistent, and builds confidence in the customer's mind. If someone asks a question on an Instagram post, they, and everyone else, will see if it goes unanswered.

Website errors, as simple as incorrect/missing photographs, misidentified strains, or grammatical errors, can diminish your reputation with an experienced (or novice) marijuana consumer.