It’s no surprise that marijuana is bigger than ever. With the increase in states and countries legalizing recreational marijuana, there is more product to choose from including different edibles, varieties of flower, vape oils, CBD, cannabis oils and much more. The more products out there, the more people can experiment and find the right one for them. For example, some people don’t want to smoke so they are moving on to vaping. Others have found relief in CBD as some cannot handle the high THC flower. All this has paved way for more marijuana users.
With more marijuana users, comes more businesses in the industry. This doesn’t mean there are more dispensaries and weed stores (although there are) but more ancillary businesses. When the gold rush hit, one of the most famous phrases was “During the gold rush it’s a good time to be in the pick and shovel business”. This means instead of trying to dig for gold, sell the item that everyone will use. In this case, instead of making money by selling cannabis from a store, you’re better off selling accessories and products for the producers, processors and retailers.
Ancillary Marijuana Business
With the rise of the cannabis industry and ecommerce online sales, there is no reason why these two wouldn’t mix. There are many online smoke shops, CBD shops, vape shops, and dispensary supply sites popping up. Many of these companies are not holding any inventory. This helps free up a lot of time so you don’t have to package any boxes yourself. It also helps business owners focus and work on their business rather than worry about finding new suppliers or vendors.
Benefits of DropShipping:
Holding inventory is very hard for a business, especially one that is just starting out. When you just start, you want to make sure you have all your ducks in a row. This means business licenses, finding the right person to do your marketing, social media and more. This puts a strain on hiring the right people. Inventory can also kill your business if there is a slow cycle and your products don’t have quick turn around.
Anytime a business lowers their overall overhead, they stand a chance to survive. With online businesses, you don’t need many things you do for a regular brick and mortar business like paying for rent, having extra employees, frontage signs and more.
No Need for a Big Warehouse
Since online businesses don’t need to pay rent, many of them are able to outlast their competition. However, if you get too big you will need a warehouse. With drop shipping, you don’t have to worry about that. You can continue to use the warehouse of a bigger vendor or supplier. They will hold the inventory for you until you’re ready to ship it out. When you get to a point where you feel comfortable getting a warehouse, drop shipping can also help there.
You also don’t need a warehouse when the products your customers are buying are repeat products. For example, if you drop ship wholesale dispensary supplies, you don’t need your customers constantly coming in to check new inventory.
More Time to Focus on your Business
Although ecommerce companies are easier to create, they can struggle to gain momentum. Most people think if you build a website, the customers will come. That is the far from the truth. Drop shipping helps you save time by helping you do more marketing and optimization of your site. This can go a long way.
How to Start Dropshipping
If you are looking to start an online business drop shipping will be the best way to start. Once you can prove to yourself that you can get consistent sales, you can establish a base for your business.
To start drop shipping, create your website and start searching for companies who drop ship the items you want to sell. For example, if you want to find vaporizers to drop ship, search “dropship vaporizers” or “vapes drop ship”. Start going through company catalogs and see what is being offered. If it matches what you want to sell, then reach out to them and ask to work out an agreement. Let them know your plans for your online business. Make sure you know all the requirements like MAP (minimum advertised pricing, the lowest price you can advertise a product).
Opportunities in Canada
Canada just legalized recreational marijuana and this is a huge deal. Although the laws for everything surrounding it are not 100% there are many opportunities. If you live in Canada, you might have thought about drop shipping cannabis since you can set up a virtual dispensary and sell it without having to deal with any inventory. Canada is already way beyond the curve. They will be offering cannabis through the Canada Post. Check with all local and federal laws before you start.
Although online businesses are not easy, they are much easier than ever. Simply start drop shipping to make your life easier. While you may not hit the ground running, once it’s all said and done, you will have an advantage over competitors who buy and ship inventory themselves.
Alex Smith is the ecommerce manager for Smoke Tokes which is one of the biggest wholesale distributors of smoking accessories, vape shops and dispensary supplies in Los Angeles.