The cannabis B2B (business-to-business) and D2C (direct-to-consumer) ecosystems are rapidly evolving as laws, regulations, and significant policy changes continue to move forward. Several years ago, individuals both old and young would’ve called the decision of legally selling cannabis a “reckless” one. Yet, today, we are witnessing a swift transition when it comes to the point-of-purchase.
Some cannabis consumers consider the “traditional” way to purchase weed the only way – either from your backyard or your local dispensary. Yet, many others are quick to ditch retail dispensaries for a seamless and convenient transaction straight from their iPhone.
The Pandemic and Expedited Cannabis Services
For various industries, the first few months of 2020 were unprecedented, at the very least. Government coronavirus policies pushed non-essential businesses to either shut down or adapt, struggling to keep their company afloat. That said, professionals and cannabis consumers quickly learned the cannabis industry is one classified as essential.
However, to satisfy consumer demand during the months-long coronavirus pandemic lockdown, dozens of cannabis brands began shifting their go-to-market strategy. This evolving approach for THC brands to go D2C is now sparking a race for delivery services to build out white labeled backend and fulfillment capabilities.
Giving The Consumers What They Want
Today, there’s one element ultimately steering the ship of consumer satisfaction: convenience. Consumer satisfaction essentially determines the overall success of a company, its product, and its future.
California cannabis brands and delivery services are providing the ultimate convenience for consumers with complete online ordering experiences to bypass the middleman, like retail dispensaries.
The Meaning of D2C
So, what does D2C mean? Direct-to-consumer is basically when a wholesaler, manufacturer, or producer transacts with individual end consumers through an e-commerce website.
There are many benefits for cannabis brands implementing a D2C approach, on top of going B2B or retail space in dispensaries. Control over brand management, consistent omnichannel marketing, deep user research, data bandwidth, as well as alignment with modern consumer expectations are primary advantages that this newer model is bringing to the state’s top THC brands. They are essentially creating their own online storefront.
Why Go Direct-to-Consumer?
Another element to consider for D2C is the overall eCommerce sales in the United States. According to data, direct-to-consumer sales, or D2C sales, in the U.S. rose from $6.85 billion in 2017 to $17.75 billion in 2020. That’s a 100% increase in sales within just three years – that is significant.
Furthermore, as customer habits begin to mold to a new online lifestyle, online sales are projected to keep increasing. More than half of shoppers prefer to shop with manufacturers rather than retailers. More than half of online shoppers want to cut the middleman out. More than half of online shoppers prioritize convenience.
Is Buying Cannabis Online Legal?
In short, yes. Buying weed online is legal in California as long as the company you are buying from is licensed to sell and delivery your purchase.
How Are Brands Going Direct to Consumers?
Cannabis brands in California are swiftly changing their go-to-market approach to D2C for one or two reasons. Either the cannabis brand is seeking additional distribution channels to increase product sales.
Or, cannabis delivery services are recruiting cannabis brands for their site and additional revenue stream. As such, delivery services are racing to build out the D2C funnels so cannabis brands can integrate seamlessly into their checkout system.
That’s been a significant shift, if not the significant shift. Now, these e-commerce experiences and delivery service platforms are white-labeled for the brand to have their consumer data passed back and sell their products.
Direct-to-consumer is a go-to-market approach that has everyone’s interest. It’s the industry’s position right now where all of the providers, all of the fulfillment, all of the “delivery services” compete against each other to provide the best product and service.
Top Cannabis Brands Fulfilling Consumer Needs
Three California cannabis brands selling D2C stand out: Flow Kana, Bloom Brands, and Pabst Labs. Cannabis consumers can find these products in retail dispensaries and now, on direct online platforms. So, next time you want to try one of these brands, you can check out with a touch of a button in the comfort of your own home within just minutes.
Flow Kana’s cannabis, otherwise known as Farmer’s Reserve, is top-shelf, sun-grown flower with a full-bodied taste, offering incredible depth in terpene and cannabinoid profiles. Flow Kana’s cannabis is some of the most advanced in the state of California.
As they say, Flow Kana is the ultimate expression of Emerald Triangle cannabis, giving you the best experience just as Mother Nature intended. You can order Flow Kana’s premium craft cannabis online using their direct online shop – Flow Direct.
Bloom Brands curates high potency cannabis products that highlight the diversity and flavor of strain profiles. With a drive to share the gift of cannabis with others, The Bloom Brand’s team made it a priority to offer their proprietary cannabis products direct-to-consumer. The brand’s live resin vape pens line is available throughout California. But, cannabis consumers can also visit their online shop Shop Bloom Direct to explore exclusive marijuana strains and prices.
A relatively new and emerging form of cannabis edibles, Pabst Labs is joining the D2C game with a cannabis-infused high seltzer. Only containing 5-10 mg of THC per can, Pabst Lab’s cannabis-infused seltzers are an ideal tonic for social settings. Cannabis consumers, both new and experienced, can purchase Pabst’s high seltzers through their direct online shop.
There seem to be several new cannabis brands each month, saturating the market with more and more competition. Sometimes walking into a dispensary can be overwhelming – the smell, product assortment, endless options, and unique music.
Perhaps shopping online for cannabis brands is the more appropriate first step to familiarize yourself with cannabis. As such, some of the top cannabis brands and cannabis delivery service platforms aim to stream their products online and direct-to-consumer.