The number of baby boomers ordering marijuana increased 19% in 2017 in comparison with an year earlier, the highest of any generation. Vaporizers and food items are most popular among millennials, while tinctures are most widely used among baby boomers. On Inauguration Day 2017 (Jan. 20), Eaze sales increased 21%, making it the seventh-most popular holiday for ordering cannabis, greater than Cinco De Mayo (May 5), Memorial Day weekend and Mother’s Day. Other well-known days include government holidays like President’s Day and the July 4th, which ranked as the third- and sixth-most favored delivery days, correspondingly.
Consumers favor ready-to-use, convenient consumption methods like vaporizers, edibles and prerolled marijuana cigarettes. In 2017, vaporizer sales increased 191% and preroll sales increased 267% from 2016. Sales of loose buy pot online, on the other hand, are wilting, having dropped 43% in the last year. Individuals are turning to marijuana being a wellness product for such things as sleeplessness, anxiety, joint pain and other ailments. 45% of respondents said they replaced sleeping pills with marijuana.
Meanwhile, other web-based services like marketplace LeafLink Inc. are utilizing the internet to connect marijuana growers and brands with retailers. LeafLink, which launched in 2016 now employs 25, facilitated $18.2 million amount of transactions in December and it is on track to facilitate $500 million amount of B2B marijuana transactions in 2108, says Ryan Smith, LeafLink’s 26 year-old co-founder.
All things are changing so quickly. People say one year within the marijuana market is like seven anywhere else. Cannabis retailers have typically managed their ordering process through email, sms messages and calls with a decentralized web of cannabis flower, edible, concentrate and topical vendors, LeafLink says. “As a purchasing manager at a dispensary you might have 25 to 50 brands on your own shelves, and also you once had to get emails, PDFs, text messages and telephone calls from brands as to what was available so when. It absolutely was old school,” Smith says.
The LeafLink marketplace lets them place all orders in just one legally compliant shopping website. The cannabis vendors then manage their incoming orders utilizing the platform’s business tools, including CRM, data reporting, order status tracking and fulfillment, the business says. LeafLink fails to process payments, however.
“LeafLink is definitely an order management platform, and so the orders are carried out online through our platform, however the brands and retailers handle their payments because they also have offline,” Smith says. “There are challenges around banking in the business, so today we don’t provide that service. Companies settle face-to-face.”
1,850 dispensaries make use of the platform and 450 brands sell through it, LeafLink says. To use the marketplace, a dispensary sends its state license to LeafLink for review and when approved, LeafLink will display marijuana brands the specific dispensary is legally permitted to purchase based upon state regulations. “Retailers only see what’s they can purchase according to state rules, “Smith says.
LeafLink, which includes raised $14 million from investors, collects a monthly charge for brands to list out on its marketplace; the service is free for retailers. LeafLink recruits sellers and buyers mainly though its team of eight sales representatives but additionally though internet marketing. But marketing is tricky for the industry, he says.
Facebook Inc., Google and Apple Inc.’s app store have a range of constantly changing rules about words and pictures related to cannabis, Smith says. “On one platform you maybe can’t create an image of a marijuana leaf, so you may have to set up an image of your logo instead,” Smith says. “I know one cannabis company having an app that took 2 yrs to have approved kifsiz the iOS app store.”
Smith’s partner at LeafLink originated from from eBay Inc., and LeafLink built all its technology in-house. The company is usually adjusting to the ever-changing regulations in the business, Smith says. “It’s significantly a living project,” he says. “In California for example, we have been basically building out our structure while they’re drafting their regulations. Things are changing so quick. People say twelve months in the marijuana industry is like seven elsewhere.”
Because cannabis is not really legal under federal law, cannabis sellers inhabit a gray area with unpublished rules which are enforced sporadically in terms of advertising their products and services online, West says. As an example, a cannabis retailer may have a Facebook page because of its business, nevertheless it can’t make sales proposes to consumer. However, Facebook Inc. has not clearly defined exactly what a sales offer is, and a few National Cannabis Industry Association members have experienced their pages rejected by the social networking network since they listed their store locations, West says.