Ryan Herron

Dispensary Data Shows The Impact of Online Ordering

While cannabis retailers might have been disappointed with the lack of events or celebrations on 4/20 due to COVID-19, they certainly weren’t disappointed with the sales growth driven through online ordering systems.  

Dispensary Online Ordering Increased Alongside Covid

As the global pandemic has forced retailers to adopt online ordering and curbside pickups, cannabis consumers were forced to shop for cannabis digitally. Data from Happy Cabbage Analytics suggests that this change in process also led to a change in consumer behavior observed a few years ago in the restaurant industry: people spend more when they order online. 

To better understand the impact of online ordering, we compared average order value for deliveries and retail on 4/20 this year against last year. Delivery orders have been placed online for a while, and thus we don’t observe much movement: average order value of $158 vs. $159 last year. 

However, retail orders are now being placed online much more frequently than at this point last year. As a result, average order value for retail transactions ballooned to $70 in 2020, a 30% increase from $54 in 2019

Cannabis consumers prefer online shopping for a number of different reasons. Some like to take their time browsing without feeling like they’re holding up the line. Others enjoy being able to swap items in and out of their cart without being a nuisance to a budtender. Regardless of the reasons at play, retailers need to capitalize on this trend by creating excellent online experiences.