Cannabis e-commerce option is bringing industry closer to normal

Imagine reading a review of a new cannabis strain or beverage, clicking a link and placing an order for pick up at your local licensed store later that day.

It’s one step closer to a mainstream shopping experience. And it’s what customers of licensed cannabis retailers participating in a new collaboration between legacy cannabis magazine High Times and Chicago-based cannabis intelligence platform Hoodie Analytics are enjoying.

Via a Hoodie-powered cannabis e-commerce platform now part of High Times’ digital expansion, readers nationwide can find legal products, place orders and pick them up at licensed retailers in their area.

Sales must be finalized in person at licensed retailers, ensuring compliance with state regulations. But that’s an online shopping experience similar to what everyday retailers offer, said consultant Rebecca Maestas Sincere, who previously worked at companies including Bud & Mary’s, LivWell and Dixie.

“It’s that seamless e-commerce that we’ve never seen before,” she said.

And that’s another step towards normalizing the $32 billion legal cannabis industry.

The Amazon of marijuana – connecting brands with consumers directly

It also fulfills a demand from retailers and brands for a better way to connect with their customers, Hoodie Chairman and CEO Wes Shepherd said.

“They really see that the market is broken in the way that consumers find products,” he said.

While platforms like Weedmaps enable consumers to order cannabis products online, the High Times-Hoodie collaboration will also allow them to order a product via a link in the story they’re reading, a service that appears to be the first of its kind.

“We’re directing traffic to them while providing a great customer experience,” said High Times partner Matt Stang, who along with Raw rolling papers magnate Josh Kesselman acquired the legacy magazine and brand in June.

Integrating Hoodie’s data with High Times content creates a unique nationwide shopping experience. Hoodie tracks more than 10,000 licensed retailers and 9 million product SKUs nationwide. All will be available for purchase via the e-commerce platform.

Retailers can go one step further and sign up for Hoodie Connect, a free program that offers greater exposure and order referrals from the High Times network.

“The cannabis market has been heavily reliant on promotions and discounting to drive sales, which turns products into commodities,” Hoodie President Kris Walker said.

“Our goal is to provide tools that help brands and retailers drive sales through storytelling and consumer engagement, rather than a race to the bottom.”

What about premium cannabis brands?

An e-commerce solution may offer convenience for consumers and drive traffic to retailers. But premium cannabis brands may lose out, said Max Vansluys, president of Dialed In Gummies, a cannabis brand under Austin, Texas-based Sun Theory that’s available in five states.

“As a premium cannabis brand, e-commerce is not always the friendliest because we’re being put up against a much cheaper product,” he said.

Premium brands rely on consumers interacting with budtenders, who can steer them to high-quality products that may not be the cheapest.

He added: “I’m really big on the budtender experience for the cannabis consumer.”

“When an e-commerce buyer comes in, there isn’t a point of sale where the budtenders can change the consumer’s mind – it’s transactional.”

“If a consumer doesn’t have help to navigate what is great versus what is cheaper, that’s going to be a negative for the consumer.”

That’s not to say that the platform won’t benefit brands like Dialed In.

When consumers are traveling, they can find products they want on the High Times platform and locate a dispensary in the state they are visiting, Vansluys said.

Chris Mapson, who worked for LivWell and then PharmaCann after it acquired the retailer, said consumers can determine whether a product they’re reading about is available in their area with the platform.

“Everything in cannabis is regional – it’s not a national product,” said Mapson, who now is vice president of marketing for Cannatrol.

Cannabis at a discount – through print media

In addition to the online shopping effort, High Times is also aiming to connect cannabis retailers to consumers via print media.

Cannapages, a Colorado-based coupon magazine focused on retail listings and deals, will launch High Times Local, a city-by-city print edition, in Denver, Colorado Springs and Phoenix in March.

Cannapages has been a staple in Denver and Colorado Springs for over a decade, and High Times plans to use its model in those cities as a blueprint for national expansion.

Other cities the publication is expected to launch in next year include Chicago, Los Angeles, New York and Detroit.

The bi-monthly magazine will feature a mix of coupons, advertising and locally focused content, with an initial run of 30,000 copies in Denver.

“There’s something valuable about tangible print,” said Matt Hollingshead, vice president of strategy and growth for Cannapages, told MJBizDaily.

“People want something they can touch, something real.”

Stang said physical media is seeing a resurgence among younger generations.

“Look at music – people are waiting months to buy physical albums,” he said. “There’s a desire for something that can’t be manipulated, something authentic.”

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.