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In a recent Qredible Live broadcast, Michael Gaman, CEO of Yerbalist, joined Qredible CEO Brian Fitzpatrick to discuss critical issues affecting cannabis e-commerce success. With experience managing over $40 million in digital ad spend, Gaman highlighted key cannabis digital commerce mistakes preventing cannabis companies from maximizing their online sales potential.
The cannabis sector works differently now than in its early days, with new challenges in the digital space. As Gaman notes, "The industry has transitioned from an era where the product sold itself and revenue was guaranteed to one where competition is fierce." Companies must now adapt their online sales approaches, especially in how they handle customer interactions and checkout processes.
Most issues in cannabis e-commerce happen at the final stages of purchase. Companies often create unnecessary barriers that drive customers away, particularly with excessive verification steps and complicated checkout flows. These problems directly affect sales and revenue.
One of the most significant cannabis digital commerce mistakes Gaman identifies is excessive ID verification: "When you require an ID to make an online order... you're adding another friction point to the checkout that is going to lower conversion rates."
He explains the crucial distinction: "A purchase and an online order are different. An online order is essentially a reservation for a purchase which you will make in-store or via delivery where your ID will be captured."
The problem becomes especially acute for mobile users. Gaman describes the process: "It's legitimately hard to upload an ID on a mobile phone when you're making an online order... you have to give Chrome permissions to access your photos, take the photo of your ID, go through albums, find the photo, and upload it."
Clear product presentation and simple navigation matter greatly in cannabis e-commerce. Customers decide quickly whether to stay on a website, making it essential to show information clearly. Many sites focus too much on overly cautious compliance measures while missing basic online sales practices.
Many cannabis websites fail to display their most important content prominently. Key products and deals should appear immediately when customers land on the page, without requiring scrolling.
Missing or complicated add-to-cart functions create unnecessary barriers. Gaman emphasizes making the buying process as straightforward as possible while maintaining compliance.
How dispensaries handle pickups affects the entire customer experience. Many businesses add too many steps and requirements, frustrating both customers and staff. Simple, straightforward pickup procedures work better for everyone while keeping operations running smoothly.
"Any dispensary that has a good pickup procedure shouldn't need to ask the customer when they're going to come and pick it up," Gaman states. He recommends a simpler approach: "Just say we're going to reserve this for six hours and put it back into inventory."
"Why make it the customer's problem?" Gaman asks. "It's an operational problem... let's not put it on the checkout." He explains that regardless of when customers arrive - in five minutes or in an hour - pickup should be quick and efficient. Instead of complicating the checkout process, dispensaries should focus on their internal operations, like setting clear inventory hold times and maintaining efficient pickup procedures. This approach keeps the responsibility where it belongs - with the business, not the customer.
Cannabis businesses now have more options for accepting payments than ever before. "It used to be that you couldn't have a payment processor for CBD and cannabis businesses, now you can," Gaman notes. Smart companies offer several payment methods to make purchases convenient for all customers, leading to better sales results.
Poor website organization creates barriers between customers and purchases. A well-built cannabis e-commerce site needs both user-friendly design and proper compliance measures. These elements work together to create a smooth shopping experience.
Making customers create accounts before purchasing creates unnecessary friction. Offering guest checkout options can significantly improve conversion rates.
Many sites lack clear, accessible information about:
Good cannabis e-commerce combines simple processes with proper compliance. Companies succeeding online focus on removing barriers while maintaining necessary safeguards. These improvements lead to better customer satisfaction and increased sales.
"I believe we should be doing age gates... but my preference is The yes/no I am 21 plus. I think that does the trick from a legal standpoint," Gaman suggests for initial website access.
Key improvements should include:
Understanding your online store's performance requires consistent measurement and analysis. Regular monitoring helps identify problems early and shows which improvements work best. Smart companies track several key metrics to guide their decisions.
Success in cannabis e-commerce requires balancing compliance with customer experience. As Gaman emphasizes, "If this is a legal product and we are not advertising irresponsible usage... adults should be able to buy it easily." By addressing these common cannabis digital commerce mistakes, cannabis companies can create more efficient, user-friendly online experiences that drive sales while maintaining necessary compliance measures.
