This is a good decade for the cannabis industry despite the difficulties and lack of uniformity in legalizing the product. According to a recent market report, the cannabis retail point of sale (PoS) software market is predicted to achieve 14.6% CAGR growth between 2022-2029. This means that the time is right to set foot in the cannabis industry. The leading players in this market as per the report are Cisco, Cova, Apple Inc., TREEZ, and Flowhub, among others.
PoS, in simple terms, is like the checkout counter where the buying and selling transactions are processed. The checkout counters could be online or offline. In the cannabis e-commerce case, the PoS is a website or application that manages everything about the plant. These types of retail software manage everything from looking after the inventory to auditing to sales and banking. The platforms empower retailers, wholesalers, and vendors to serve customers more efficiently.
Take, for example, the Colorado-based cannabis retail software player, Flowhub founded in 2015 and now processes over $3 billion annually in cannabis sales. Its software connects online cannabis dispensaries and provides compliance, PoS, inventory tracking, and business solutions services.
The software includes many other apps that are designed to manage specific tasks. The company’s integration with Weedmaps, an online weed dispensary that provides delivery, makes ordering the plant easy. When a customer places an order on Weedmaps, the order will appear on the Flowhub Cashier app. The company’s software will track the order until the point of delivery and payment.
Another app in Flowhub’s ecosystem called Stash is responsible for curating the cannabis inventory. To know more, you can book a demo with the company.
Apart from differing federal and state laws plus bearing the cost of securing licenses, banking is another hurdle to cross in the cannabis industry. The US House of Representatives passed the MORE (Marijuana Opportunity Reinvestment and Expungement) Act on April 1, 2022. The MORE Act is a proposed bill that will remove the federal ban on cannabis and will decriminalize it. Currently, the medical use of marijuana is legal in 37 states, one territory, and the District of Columbia in the US. Meanwhile, adult use of cannabis over 21 years, is legal in only 19 states, two territories, and the District of Columbia.
Based in Vancouver, British Columbia, a cannabis retail software company called Cova Software provides its PoS system to retailers across the US and Canada. Cova’s cannabis dispensary PoS is a tablet the staff can use “anywhere in the store.” With the PoS system, you can quickly scan the customer’s ID on the tablet and add them to your customer’s list. Its PoS system also manages customer queues and orders, providing information about the desired product. The best part is that the system allows debit and credit card payments.
The key to success in the cannabis industry is knowing that prices go down as markets mature, @CovaSoftware #ceo Cohen said. #BetterDaysAreOnTheWay https://t.co/l2M6xlHhe9
— Better Days Delivery (@ABCDeliveryLLC) July 20, 2022
The future of cannabis retail
In the future, the marijuana industry will still rely on the physical experience of buying cannabis or weed. People are all already skeptical about the hype created around weed. Before buying, a customer would want to know certain details such as the look, feel, smell, and taste of the strain they opt for. This operation is hard to run fully on a cloud platform. The blend of both aspects of the physical and digital technologies is needed to run a smooth and hassle-free weed business.
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Photo credit: The images used are owned by Flowhub and have been provided for press usage.
Source: Data Bridge / Flowhub / Flowhub / Will Yakowicz (Forbes) / NCLS