Launching a Successful Cannabis Delivery Program

Tips for setting up a profitable and sustainable cannabis delivery service

The value of offering delivery is clear; retailers who offer delivery reach customers in new geographical areas, increase convenience for customers and bolster overall revenue. However, if not done correctly, many of these benefits can go unachieved, or at worst, delivery can become a money-loser for your business. At Buddi, we've been helping retailers in provinces such as Ontario, Saskatchewan, and Manitoba to offer delivery services for well over a year, and we've seen what works and what doesn't.

1. Decide on your delivery fee + minimum order amount

Delivery introduces new operating costs: drivers, fuel, insurance, and time. To ensure your business remains profitable:

• Charge a reasonable delivery fee to offset operational costs.

• Set a minimum order value to avoid unprofitable deliveries (e.g., $10-$20 is common).

• Consider offering free delivery for large baskets (e.g. free delivery on $100+ orders) to increase average order size.

 
Pro Tip: Start higher - you can always reduce fees later. It’s much harder to raise prices once customers are used to free or cheap delivery.

2. Decide when and where you will be offering delivery (Hours + Zones)

Where and when you deliver are just as important as how.

• Use Google Maps KML files to draw custom delivery zones (city, neighborhood, or postal code-based).

• Define your delivery hours, including whether they vary by weekday vs. weekend.

• Consider cut-off times for same-day orders to avoid rushed fulfillment.

• Clearly communicate important details to customers in multiple areas for increased visibility:

  • Website

  • Checkout page: Custom Delivery Message

  • Footer of your online menu

  • SMS/Email: Customer Notifications
    

    
    

Pro Tip: Use our queue to send real-time notifications (via SMS text/email) to customers, which triggers when the order status gets updated throughout fulfillment. 'Out for Delivery' is an important one. These can be customized in the Admin Portal > Online Menu: Messages section.

3. Offer free delivery as a large basket incentive

You can incentivize customers to order larger baskets by offering free delivery once the order hits a specific value. For example, free delivery for orders over $100.00. This simple trick can increase average order amounts upwards of 30%.
 

4. Consider a delivery logistics/fleet management system

Ensure your delivery system offers integration with delivery logistics systems, which allows you to manage your drivers more efficiently. Looking for a logistics system? Consider our integrated provider onfleet.com
 

5. Promote your delivery service to your customers

Having the best delivery system in the world won't do anything if customers don't know it's available. Stores need to actively promote delivery to customers who come in-store, such as by adding a paper pamphlet into the customer's shopping bag (PRO TIP: Add a QR code to your bags/brochures that customers receive with their order). You should also promote your delivery service on your website and social media.