In today’s cannabis landscape, retailers are strategically deploying deals—whether for delivery or pickup—to shape customer behavior and maximize revenue. Understanding why delivery deals often eclipse pickup promotions requires a close look at economics, consumer psychology, operational costs, and market trends.
The Convenience Factor & Customer Demand
Delivery offers unmatched convenience—customers can order discreetly from home and skip travel, lines, and in-person interaction. According to a recent consumer study, a majority cite privacy and time‑saving as their top reasons for choosing delivery. This demand gives retailers a strong incentive to push delivery deals, reinforcing the behavior and boosting online sales.
Economic Upside for Retailers
Partnering with delivery platforms or expanding in-house delivery extends a retailer’s geographic reach with minimal upfront investment. Third-party delivery platforms increase visibility and reduce logistics burden—retailers don’t need extra inventory or infrastructure. Meanwhile, flow-through promotions encourage customers to order more frequently and in larger quantities, improving average order value.
Operational Efficiency & Cost Control
Delivery orders tend to be more controlled and predictable. Retailers can batch orders, align with drivers’ routes, and manage stock precisely. In contrast, in-store traffic is harder to forecast—deals that drive foot traffic may strain staff, cause stock-outs, and extend wait times. Delivery deals soften these operational hiccups and lower staffing overhead per customer served.
Compliance Incentives & Regulatory Requirements
Regulations often dictate operational form. For example, in Denver retailers can’t self-deliver—they must pay a surcharge per order and rely on licensed third-party services. To offset these extra costs and comply with mandatory fees, retailers will design delivery-specific discounts—e.g., free delivery over a certain amount—to maintain margins.
Data-Driven Deals & Behavior Reinforcement
Delivery platforms gather rich data—order patterns, product preferences, and demographics. Retailers tap these insights to tailor deals and optimize upselling. The result? Personalized offers that drive more engagement, greater spend, and deepened customer loyalty—harder to replicate in-store without the backend infrastructure.
The Pickup Paradox
While pickup saves operational costs, it lacks the friction-reducing draw of delivery. Deals for pickup often attempt to balance driving foot demand—like “10% off in-store only”—but they rarely match the appeal of free or discounted delivery. Pickup deals may also cannibalize full-price in-store sales, eating into margins without adding significant volume.
Consumer Preferences & Demographic Trends
Demographic trends show that older adults tend to prefer delivery over in-store shopping—almost 73% of baby boomers cite discretion and convenience as key motivations. Younger consumers, while open to browsing in stores, are just as value-driven. Retailers tailor delivery deals to retain older customers and match the digitally native habits of millennials and Gen Z.
Final Take
Retailers push delivery promotions because they align with consumer demand, operational flexibility, data insights, and compliance regimes while enabling greater profit control. Pickup deals remain valuable—drawing store traffic, promoting brand experience, and avoiding delivery fees—but often serve a supporting role. Ultimately, successful cannabis retailers opt for a hybrid approach: using delivery deals to grow and retain customers online, while leveraging pickup perks to enhance store experience and maintain margins.