There are so many upsetting and disturbing developments that have occurred over the last month regarding the global COVID-19 pandemic that it is hard to count. However, there is one certain development that has been quite interesting in regard to cannabis legalization. Many states one after the other have deemed cannabis businesses vital, particularly during coronavirus.
This is the kind of validation that the cannabis industry has been looking for since prohibition. And this vital or more specifically “essential” new status has caused a surge in cannabis sales across the board as cannabis patients and users stockpile the products they feel they need the most in order to get through these challenging times.
Cannabis Businesses Deemed Vital During Corona Pandemic
During the COVID-19 pandemic, many states have deemed cannabis business vital. These businesses may continue to stay open until further notice, provided that they follow the guidelines and rules that are intended to prevent the spread of coronavirus, including social distancing and sanitary measures. Cannabis retailers are found under two sections on the list of vital businesses:
- Healthcare/Public Health: Workers in other medical facilities (e.g. clinics, blood banks, ambulatory health and surgical, cannabis retailers, consumer health products, biotechnology therapist, etc.)
- Food and Agriculture: Workers supporting dietary supplement retail and cannabis retail.
Even though cannabis processors and producers are not explicitly stated, they are also almost certainly included since their workers support cannabis retail.
Cannabis Sales Have Spiked Due to the Coronavirus Pandemic
Millions of people are confined to their homes because of coronavirus outbreak and that has resulted in increased cannabis sales. Many cannabis market research companies have been monitoring how the pandemic has affected cannabis businesses around the world and they have reported that cannabis inventory levels had declined in most states due to consumers buying at higher rates than usual. For instance, in California, a general cannabis retailer had enough cannabis inventory to last about five weeks but now because of the increased demand, those retailers have enough for about three weeks. The story is the same in many other states, including Colorado and Washington that voted to legalize recreational cannabis use for adults many years ago.
Curbside Delivery Rules Relaxed
Many states have also relaxed the rules involving curbside cannabis delivery. Certain curbside delivery rules have been relaxed for medial cannabis patients. It was a temporary policy that has now been extended to all customers. Although the guidelines are not very explicit on the actual purchase, the temporary policy now allows cash to be exchanged for cannabis products outside of the store. Rules have also been relaxed for cannabis producers and processors and they are to remain effective until further notice.
Delivery is Now the Ideal Way to Get Cannabis
During the COVID-19 pandemic, home delivery has become the ideal way to get cannabis. States that did not allow delivery services before the coronavirus outbreak will face some difficulties returning to business as usual once things clear up. Delivery of cannabis will most likely be a staple to this industry moving forward. Call us if you are in need of a Cannabis Merchant Account, as we are here to help.
About The Author
Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial related topics.