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Modern retail experiences include a variety of ordering options, such as delivery and curbside pickup.
For dispensaries, the problem with these options are their heavy restrictions and high upfront costs.
Cannabis retailers that want to avoid in-store transactions and minimize cash are turning to something called “pre-payment” where customers pay online for orders, then pick them up in-store. This simple adjustment is yielding impressive results, like more efficient workflows and increased revenue.
Some legal cannabis markets, like New York, even require pre-payment for cannabis delivery orders. It’s something we’re going to see much more of going forward.
This post discusses the concept of pre-payment, why it’s a growing trend in cannabis, and the impact of adding pre-pay orders at your cannabis shop.
Learn everything about cannabis payments.
A pre-payment, or buy online pickup in store (BOPIS), means a dispensary customer pays for their order online, then visits the store to pick it up. When they arrive to grab their items in-store, they can skip the line, pick up their order, and leave.
In cannabis, pre-payments must be processed using an ACH solution (instead of PIN debit or cashless ATM). This is because card payments at dispensaries require a customer to be inside of the store to physically enter their PIN. With ACH, funds can be authorized online, allowing customers to place an order and pay for items without going into a store.
It’s already standard practice for traditional retail powerhouses like Target, BestBuy, Footlocker, and many others to allow customers to pay online and pick up in-store. This process offers a fast, convenient method of ordering and has shown clear signs of efficacy.
Now, leading MSOs in cannabis are adding ACH pre-payment options to capitalize on a growing number of online buyers and simplify cannabis payments – a historically cumbersome process.
Offering pre-payment in a dispensary setting comes with a long list of benefits, including increased revenue and greater store efficiency. Let’s dive into each benefit more closely:
Because pre-payments happen online, they’re encouraging customers to order at home. Online orders that are picked up in-store provide a unique customer shopping experience. Shoppers get to browse and compare products from home, but avoid high delivery costs or long waits for curbside pickup.
Put simply, pre-payment offers the convenience of online shopping with the reliability of making a purchase in-store. This is a unique, enjoyable offering to set your dispensary apart and delight customers.
When your customers are pre-paying, it means they’re paying digitally, which means they’re spending more than they would with cash.
Aeropay digital payment users spend an average of 25% more. This means encouraging shoppers to pay online offers a nice boost to your revenue.
Customers who pre-pay for their order are far more likely to actually pick that order up.
In fact, the amount of online orders that never get picked up goes down significantly with pre-payment. That means your staff won’t be putting away unclaimed orders at the end of the day.
On top of all the other benefits of pre-payment orders, perhaps most interesting is the impact the workflow has on a retailer’s competition.
Harvard Business Review conducted a study on a major retailer’s sales after their biggest competitor launched “buy online, pick up in-store”. The results offer solid proof that consumers not only flock to this concept, but even purchase more expensive items.
Results of the study include:
Not only is ACH the most stable and affordable payment solution for dispensaries, it’s also the only compliant pre-payment option in cannabis.
Customers and businesses love using Aeropay for ACH cannabis payments because they’re fast, secure, and don’t require any sensitive information. Once a shopper pre-pays with Aeropay once, they’re able to pay in seconds forever.
Book a demo to learn more about adding pre-payments at your dispensary.
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