Will Amazon Soon Be Selling Cannabis?
If you’re like me, and well, a lot of folks, you utilize Amazon to purchase a variety of products. While I don’t like the excess packaging and I try to shop at local businesses as much as possible, the convenience of having a new cell phone charger sent to me within two days is just too nice to pass up. If the United States, as expected, follows in the footsteps of Canada, will Amazon soon be delivering cannabis to people’s homes? According to the CEO of Eaze, a cannabis delivery service with the goal of becoming the “Amazon of weed,” the online retail giant will indeed get into the marijuana market, as reported by Yahoo Finance:
“I think there’s no doubt that eventually Amazon will get into this business. The question is, is that five years, 10 years, or 20 years,” says Eaze CEO Jim Patterson. “I think it will be a bit longer for them … until there’s much more clarity at the federal level.”
With laws changing around the country, legal sales of marijuana are expected to more than double in the next five years. Venture capital has taken notice with a reported $700 million worth of investments. Eaze is one of the most highly funded cannabis startups, delivering products in major cities across California.
Patterson says the company leverages technology to create easy access. “Instead of having to go to a store, a dispensary, you can download an app, or go to our website, and you’re able to shop the products from a local dispensary, and then have those products delivered to you.”
We’ve already seen several big companies get into the cannabis industry, particularly in Canada, where a few alcohol companies have dipped their toe into the market, while a big grocery chain has fully jumped in, with plans to open their own cannabis stores. However, we’ve never seen a company like Amazon get into the cannabis industry, but I guess we shouldn’t be surprised, once U.S. law allows it. While many will fear Amazon’s entry, there will still be plenty of opportunities as many consumers want to actually look at the cannabis they are purchasing as well as take a whiff from various jars at retail stores.
More craft cultivators and processor may eventually find a bigger marketplace by selling directly to consumers across state (and maybe even international) lines. Amazon CEO Jeff Bezos is currently planning on selling trips to space soon, it’s to be seen if he wants to help people alleviate their medical condition or experience lift off from their favorite strain.
Learn the latest developments in cannabis business and politics while networking with top investors, professionals, and advocates from around the world at the International Cannabis Business Conference in Portland, Oregon, this September 27th-28th. Get your tickets by September 12th to save $200 and secure your spot at the ICBC before it sells out.