E-commerce giant Shopify is set to become a major player in Canada’s legal-weed market
Shopify has set foot in legal weed industry in Canada, it is now providing weed in the province of Canada legally. The population of Ontario is 13.6 billion, which is the most populated province of Canada with the biggest city in Canada and financial centre. According to an estimate, the consumed amount of cannabis in Canada is 8.7 billion every year and Ontario consumes one-third of Canada’s population. It is a huge market Shopify will handle cannabis market in partnership with Ontario Cannabis Retail Corp.
According to their plan, the cannabis will be available at the outlets of Ontario Cannabis Retail Crop in Ontario rather than selling it in privately owned dispensaries.
According to a Canadian Press report, the Ontario Cannabis Retail Crop will use Shopify in all of its outlets to display information of the product, to make a record about a transaction, check and record sales and manage human resources.
Ontario Uses Shopify
Liquor Control Board of Ontario which controls the liquor sales in Ontario will use Shopify for its online and mobiles sale’s system. Its CEO George Soleas said to the Canadian press, “We look forward to combining our expertise as a socially responsible retailer with Shopify’s world-class commerce solutions to deliver the safe, informed and reliable shopping experience that our new customers will expect”.
The government of Ontario has chosen Shopify as a distributor of cannabis in the province which adds 2 billion dollars to gross merchandise volume per year. Prime Minister Justin Trudeau said Canada will legalize Cannabis by July 1, by the central government also.
The Ontario cannabis retail crop is planning to open 80 more outlets in Ontario by the year 2019 and 150 more by the year 2020.
The instant demand for cannabis in Canada is totally beneficial for Shopify. OCRC will contribute approximately $480,000 to high margin revenue and on a low margin revenue, it will be approximately $50 million with $6 million gross profit.