Cannabis Trading Software: Key Features to Consider

Gone are the days of tedious phone calls and countless emails cluttering your wholesale cannabis transactions. Whether you're looking to buy weed in bulk or find dispensaries eager to purchase your products, a cannabis trading platform offers a much more intuitive, straightforward, and efficient way to connect and conduct business.

Since the cannabis industry is constantly evolving, and a big reason for that is all the complicated rules it has to follow, generic technological solutions may lack the functionalities you need to manage your operations and B2B relationships. This highlights the importance of using specialized tools.

Fortunately, cannabis trading software has changed the game by addressing the unique market demands, regulatory requirements, and logistical challenges that standard solutions don't accommodate.

Want to find the right cannabis trading platform for your business? In this blog post, we'll go over the key features and aspects to consider when choosing one that meets your needs and streamlines your operations. Read on!

What is a Cannabis Trading Platform?

A cannabis trading platform is a digital marketplace specifically designed to simplify B2B transactions between cannabis companies.

Unlike standard business solutions, this industry-specific software connects licensed entities across the cannabis supply chain. Plus, it's equipped with compliance-focused tools, such as integrations with state-mandated track-and-trace systems like Metrc and BioTrack, and cannabis inventory management capabilities.

In simple words, it's a wholesale cannabis marketplace that facilitates communication between buyers and sellers, allowing licensed operators to handle negotiations and establish ongoing business relationships with other licensees.

How Cannabis Trading Platforms Work

So, now that you understand what it is, let's answer: How does a cannabis trading platform work? As mentioned, these solutions provide a centralized online environment where you can connect with other industry operators.

Whether you're a licensed cultivator, manufacturer, or distributor, you can use this online space to showcase your products, listing key information like their strain type, potency, available quantity, and price.

On the other hand, if you're a licensed processor, retailer, or another authorized buyer, you can explore available offerings and filter your searches based on specific criteria (THC/CBD content, price, product type, and other relevant pieces of information) in order to find the products that meet your needs.

Generally, a B2B cannabis platform works based on an order-to-delivery model. Once you place an order, the software generates the transaction, tracks inventory levels, helps arrange shipments, processes payments, and produces invoices.

Many are built as comprehensive cannabis supply chain solutions and integrate logistics capabilities to streamline the movement of goods, even maintaining a detailed audit trail of all transactions from the time the order is shipped by the seller until it reaches the buyer.

Key Features to Look for in Cannabis Trading Software

Now, let's answer another question you may have in mind: What features should I look for in a cannabis trading platform? When evaluating options, you should prioritize those equipped with features that can significantly impact your operations and help you grow your business, including the following:

• Inventory management
• Compliance tracking
• B2B marketplace capabilities
• E-commerce integration
• Data analytics and reporting
• System integration capabilities

Let's dive into each so you can understand their role in your cannabis trading software.

Inventory Management

You need efficient cannabis inventory management. The perishable nature of some marijuana-based products makes it crucial to have accurate control of your inventory to minimize losses and maximize profitability. However, this isn't just about efficiency.

If you operate in this industry, you're legally required to monitor your inventory and report on your operations from seed to sale. That means proper cannabis inventory management is also essential for compliance.

So, ideally, your cannabis trading software should have:

• Real-time inventory tracking capabilities: With these features, you can know exactly how much of each product you have on hand across all your locations, at any given time.
• Batch tracking and management: Since each batch of cannabis products typically has a unique identification number, you can track them individually from cultivation to sales, as well as identify those that need to be isolated if any issue arises.
• Low-stock alerts and forecasting tools: If you receive notifications when specific product quantities are running low and are able to analyze historical data to predict future demand, you can optimize your purchasing/reordering and production planning to avoid shortages and overstocking.

Compliance Tracking

Your business must comply with strict federal, state, and local regulations, which can be challenging. Therefore, you should look for a platform that integrates with cannabis compliance software or features compliance-focused tools, including the following:

• Integration with state tracking systems: Depending on the state where you operate, you'll be required to use a track-and-trace system to report your inventory movements and other required information. Metrc and BioTrack are the most common, so the ideal cannabis trading platform should integrate with them.
• Automated compliance reporting: Since you also need to generate reports for regulatory bodies, you should choose a software solution that can pull data directly from your records and automatically generate the required documentation to reduce the risk of manual errors and save you time.
• License verification systems: It's important to ensure you're conducting business with only licensed cannabis operators, so you should choose a B2B cannabis platform with built-in license verification systems that can check and validate your partners' documentation. This way, you can mitigate the risk of illegal transactions.
• Documentation and record-keeping features: You should keep comprehensive records of all your transactions (purchase orders, invoices, shipping manifests, and so on) to demonstrate compliance during audits and inspections. That's why it's also advisable to choose a software solution where you can securely store and access these documents when necessary.

B2B Marketplace Capabilities

A B2B cannabis platform should be designed to facilitate business-to-business transactions and expand your market reach. Thus, you should look for one with the following features:

• Wholesale ordering functionality: The ideal platform should function as a wholesale cannabis marketplace where sellers can easily list their products and buyers can intuitively browse product catalogs. It should have features that streamline the purchasing process, such as customizable order forms and pricing tiers.
• Buyer/seller matching and discovery: Some trading platforms help buyers find compatible sellers, and vice versa, based on their product needs, purchasing behavior, location, and other relevant criteria. This functionality can help both parties expand their partner network and market reach, so it may come in handy.
• Pricing tier management: In a wholesale cannabis marketplace, sellers often set pricing with different tiers based on customer type, order volume, or purchase frequency. A well-designed platform should allow you to easily manage and apply different pricing structures to product listings, so you can make your offers more attractive and reach other market segments.
• Order processing and tracking: For both buyers and sellers, tracking is extremely important. Therefore, a cannabis trading platform should allow sellers to manage the fulfillment process, generate shipping labels, and update order statuses. Buyers should also have the opportunity to track their orders in real time until delivery.

E-Commerce Integration

If you want to offer online options to your potential retail partners, you should consider a software option that integrates with a cannabis e-commerce platform or functions as one. These are the key features to look for:

• Online storefront options: If your cannabis trading software allows you to create branded online storefronts or connects with a platform that does, you'll be able to showcase your products in a professional manner and allow your retail partners to easily browse your offerings.
• Payment processing capabilities: A good trading platform should also integrate with secure payment gateways to facilitate online transactions. It's essential to choose one designed for the cannabis industry that supports payment methods commonly used in B2B commerce.
• Shopping cart functionality: The software should also have a shopping cart solution that is user-friendly, allowing buyers to easily add multiple items to their orders and review them before checkout, making the experience similar to traditional shopping.
• Product catalog management: Your cannabis sales platform should also allow you to efficiently manage your online product catalog, so you can easily add new products, update descriptions and pricing, and inform potential buyers about product availability.

Data Analytics and Reporting

Gaining insights into your operations helps you identify areas for improvement, analyze trends that can benefit your growth, and fulfill your reporting obligations, which is key to making good business decisions. Thus, you should prioritize software options that offer the following:

• Sales performance metrics: Your cannabis trading software should track and provide access to key sales indicators that can help you identify your most successful products and optimize your sales strategies. This includes total sales volume, top-selling products, average order value, and sales trends.
• Customer behavior insights: To tailor your strategies to potential customers' needs and improve your marketing efforts, it's important that you understand how others interact with your listings. That's why you should choose a software solution that offers information on purchasing patterns and other key aspects.
• Inventory turnover reports: If you want to optimize your inventory purchasing decisions and reduce potential waste, your cannabis trading platform should allow you to monitor how quickly your inventory is being sold and how strong the demand is for certain products.
• Compliance reporting: Beyond integrating with state-mandated systems, your cannabis trading software should provide reports to help you identify potential risks or regulatory failures and ensure adherence with applicable laws.

System Integration Capabilities

Your cannabis trading platform shouldn't operate in isolation but should integrate with the platforms you use to reduce manual errors, ensure consistency, boost efficiency, and save you time. Therefore, you should consider the following options:

• Compatibility with other cannabis business software: Ideally, your trading platform should integrate with other specialized tools you might be using, such as your cannabis seed-to-sale software and your CRM system, to streamline operations on all fronts.
• API availability: An open Application Programming Interface (API) allows for custom integrations with other software solutions, providing greater flexibility and control over your data flow. Therefore, it's recommended that you choose options with these capabilities.
• Integration with accounting software: To streamline key financial processes and enhance record-keeping, your cannabis trading software should integrate with accounting solutions like QuickBooks, Sage, and Xero.
• Mobile accessibility: If you can access your platform from a mobile device, you'll have the opportunity to manage essential tasks even while you're on the go, which is a huge advantage.

Benefits of Using Cannabis Trading Software

So, what are the benefits of using a cannabis trading platform? If you use the right option, this type of software can bring many advantages to your cannabis business, from saving time and better optimizing your operations to enhancing regulatory compliance and expanding market reach. Here's an in-depth look at the most important ones:

• Streamlined operations and workflow: By automating many manual processes involved in B2B cannabis transactions, this platform can optimize your operations and boost efficiency. For example, an option with the capabilities of cannabis distribution software will centralize and automate key tasks (cannabis inventory management, order processing, invoice generation, and shipment tracking), reducing the need for manual data entry, minimizing errors, and saving you time.
• Improved compliance and reduced legal risks: In the highly regulated cannabis industry, complying with all applicable rules can be a constant challenge. A cannabis trading software with integrated compliance features can help you stay on the right side of the law by automating tracking and reporting, verifying your partners' licenses, and facilitating many of your other legal obligations.
• Expanded market reach and sales opportunities: For sellers, using a trading platform offers the chance to access a wholesale cannabis marketplace with more qualified buyers, which unlocks new opportunities to connect with a larger audience and boost sales that may not be accessible through traditional methods. Similarly, for buyers, this type of specialized software becomes a place to find new suppliers and products.
• Better inventory control and reduced waste: As mentioned, accurate cannabis inventory management is essential to avoid both stockouts and overstocking, as it allows you to make informed purchasing and production decisions. Consequently, this reduces the likelihood of lost sales due to insufficient stock or financial losses due to expired or unsold products.
• Enhanced customer relationships and retention: Since a cannabis sales platform provides a more efficient, transparent, and reliable trading experience, using one can contribute to stronger and more beneficial relationships with your business partners. Furthermore, the right software can streamline ordering processes, establish clear communication channels, and improve order fulfillment times, promoting customer satisfaction and loyalty.

DistruCommerce - A Next-Generation Cannabis Wholesale Solution

Now that the definition, essential features, and benefits of a cannabis trading platform are clearer, let's take a closer look at a specific solution that addresses the unique challenges of this market: DistruCommerce.

What Makes DistruCommerce Different

As a next-generation B2B cannabis platform, DistruCommerce features all the industry-specific tools you may need, but it's like no other software you've tried.

Unlike generic e-commerce solutions, DistruCommerce is specifically designed for cannabis brands and distributors. For example, it displays detailed product information relevant to this market, such as cannabinoid profiles and terpene content.

Furthermore, our platform was built by insiders with deep roots in the cannabis industry, whose knowledge laid the foundation for creating a solution that genuinely understood and addressed the pain points and complexities faced by cannabis operators. That's why it's so intuitive and effective.

While many wholesale cannabis marketplace platforms operate on a commission-based model and take up to 25% of each transaction, DistruCommerce breaks the mold and works on a subscription basis, meaning you can save a ton by paying zero commission fees.

Finally, our software gives you complete control over your branding, pricing strategies, and direct relationships with your customers, so you'll have the opportunity to interact more personally with buyers and build a stronger business that doesn't get lost amidst numerous listings.

Key Advantages of DistruCommerce

DistruCommerce offers many advantages when it comes to cannabis business management, especially if you operate at the wholesale level. Below are the most important ones:

• DistruCommerce allows you to create a fully branded menu that reflects your unique identity and showcases your products your way, helping you stand out in the competitive cannabis wholesale marketplace.
• Since DistruCommerce integrates in real time with your cannabis inventory management system, it ensures that your digital menu accurately reflects your stock levels, preventing products that are no longer available from being oversold.
• DistruCommerce is equipped with built-in features that help you verify the licenses of all potential buyers or partners, so you can be sure you're only conducting business with legally authorized entities and avoiding unlawful transactions.
• Supporting multiple pricing models, DistruCommerce allows you to easily implement tiered pricing based on order volume, offer promotional discounts, and customize pricing options for different clients, so you can optimize your strategies and maximize profitability.
• DistruCommerce offers powerful analytics and insights into your business performance, allowing you to track key metrics, understand customer purchasing patterns, identify top-selling products, and gain access to the data you need to make informed decisions within the cannabis wholesale marketplace.

Flexible Implementation Options

Besides being feature-rich, DistruCommerce is completely flexible. To implement our solution, you can choose the option that best fits your existing infrastructure.

For example, our B2B cannabis platform works perfectly with or without the Distru Enterprise Resource Planning (ERP) system. It can be used as standalone software or integrated with our broader ecosystem.

In addition to integrating with your cannabis business management software, DistruCommerce can connect with many other solutions you may have in place, including cannabis-specific options and generic ones tailored to this industry.

For instance, DistruCommerce integrates with popular retail systems like BLAZE, Treez, and Dutchie, synchronizing data across both platforms, which can facilitate transactions between distributors or brands and retailers.

Our solution is also compatible with state-mandated track-and-trace systems, specifically Metrc and BioTrack, and maintains seamless data flow between your software and the chosen platform, which is essential for accurate reporting and regulatory compliance.

Want to optimize your cannabis accounting practices? DistruCommerce also integrates with popular software like QuickBooks, Sage, and Xero, simplifying your financial management.

Who Benefits Most from DistruCommerce?

Do you operate a cannabis brand and are tired of marketplace fees? Are you a distributor and manage multiple product lines? Do you run a vertically integrated cannabis business that grows, manufactures, and distributes its own goods? In any of these scenarios, DistruCommerce may be for you!

Our solution's zero-commission model allows you to reach wholesale buyers without losing a significant portion of your revenue on fees. Additionally, it's equipped with all the tools you may need for cannabis distribution management, even if you have a diverse portfolio of products, and provides a centralized platform where you can control all your wholesale operations, sales, branding, and pricing.

Comparing Leading Cannabis Trading Platforms 

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How to Choose the Right Cannabis Trading Platform for Your Business

Have you ever wondered, "How do I choose the right cannabis trading platform for my business?" To select the ideal option, you must consider several factors, including your needs and goals, your business's size, your current system's requirements, and the provider's reputation. Below are more tips to help you make a good decision.

• Assess your specific business needs and size: Thoroughly evaluate your operations to identify your requirements. Ask yourself: Are you a small craft cultivator primarily focused on local distribution, or a large multi-state operator dealing with complex logistics and numerous retail partners? What are your business's areas for improvement—sales processes, order fulfillment, pricing structures, inventory management, or compliance? If you understand your needs, you'll be able to find a cannabis trading platform with the features that are critical to your company.
• Consider your growth trajectory and scalability requirements: Think about your plans for the future. Where do you see your business in the next five years? Do you want to expand your product lines, reach new market segments, or increase your sales volumes? You should choose a cannabis trading software solution that scales as your business grows and adapts to your evolving needs.
• Evaluate integration capabilities with your existing systems: Does your cannabis trading platform connect with the tools you currently use—accounting tools, seed-to-sale tracking system, CRM, etc.? This is key to your ecosystem's efficiency, so you should assess your cannabis software integrations when choosing this solution.
• Analyze pricing structures and long-term costs: Each platform has its own pricing model, with many including subscription fees, transaction fees, or a combination of both. It's crucial that you understand how each solution works and analyze the total cost of ownership, considering not only the initial price but any potential fees associated with transactions, user accounts, customization, or additional features. Ideally, you should choose a cannabis trading platform whose pricing structure aligns with your business's budget and financial projections.
• Read user reviews and request demos: Do you already know which is the ideal cannabis trading software for your business? Before making a final decision, take the time to research what people say about the provider. Testimonials can give you insights into the real-world experiences of others using the platform. Additionally, you can request demos from the ones you're considering to test their features and determine if they truly meet your specific requirements. Spoiler alert: You can request a demo to try out Distru here!

Conclusion: Finding the Ideal Cannabis Trading Platform

Business partnerships are essential to success in this industry, but how can you ensure these relationships are long-lasting and beneficial for your company? Where can you even find your buyers or suppliers? Well, this is the magic of a cannabis trading platform.

As the market grows, businesses are increasingly relying on cannabis trading software to streamline wholesale transactions, boost sales, foster brand awareness, and increase effectiveness. However, you need to choose the right one in order to leverage all these benefits and ultimately drive growth, maximize profitability, and maintain compliance. Fortunately, you just need to evaluate your needs, understand the key features to look for, and consider comprehensive solutions like DistruCommerce to make the perfect choice.

Trading platforms are transforming the way cannabis businesses operate. Ready to try a robust one? DistruCommerce is waiting for you!

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