On October 17, 2018, the Cannabis Act opened the opportunity for individuals or companies to apply for a license to sell cannabis online for medical purposes. Federal legislation permits the Online Sale of Cannabis for Medical Purposes. As of September 2020, there were over 377,000 registered medical clients with federally licensed sellers in Canada.

A license for the Online Sale of Cannabis for Medical Purposes allows the licensed holder to sell cannabis products directly to registered clients for medical purposes. Sales can be conducted online, through written orders, or over the phone. This is an ideal opportunity for e-commerce entrepreneurs to enter the booming cannabis market without the overhead and logistical challenges of operating a physical storefront, making it a streamlined and cost-effective way to capitalize on the growing demand for medical cannabis.

Application requirements for the Sale of Cannabis for Medical Purposes vary depending on whether the licensee opts to take possession of cannabis at their facility. Operations that involve possession will face more stringent requirements concerning security and storage. These additional requirements include guidelines for cleaning and sanitation procedures for secure storage areas, monitoring the storage area, and implementing building security measures.

Authorized sellers must obtain cannabis products from approved federally licensed processors. Registered clients must be authorized to use cannabis by a licensed practitioner. Cannabis products must be delivered to clients via courier or securely through the mail.

A license for the Sale of Cannabis for Medical Purposes also provides authorization to perform other related activities, including:

Storage

Transportation

Possession

Destruction

Intra-Industry Sale to Other Federally Licensed Holders Health Canada is responsible for license approvals, suspensions, restrictions, renewals, amendments, and rejections. As of 2020, the cost of medical cannabis in Ontario was $7.05 per gram, while the average wholesale price was $4.20 per gram (OCS). This represents a significant opportunity for license holders to benefit from increased margins. The license holder may purchase tested and pre-packaged cannabis goods for resale to the medical market. This approach significantly reduces overhead costs and allows the operator to focus on e-commerce development.

The total cannabis market in Canada generated approximately $4.5 billion in revenue in 2022, with medical cannabis sales contributing around $500 million" (Statista, 2023). Despite the growth of the recreational market, the medical cannabis sector remains robust, with a steady number of registered medical users. Contrary to initial expectations, the legalization of recreational cannabis has led to greater awareness and acceptance of medical cannabis. More individuals are now engaging in discussions with their healthcare providers about the therapeutic benefits of medical cannabis and exploring insurance coverage options, including those provided by employers or government programs for specific individuals, which has sustained the demand in this segment.

GrowLegally will partner with your company from licensing to launching a successful medical cannabis online store, including developing a strategic client acquisition strategy !