Cannabis delivery continues to expand across legal markets, from fast-growing states like Michigan and New Jersey to long-established delivery hubs such as California. For many dispensaries, the biggest strategic question isn’t whether to offer delivery—it’s whether to build an in-house logistics program or outsource the entire operation to a third-party service provider. Each route carries distinct cost structures, risk levels, and operational implications that can dramatically influence profitability.
The Cost Structure of In-House Delivery
Running logistics internally gives dispensaries complete control over brand standards, compliance processes, and customer experience. But achieving that level of control requires significant upfront and ongoing investment.
Vehicles and Fleet Costs:
Purchasing or leasing vehicles is the largest capital investment for in-house logistics. A modest fleet of three cars can cost $45,000–$90,000 upfront, depending on whether the operation chooses fuel-efficient gas sedans, hybrids, or electric vehicles. EV fleets may lower long-term fuel and maintenance costs, but chargers and infrastructure add an additional $3,000–$8,000 per station.
Insurance and Security:
Cannabis transport requires specialized commercial insurance, which is often more expensive than coverage for standard retail operations due to the high-value cargo. Many dispensaries spend $2,000–$4,000 per vehicle annually. GPS tracking systems, secure lockboxes, and state-required telematics tools add several hundred dollars per vehicle per year.
Labor and Training:
Driver wages typically range from $18 to $25 per hour, plus benefits and payroll taxes. Training for compliance, ID verification, and secure transport procedures adds recurring costs. For a dispensary making 25–40 deliveries per day, labor often represents the largest recurring expense.
Technology and Compliance Tools:
Internal systems require compliant software integrations, route optimization tools, delivery tracking features, and state-mandated reporting platforms. Many dispensaries pay $500–$1,200 per month for integrated logistics software stacks.
While an in-house program builds long-term strength and brand consistency, the cost curve is steep during the first six to twelve months.
The Cost Structure of Outsourced Logistics
Outsourcing delivery shifts operational complexity to a third-party partner while allowing a dispensary to offer delivery without heavy capital investment.
Per-Delivery Fees:
Most logistics partners charge either a per-delivery fee (often $7–$18) or a percentage of the order value (usually 10–15%). For low-volume retailers, this model can be far cheaper than hiring drivers and maintaining vehicles. High-volume dispensaries, however, may find these fees outpace the cost of running their own team.
No Fleet or Insurance Costs:
Outsourced partners absorb the cost of vehicle maintenance, driver insurance, and security equipment. This removes major overhead burdens and allows dispensaries to scale up quickly during peak seasons like 4/20 or holidays.
Lower Tech Costs:
Most third-party providers supply their own route planning, driver tracking, and compliance tools. Dispensaries typically only pay for integrations, which are minimal compared to in-house systems.
Downsides:
Outsourcing limits control over customer experience, delivery timing, and branding. Some cannabis operators also express concerns about data privacy and the impact of third-party delivery fees on margins.
Which Option Fits Your Dispensary Best?
A low-volume dispensary with inconsistent demand usually saves more by outsourcing. The cost structure is predictable and flexible without requiring a large initial investment. Conversely, dispensaries with a strong brand presence, consistent volume, and long-term delivery goals often gain more profitability by building an in-house logistics system.
The best decision often comes from comparing volume projections and analyzing whether fixed, controllable costs (in-house) or flexible, variable costs (outsourced) provide the greatest long-term advantage. Both models can succeed—but the right choice depends on operational vision and financial discipline.