Buy and Sell Cannabis at Wholesale
CannTrade is an “eCommerce” platform for cannabis and CBD-related products.
Its platform combines a marketplace with supply chain management tools, and helps businesses buy and sell cannabis-related products wholesale.
By next year, cannabis sales in North America are projected to surpass $20 billion. According to Grand View Research, by 2025, the U.S. legal marijuana market is expected to reach $66 billion.
As of 2019, 33 U.S. states allow the sale of marijuana for medicinal purposes. 11 states have legalized it for recreational use, and another 15 have decriminalized it.
Simply put, cannabis is one of the fastest-growing industries in the world.
But this industry is still relatively young. A nationwide presence of cannabis wholesalers doesn’t exist yet. This makes it a challenge for buyers and sellers to exchange product, particularly in bulk.
CannTrade solves this challenge. Its platform connects wholesale buyers and sellers of hemp, CBD, cannabis, and related products and equipment.
Buyers can submit supply requests, including the material, amount, and price range. Verified suppliers can respond with a price quote, and the two parties can communicate directly through the platform to complete the purchase.
CannTrade verifies businesses by reviewing operator information, such as Employee Identification Numbers, seller permits, and state IDs.
During the process, buyers can receive status updates and shipping notifications. They can also create a “supply watch” alert, which means they’ll be notified any time new product listings match their criteria.
When a supplier lists items for sale, they can see how many buyers match their product description and initiate contact.
Through the CBD and cannabis marketplaces, members can buy and sell cannabis concentrate, loose cannabis, edibles, topicals, and tinctures. Through the industry marketplace, items available include cannabis packaging, delivery systems, cultivation tools, processing equipment, and apparel.
In addition to the marketplace, CannTrade provides businesses with key management tools. These include:
• Wholesale Menu and Storefront: Suppliers can accept orders from their “menu” that can be linked or embedded on websites or sent out in e-mails or text messages.
• Sales Reporting: Companies can track sales metrics such as total sales, sales by product, sales by representatives, and generate customizable reports.
• Order Management: Businesses can automate purchase orders and invoices. They can then track and share the order processing and delivery status with clients in real-time.
• Client Management: Companies can assign a staff member to specific customer accounts to track orders and respond to service-related issues.
• Shipping Integration: Businesses can set up shipping options specific to each product and order shipping labels form UPS, USPS, and FedEx directly from the platform.
• Merchant Processing: Members can process credit card transactions through the platform.
• Network Mapping: Businesses can search for new clients geographically to find up-and-coming cannabis markets.
CannTrade offers two different pricing options for members:
The first is a variable percentage-based service fee on all transactions. This fee can be as much as 2.9%.
The second is a subscription-based model. Businesses can pay a monthly or annual fee to buy/sell products. The basic fee for suppliers is $99 per month or $990 per year. Premium suppliers can pay $199 per month or $1,990 per year. Premium accounts enable businesses to create a more detailed profile on the platform and to engage with potential buyers on an unlimited basis.
CannTrade started in 2016, and soon after launched a “beta” platform. 1,300 businesses registered on its platform and, in January 2020, the company launched its full-feature platform.
CannTrade brought in roughly $100,000 in revenue in 2019.
With funds raised, CannTrade will scale operations, hire additional staff, and increase its marketing budget. Additional features planned for 2020 include:
• Integrated Wire Payments: Wire payments and escrow services will enable members to complete high-value transactions.
• CannTrade Live: This will enable clients to view lab testing results of cannabis product, enhancing the platform’s credibility of providing quality products.
• Integrations with Compatible Systems: CannTrade’s platform will integrate with accounting software and analytics platforms.
Longer-term, CannTrade aims to develop a mobile version of its platform.
Before starting CannTrade, Jonathan was co-founder & CEO of Trimpakt, a company creating software solutions for the cannabis industry.
Prior to that, he was President of Plant 2 Products, a non-profit creating plant-based treatments for healthcare patients in California.
Earlier in his career, Jonathan played professional football in the National Football League and Canadian Football League.
He earned a Bachelor’s degree in Agricultural Business from California Polytechnic State University.
Brian brings an extensive software background to CannTrade.
Most recently, he was CEO of WODTogether, a software platform that helps fitness gyms run efficiently. He held this position for eight years.
Prior to that, he spent seven years as a senior software engineer with McAfee, after it acquired his previous employer, Foundstone, a security services company.
Brian began his career as a web developer for Compurex Systems, a company that sold computer hardware parts.
Andrew began his career with QVidian, a software company, where he built a customer relationship management product.
He then moved on to Digital Results Group, a Boston-based software company. Here, he was a lead developer of Ageon ISR, a software product that collects intelligence data from cameras and RADAR detectors. This software is used by the U.S. Army and Navy.
Andrew earned a Bachelor’s degree in Computer Science from Stonehill College.
Prior to CannTrade, Adam was a high school English teacher in New York City.
Before that, he was Senior Deployment Manager for Foundstone, the security company acquired by McAfee. While there, Adam managed operational logistics and led the manufacturing efforts of a project for the U.S. Department of Justice.
He earned a Bachelor’s degree in English from the University of Massachusetts and a Master’s in Education from Pace University.