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With California joining the pot of states legalizing usage of recreational marijuana, many companies inch even closer to offering full online sales and delivery of cannabis. Meanwhile, other services use the web to facilitate marijuana distribution in a different way.

With regards to e-commerce and cannabis, there’s a lot of gray mixed in with the green.

The rapid and quickly spreading legalization of cannabis is leading savvy entrepreneurs to produce services making it far more convenient for shoppers to select from many different strains, make a price comparison and order their indulgences or medicine from your comfort of their couch, as well as for dispensaries to find and get these products they are going to resell.

However, marijuana sales are largely stuck at “almost e-commerce,” says Alan Brochstein, founder of 420 Investor, a subscription-based portal for investors offering data on marijuana companies, and also New Cannabis Ventures, a content aggregation site for that cannabis industry. Which means consumers can order online for pick up with a dispensary or get cannabis delivered then again have to pay cash on the door.

An Amazon-like site for cannabis is a good idea, and it’s not new, but the current federal illegality from the herb helps make the idea difficult to execute, says Brochstein. Each state has different laws surrounding the purchase and utilize of buy real marijuana online. “It’s difficult to scale when you are state by state by state,” he says. “Who opens an e-commerce site only targeting Chicago? It’s very tough.”

It could be a bit herb, but marijuana is a major-and increasingly legal-business inside the U.S. As of 2018, eight states and the District of Columbia have enacted laws legalizing marijuana for recreational use.

Most recently, California joined the pot on Jan. 1. In Massachusetts, retail sales of cannabis are required to start in July, in accordance with Governing.com, a media site covering politics, policy and management for state and native government leaders. Meanwhile, the vast majority of states allow for limited use of medical marijuana under certain circumstances, Governing.com says.

It’s difficult to scale when you find yourself state by state by state. Legal cannabis, hemp and marijuana sales in The United States grew 34% this past year, and they’re slated to develop by around 26% annually through 2021, according to ArcView, an investigation group for your legal marijuana industry. Shelling out for legal cannabis in the Usa will reach $20.8 billion by 2021 and definately will generate $39.6 billion in overall economic impact, 414,000 jobs, and more than $4 billion in tax receipts, ArcView says.

But for now, nearly all that spending by consumers pays for face-to-face, not online. Beyond complex state-by-state regulations, full-on weed e-commerce is additionally stalled because many cannabis retailers will simply accept cash payments. Banks, a few of which are federally insured, don’t want to risk legal woes from your U.S. government, which regulates banking. Cannabis remains illegal under federal law. This makes charge card payments for cannabis rare.

“Federal illegality impacts [online] payment processing,” Brochstein says. “It’s probable that cannabis could remain federally illegal but that Congress could produce a safe harbor for non-cash payments, but there is no symbol of that happening soon. Until there exists a payment solution, we are going to have only almost e-commerce.”

Cannabis-related e-commerce websites are growing inside the Usa, but online sales of marijuana remain unattainable right now. Online purchasing, payment, shipping and delivery in the plant is illegal, however many cannabis dispensaries are setting up order online to enable shoppers to peruse inventory before getting into a store.

Laws vary by state, but eight states and also the District of Columbia have laws that allow for recreational use of marijuana and 29 states in addition to D.C., Puerto Rico and Guam have laws allowing medical marijuana use, according lqcwre the Marijuana Policy Project, a pro-legalization organization.

There is no law that explicitly prohibits online sales, but most states have laws that restrict selling and acquiring to specific licensed locations, says Taylor West, deputy director at the National Cannabis Industry Association. West estimates that almost all its 1,200 members have some form of online presence despite not being able to sell online.

Dispensary Diego Pellicer Washington, for example, lists its location, hours and pricing online, and it also sells cannabis-related products online, including pipes in order to smoke marijuana. Diego Pellicer started selling medical and recreational cannabis in its Seattle dispensary inside the fourth quarter of 2016 and expects to create $ten million in sales in the 1st year of operation, says co-founder Alejandro Canto. The retailer is in front of schedule on meeting that goal, he says. If online cannabis sales were permitted, Canto estimates that its sales could increase 10-35%.