Product Returns a Big Issue for Big Canna
Whether due to slow sales, quality issues, or customer complaints, the big cannabis companies are being faced with millions of dollars in returns each quarter. As explained in a post on CTVNews, Canada’s Canopy Growth Corp., for example, was forced to eat almost $27 million in returns in the third quarter of last year.
Canopy’s VP of Communications, Jordan Sinclair, chalks their nearly $27 million write-down on returns in a single quarter up, primarily, to a learning curve. As quoted in the article, Sinclair says, “This is a new market and we are still learning about customer preferences…”
Some predict that the returns issue will only get worse as new products are introduced, causing an over-supply of previously-introduced products. Additionally, recalls of product, like the one that occurred when CannTrust Holdings Inc. was forced to call back millions of dollars in cannabis product due to the weed being grown in unlicensed greenhouse rooms, add to the problem.