Oversupply in the cannabis industry has fueled the infamous “race to the bottom,” pushing prices lower and squeezing margins for operators nationwide. Too many cannabis businesses focus on sheer output and overlook a key business practice: selling through inventory at a healthy margin.

Because cannabis is a regulated product with strict expiration dates, operators must not only produce efficiently but also turn product quickly. The reality is that many overproduce which forces them to slash prices just to get product onto shelves. This cycle of oversupply and discounting has accelerated falling wholesale prices across the U.S. According to Cannabis Benchmarks, the weighted average price for a pound of cannabis dropped from $1,328 in August 2019 to just $1,093 in August 2025—a 17.7% decrease—while inflation rose by 26.36% in the same period.

Tariffs don’t politely knock before entering. They crash in, double your shipment costs, and leave your bank account gasping while your ERP scrambles to explain what just happened. For cannabis businesses already balancing compliance, thin margins, and volatile vendors, it’s one more curveball in an industry that never seems to throw straight pitches. The good news? With the right mix of ERP and E-Commerce, you don’t just absorb the hit — you get the tools to anticipate, adapt, and come out stronger.

Scaling E-Commerce in logistics and compliance-heavy industries isn’t just hard, it’s regulated. We unpack how to systemize and automate scale, safely.