Inside The Amazon Of Weed, Helping 400 Cannabis Brands Save And Grow In Regulatory Maze

Nabis is reshaping cannabis logistics with an approach that rivals Amazon's operational scale, serving over 400 brands and ensuring thousands of daily deliveries across California and Nevada. 

The company's five large warehouses and a fleet of over 100 trucks enable seamless pick-and-pack operations, allowing cannabis brands to focus on growth rather than the complexities of distribution. 

"We are designed to remove the red tape and simplify the entire process for our clients," Sean Arroyo, President of Nabis told Benzinga Cannabis in an exclusive interview. By streamlining logistics, Nabis offers its partners the ability to reduce overhead, speed up delivery times, and navigate the regulatory maze, making it a vital player in the fragmented cannabis industry.

"Cannabis logistics is the backbone of the industry, and Nabis' focus is on making it simple for brands," Arroyo mentioned. 

Like Amazon, But For Cannabis Brands  

Nabis is often compared to Amazon for its logistics-first approach, seamlessly handling everything from pick-and-pack to same-day shipping through its expansive network.

Operating out of five massive warehouses—each designed to function like Amazon's fulfillment centers—Nabis coordinates the movement of cannabis products with precision. 

"We're like an Amazon shipping center. You'll see rows of products being picked, packed, and shipped out daily," Arroyo explains. The scale is impressive, with over 100 trucks on the road, ensuring that cannabis products reach dispensaries in the shortest time possible.

Cannabis brands using the Nabis platform can track sales, manage inventory, and adjust shipments on the fly—giving them unparalleled control over their operations. "Technology is key to scaling in this industry. Without it, you're left behind," Arroyo added.

Cannabis brands can drop off their shipments at Nabi’s warehouses, where they are broken down into individual orders, re-boxed, and shipped to retailers with Amazon-like efficiency. 

"We handle the complexities so brands can focus on growing their business, not worrying about logistics," Arroyo says. By providing these seamless, tech-driven solutions, Nabis helps cannabis brands reduce costs and focus on their core operations.

Thin Margins

While logistics is the most visible part of the operation, managing costs is equally critical. "Logistics, warehousing, gas, and personnel are major cost centers, but we aim to offer competitive pricing without compromising service quality," Arroyo noted. 

Nabis' technology investments are substantial, but Arroyo sees this as necessary for long-term growth. He highlighted the company's focus on thin margins: "Like Amazon, we operate with tight margins to ensure our partners get the best value. Our goal is not to charge excessive margins, but to enable brands to thrive."

Cold Storage And Compliance Complexity

In addition to mastering logistics, Nabis faces unique challenges specific to cannabis products. Many require temperature-controlled environments, particularly sensitive items like edibles and extracts. "A lot of this has to be temperature controlled," says Arroyo, pointing to the specialized infrastructure within Nabis’ warehouses designed to keep products fresh and safe during transit.

Another critical aspect of their operations is navigating the complex web of regulations that vary from state to state.

“Cannabis logistics are highly fragmented due to differing state laws,” Arroyo noted. Nabis ensures full compliance with local laws, managing everything from security protocols to background checks, and licensing requirements.

Data And AI: The Future Of Cannabis Distribution

Nabis is sitting on a wealth of data that has the potential to transform the industry. "Data is a huge part of everything we do. We're currently investing in AI to provide real-time analytics to our brands and retailers," Arroyo said. 

Nabis' long-term goal is to make data accessible for brands to track their sales and plan for future demand. "We believe in democratizing our data. The more our partners grow, the more we grow. It's a win-win."

Market Growth

California remains the most competitive market, with Nabis holding over 20% of the market share. "California is tough, but we've managed to thrive by offering best-in-class services," Arroyo said. 

Looking ahead, Nabis is focused on East Coast markets like New York and possibly Florida, pending regulatory outcomes. 

Nabis also strategically chooses markets based on various factors. "We look at 50 different components when evaluating a new market, including regulations, purchasing power, and supplier ecosystem health. We are excited about New York's potential, but our expansion plans always depend on how the regulatory landscape evolves," he noted.