Clear the Path: How Ohio Retailers Can Team Up With Cannabis Distributors

Understand the Regulatory Landscape

Ohio’s adult-use (recreational) cannabis market launched in November 2023, with first retail sales beginning in August 2024. Distributors in Ohio operate under licenses granted to cultivators and processors, who are permitted to deliver products directly to licensed dispensaries. There is no standalone “distribution license” as seen in other states.

Ensure Your Retailer Licensing Is Rock Solid

Retailers must hold an active adult-use or dual-use dispensary license along with a Certificate of Operation from the Ohio Division of Cannabis Control. This includes complying with operational requirements such as SOPs, staffing credentials, and facility security.

Get Metrc & Operational Systems Flowing

Ohio uses Metrc as its statewide cannabis tracking system. To maintain compliance and streamline inventory flow, retailers should integrate Metrc with their POS and inventory platforms to track manifests, product movement, and audits in real time.

Research & Evaluate Potential Distributor Partners

Focus on licensed cultivators and processors with a solid reputation. You can use Ohio’s eLicense lookup tools, join local trade groups, or attend networking events and expos to find trustworthy partners with compliant delivery practices and strong product quality.

Schedule Facility Tours & Sample Packages

Invite potential partners to visit your dispensary and demonstrate your SOPs and operational integrity. Request product samples and documentation to evaluate quality, potency, packaging, and regulatory compliance.

Negotiate Terms & Logistics

Before onboarding a distributor, confirm contract details such as pricing, delivery schedules, minimum order requirements, invoicing timelines, and procedures for handling returns or recalls. Ensure transportation meets Ohio’s security and regulatory standards.

Formalize & Onboard

Once the terms are locked in, sign a distribution agreement and add your new partner to your inventory system. Train staff on procedures for verifying shipments, documenting receipts, and updating Metrc records.

Maintain Ongoing Compliance & Relationship

Regular audits, product reviews, and open communication help retailers stay in compliance and build lasting relationships. As your dispensary grows, a responsive distributor can help you scale inventory and introduce new products efficiently.

Summary of Core Steps

  • Obtain and maintain an active dispensary license and Certificate of Operation
  • Implement Metrc seed-to-sale tracking and integrate with POS/inventory systems
  • Research and vet licensed cultivators and processors who offer distribution
  • Tour potential partners’ facilities and evaluate sample product quality
  • Negotiate contracts covering pricing, delivery frequency, and service terms
  • Sign agreements and train staff to onboard the distributor properly
  • Monitor delivery accuracy, inventory tracking, and Metrc compliance
  • Build a professional relationship with clear communication and shared goals