Hemp-derived CBD oil will likely remain legal in Wisconsin for the foreseeable future. Cannabidiol, or CBD oil, is increasingly available in stores across the state of Wisconsin. Under federal law, CBD oil is an industrial hemp product, and it is legal to possess and distribute. However, because CBD oil contains a detectable quantity of tetrahydrocannabinol or THC, it is still illegal to possess in Wisconsin unless you have a certification from a physician pursuant to Wisconsin statute 961.32(2m)(b).
Possession of CBD oil without a certification could be prosecuted as a misdemeanor criminal offense. Delivery or supplying of CBD oil to individuals who do not have a certification could be prosecuted as a felony offense. Because cannabidiol’s legal status conflicts with Wisconsin’s industrial hemp law. As a result, the Wisconsin Attorney General has advised Wisconsin law enforcement not to enforce the law as written. Still, because it is illegal in Wisconsin, it is advised that if you use or distribute CBD oil that you have (or your customers have) a clinician’s certification or prescription to avoid possible criminal charges. The Truth About Dropshipping: The Good, The Bad, and The Ugly.
The Truth About Dropshipping: The Good, The Bad, and The Ugly. Download a PDF version of our dropshipping article for easier offline reading and sharing with coworkers. Dropshipping is an order fulfillment method that does not require a business to keep products in stock. Instead, the store sells the product, and passes on the sales order to a third-party supplier, who then ships the order to the customer. However, contrary to popular belief, dropshipping is not a get-rich-quick scheme. Sure, it seems like easy money — you sell other people’s goods and take a cut for yourself — but when you factor in all the drawbacks, obstacles, and day-to-day management, it’s far from easy. However, if you approach it the right way, and use the proven strategies below, dropshipping can still help you build a successful business…just not as quickly as you’d hoped. Let’s put it this way: if you’re only doing dropshipping, it’ll be difficult to get your business off the ground; but, if you’re already established in ecommerce, you can use dropshipping to complement your existing services and improve your business. In this guide, we walk through all the problems with dropshipping that aren’t as publicized as its perks. But despite its flaws, dropshipping can still be a powerful tool for ecommerce brands, as long as it’s used properly. We’ll also explain the ways to do dropshipping right, and showcase some company case studies to illustrate what we’re talking about. If you’re a beginner to dropshipping, you may want to check out the FAQs at the bottom before reading the bulk of this guide. We stray into some advanced topics, so it’s better to have some background. 5 Hard Truths About Dropshipping No One Talks About. Before you put all your savings into a new dropshipping business… don’t! It’s difficult to maintain a business doing dropshipping alone, let alone start one from scratch. Sure, since you don’t have to manage or store your own inventory, the overhead is low — but so are the returns. That means you have to do a lot of business just to stay afloat, let alone turn a profit. Think about it this way: every sale you make, most of that money goes to the supplier. That’s hardly enough to cover your expenses for marketing/advertising, maintaining your site, managing sales orders, and covering your office hours. According to Fit Small Business, you can predict your income using these variables (they’re averages, so they’ll change depending on your industry and situation): You can then calculate a working estimate using this equation: (Traffic x 0.02) x (Avg order value x 0.2) = Profit. While this is fine for a quick starting estimate, there are a few problems you also have to consider: Chances are, your discount on buying from manufacturers and wholesalers will be less than 20%. This doesn’t account for any of the additional expenses mentioned above that you have to pay from your end. For most products, you’ll have to cut into your profits to keep your sales prices competitive. If you stubbornly hold on to your 20% margin, other companies will easily undercut you.
On top of that, you’ll notice that your profit is also largely determined by your traffic, so if you’re building an ecommerce brand from scratch, you’ll be struggling for a long time as you build a client base. Plus, according to Adam Enfroy from BigCommerce, dropshipping is a lot of work no matter how you dice it. Although it seems hands off, dropshippers always have to deal with their wholesale suppliers, order processing, returns, and customer service. It’s much more reasonable to approach dropshipping when you already have a regular source of traffic. There will always be overly optimistic entrepreneurs who focus solely on the “low overhead” part, ignoring the clear evidence above. Because very little capital is required to start a dropshipping business, that low barrier to entry means a lot of competition, with the most popular markets suffering more than others. Basically, the bigger a company is, the more they can reduce their markups to offer the lowest prices. Reiterating what we said above, smaller businesses have to cut into their profits just to stay competitive with their prices, and at a certain point, it becomes unsustainable. To make matters worse, chances are you don’t have an exclusive deal with your suppliers.
That means any number of competitors could be selling your exact same products. And if you’re just starting out, your rivals with years of experience have the resources you don’t to undercut your prices.