The sale of ammunition, like all other products related to the firearms sector, is not for the faint of heart.
In order for you to succeed in building a profitable store that truly educates and serves the needs of your customers, it is vital that you carefully lay down a foundation that will support your growing gun and ammunition shop.
Become a state legal expert
Start by taking a long look at the laws in the states where you plan to sell your products. As statutes vary widely, it is important to do your research into the specific requirements of each jurisdiction you want to serve.
There may also be additional reporting requirements that you must follow in order to sell ammo.
Some states demand, for instance, that you report your sales to a particular department on a regular basis. To remain on top of the host of evolving state regulations that apply to your ammo sales, you may want to hire an attorney whom you can consult if questions arise.
Get an FFL
You will need a Federal Firearms License certificate (FFL) in order to sell ammunition in your store or online. This is for your protection as well as that of your customers.
Simply apply for an FFL by completing the form and providing all requested documents. Once a background check has been completed and all paperwork reviewed to the government’s satisfaction, you will receive your FFL certificate.
Understand other federal regulations
Since you already sell firearms, you know about the prohibited purchaser categories. The same ones that govern firearms purchases also apply to ammo.
It is also similarly true of minimum age requirements, which can be anywhere between 18 and 22 depending on the state. If you import or manufacture ammunition, you will need a license from the attorney general, while simply selling, purchasing or possessing ammo does not.
Finally, your business must follow all laws that restrict armor-piercing ammunition. Consult with your attorney to ensure you are in compliance.
Set up your website
If you are going to sell ammo online, you will need an ecommerce platform, specifically one that is friendly to high-risk businesses such as yours.
Fully inform the one you choose about the nature of your business before you sign any contracts so that you can avoid being banned later.
Finally, be sure the platform you select integrates with third-party shopping cart plugins, a payment gateway and recurring billing and accepts multiple payment options.
Find viable shipping and fulfilling solutions
Getting your ammo sent to your customers means navigating regulations and restrictions. Although ammo cannot be mailed through the U.S. Postal Service, it is accepted by UPS and FedEx with appropriate labeling.
You might also partner with other firearms dealers so that the customer picks up the ammo from their store.
Encrypt data with SSL
Customer data needs to be protected, particularly in the firearms industry. To that end, purchase a secure socket layer, and have it installed before you launch your ammo sales.
Create documentation
It is crucial that you write a thorough privacy policy and terms and conditions document.
This clearly outlines what customers can expect when doing business with you, and it protects you should disputes arise in the future.
Find a processor
In order to take credit and debit card payments, you need payment processing for firearms stores. Partnering with one of these entities enables you to securely take all types of payments because they have worked to establish relationships with gun-friendly banks and other payment providers.
They will help you to set up your payment gateway so that you can begin taking payments for ammo purchases right away.
Keep in mind that although the services provided by high-risk processors are essential to firearms and ammunition dealers like you, they do come at a price. Expect to pay additional per-transaction fees as well as to be subjected to higher monthly costs and added contractual obligations.
You may even be required to open a reserve account that protects the provider in case you cannot make your payments for any reason.
Once you fully understand your legal obligations, set up your website and shipping solutions and choose a high risk merchant account provider, you will have laid the groundwork for your ammunition sales store.
Build on these with a focus on the needs and education of your customers while never forgetting your regulatory compliance obligations. If you can achieve all of these important goals, your chances of success in this volatile yet lucrative industry are high.