The Complete Guide to Dropshipping Firearms 2024

Introduction to Firearm Dropshipping

The firearm industry is a lucrative market, with a projected market size of $9.33 billion in 2027, supported by impressive statistics¹:

• Economic Impact: In 2022, the U.S. firearm and ammunition industry’s economic impact surged to $80.73 billion, representing a 322% rise from $19.1 billion in 2008.
• Employment: The industry saw a 136% increase in full-time equivalent jobs, rising from 166,000 to 393,696 in the same period.²
• Gun Ownership: Around 45% of U.S. households possess at least one firearm.
• Industry Value: The U.S. firearm industry’s total worth stands at approximately $28 billion, with an annual production of 7 to 9 million guns domestically.

This rapidly growing market presents an enticing opportunity for dropshipping, but it’s essential to understand the nuances of firearm dropshipping before diving in.

Unlike conventional dropshipping products, firearms are subject to stringent regulations and unique logistical challenges, all arising from the need to comply with law and strict shipping restrictions.

Additionally, marketing firearms online also demands a strategic approach, as it requires navigating sensitive consumer perceptions and adhering to industry-specific advertising guidelines.

To effectively navigate these complexities, understanding the roles of the various players involved in the firearm dropshipping ecosystem is crucial.

Key Players in the Firearm Dropshipping Market

Firearm Manufacturers: These are companies such as Smith & Wesson, Remington, and Glock that produce firearms. Manufacturers typically hold a Type 07 FFL, which permits the manufacturing of firearms for sale and the production of ammunition.

Wholesalers/Distributors: Entities like RSR Group and Sports South buy firearms in bulk from manufacturers and then distribute them to retailers or dropshipping resellers. They usually operate with a Type 01 FFL, intended for dealers in firearms other than destructive devices.

Dropshipping Resellers: These are companies or businesses that dropship firearms and its accessories. The specific FFL type for dropshipping resellers isn’t explicitly defined, but as they are involved in selling firearms, a Type 01 FFL, meant for dealers, is likely required.

Firearm Retailers: These can be online or brick-and-mortar stores that sell firearms directly to the public. Some may use dropshipping to manage inventory and shipping. The FFL requirement for retailers usually is Type 01 FFL.

Below, you’ll find a table detailing the types of FFL licenses required.

Type of FFL License Required:

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In-demand Firearms and Accessories for Dropshipping

As a firearm dropshipper, focus on high-demand, low-competition firearm parts. Particularly, look into parts for popular models where demand outstrips supply.

Below is a link containing popular Firearm models and the high-demand accessories associated with them.

Popular Firearms: In-demand Firearms and Accessories for Dropshipping

Reliable Firearms Suppliers for Dropshippers

Starting a Firearms online store involves several critical considerations, particularly when selecting suppliers.

Here are specific tips to help:

Quality Control and Manufacturing Standards: Investigate the manufacturing processes and quality control measures. Look for compliant with standards like ISO 9001, , ITAR and DoD³ which indicates a standardized quality management system.

Product Range & Availability: Choose suppliers with a wide array of firearms, including sought-after models. Ensure they maintain stock and quickly replenish it to meet customer needs efficiently.

Integration Capabilities: Opt for suppliers using automation technology for streamlined ordering, inventory tracking, and data sharing. Prioritize those providing real-time inventory updates for better operational planning and customer communication.

Here’s a list of Firearms dropshipping suppliers with their important details:

Click here to Download a full list of Firearms Suppliers for Dropshipping.

(Disclaimer – while every effort has been made to provide accurate information, the responsibility for verifying the information lies solely with you. Do interact with the suppliers/distributors before taking any decisions)

Setting Up Your Online Firearms Store

eCommerce platforms like Shopify and WordPress have strict policies restricting the sale of Firearms, Firearm components, accessories, and ammunition on their hosted platforms.

These restrictions pose challenges for Firearm dropshippers, prompting them to explore specialized, Firearms-friendly e-commerce platforms.

Notably, options such as BigCommerce or Open-source e-commerce solutions can streamline the process of setting up an e-commerce platform for Firearms.

BigCommerce

Choosing BigCommerce for a Firearm online store is advantageous for several reasons:

Staying Neutral and Compliant

BigCommerce takes a unique approach in the eCommerce industry, especially when dealing with high-risk products like Firearms. They act as a capable technology partner for you.

Their focus is on offering a platform that enables eCommerce businesses to operate within the boundaries of the law.

Payment Gateway Solutions

One significant challenge for Firearm eCommerce is finding payment processors willing to support these transactions, given the complexities of shipping firearms to federally licensed firearms (FFL) dealers for background checks.

However, BigCommerce steps in to address this concern. They provide integration with FFL and firearm-friendly payment gateways, along with second amendment-friendly payment processors.

Automatic FFL Integrations

BigCommerce’s integration with the FFL automation solutions is a key asset. This simplifies the process for customers by helping them choose FFL locations for product shipments, enhancing the overall user experience while ensuring strict compliance with federal regulations.

Flexibility and Customization

Unlike more complex and expensive platforms like Adobe Commerce/Magento, which might not be ideal for Firearm businesses, BigCommerce offers a user-friendly interface and robust customization options.

This makes it an excellent choice for Firearm stores looking for flexibility and ease of use.

Open Source eCommerce Platform
Opting for an open-source platform to build an online Firearm store offers several benefits not typically provided by hosted eCommerce platforms.

1. Customizability: Open-source platforms offer extensive customization options, allowing for unique, tailored storefronts and backend functionalities to ensure compliance with diverse and evolving regulations.

2. Flexibility: You have more control over integrating specific features, compliance tools, and payment gateways that are firearm-friendly.

3. Community Support: Open-source platforms often have large communities offering support, plugins, and updates.

4. Ownership and Control: Full ownership of the site with no reliance on a third-party service’s terms and policies, which is crucial for a sensitive product category like firearms.

Challenges with Open Source Platforms for Firearms Dropshipping

While the benefits are significant, there are challenges that Firearm dropshipper may encounter:

Primarily, the need for technical expertise stands out: building, customizing, and maintaining an open-source site requires a higher degree of technical skill than using a platform like BigCommerce.

You’ll also face ongoing security concerns; open-source platforms require regular updates and security patches, which you must manage yourself.

Additionally, integrating third-party services, such as payment gateways and compliance tools, can be complex and requires careful configuration to ensure they work seamlessly with your site.

Finally, while open-source platforms can be cost-effective initially but the need for specialized development and maintenance can lead to higher long-term costs.

Navigating Payment Gateways for Firearms Sales

PayPal, along with other payment platforms like Venmo, Square, Stripe, and Zelle, prohibits transactions involving firearms, ammunition, or certain firearm parts due to the intricate legal and regulatory landscape governing Firearms.

This makes licensed Firearms dealers, especially resellers, to seek specialized alternatives like Guntab, Authorize.Net and others.

Here’s a list of firearm-friendly payment processors with important details like transaction fees, integration capabilities, and regulations and compliances.

(Disclaimer – while every effort has been made to provide accurate information, the responsibility for verifying the information lies solely with you. Do interact with the service providers before taking any decisions)

Tips for Navigating Payment Systems

When selecting a payment processor for your FFL firearm online store, focus on these three critical aspects:

Compliance and Industry Specialization: Choose a processor that specializes in high-risk industries and complies with firearms regulations. They should facilitate background checks, age verification, and adhere to both Federal and state Firearms laws.

Integration and Technology Compatibility: Ensure the processor integrates seamlessly with your ecommerce platform and provides necessary technical features like fraud prevention, high-security standards, and support for various payment methods.

Fee Structure and Financial Viability: Analyze the fee structure, considering transaction fees, monthly fees, and chargeback costs. Opt for a processor offering transparent pricing that aligns with your business model and sales volume.

Selling Firearms on GunBroker: Guidelines and Best Practices

GunBroker, the world’s largest online firearms auction platform, caters to both novice and experienced resellers due to its extensive user base and unique auction format.

To sell firearms on GunBroker, you need to:

1. Set Up an Account: First, create your account on GunBroker.com with your company details.⁴

2. Comply with Legalities: Make sure you have all required legal documents and licenses for selling Firearms.

3. Detail Your Firearm: List your Firearms with thorough information about its condition, features, and photos.

4. Seller Registration: Register yourself as a seller on the site.

5. Understand the Fees: Be aware that GunBroker imposes fees for listing and a final value fee based on the sale price.

6. Create Your Listing: Write detailed descriptions of your item, including its category, title, specific characteristics like caliber and manufacturer, and details about payment and shipping.

7. Choose Listing Format and Price: Decide on your auction’s duration (between 1 and 14 days) or a fixed price duration (30, 60, or 90 days), set the pricing, and consider using optional services for enhanced visibility.

8. Upload Photos: You can upload a maximum of 10 pictures initially, with the option to add more later.

9. Preview and Submit Your Listing: Review all the details before submitting. Note that most details can’t be changed after receiving a bid.

10. Track Your Listing: Monitor your listing’s progress and activity through your GunBroker account.

Shipping policy:

FFL Holder Requirement: Firearms must be shipped ⁵to a valid Federal Firearms License (FFL) holder by Federal law.

Shipping Profile Creation: GunBroker supports creating shipping profiles ⁶based on product weight, initial item, and sale price, with adherence to size, weight, and hazardous materials regulations.

Payment Options:

1. OutdoorPay Gateway: OutdoorPay ⁷is set to become the exclusive payment gateway on GunBroker.com, facilitating all transactions on the site. Purchases will be processed through this gateway.

2. Current Preferred Methods: Presently, GunBroker favors two payment methods: credit cards (via Immediate Checkout) and USPS money orders,⁸ though it accepts some others like GunTab. Notably, it prohibits various other payment platforms.

For a deeper dive into the nuances of selling on GunBroker, including detailed steps and tips for successful sales, visit our comprehensive blog post.

Scaling with FFL Automation

To successfully navigate the complexities of State-specific firearm regulations while operating an online Firearm store, it’s crucial to adopt a scalable approach. In this context, FFL automation tools go beyond mere convenience; they become a strategic necessity.

These advanced automation tools adeptly manage the intricacies of State and Federal laws, enabling your business to efficiently hold or split orders as per the legal requirements of each State’s unique regulations. They also automatically identify FFL and non-FFL items.

This functionality is critical in mitigating legal risks and ensuring seamless operational compliance.

Integration with Firearm Suppliers: As your online presence grows and traffic surges, scaling your inventory becomes imperative. Here, the integration capabilities of dropshipping automation platforms are particularly advantageous.

They provide a direct channel to an array of reliable Firearm suppliers, enabling the effortless expansion of your product offerings on your ecommerce platform like BigCommerce without the logistical burdens of traditional inventory management.

Market Expansion and Diversification: In an ever-expanding digital marketplace, diversification is key. These platforms offer robust integration with prominent Firearm marketplaces like GunBroker, broadening your sales horizon.

This strategic expansion not only taps into a wider customer base but also fortifies your market presence, catalyzing sustainable business growth in a competitive digital ecosystem.

Legal Considerations in Firearms Dropshipping

Licensing Requirements⁹: Selling firearms without a license can result in penalties including fines up to $250,000, imprisonment for up to 5 years, or both. To apply for a license, you need to visit the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) website.

Dropshipping Process¹⁰: If the dropshipper is in the US, they need to ship to a FFL Dealer in the buyer’s home state. If the dropshipper is not in the US., a license is required by the importer of firearms. Direct shipping to a dealer or purchaser from outside the US is prohibited unless they have the necessary license.

Shipping Regulations¹¹: Firearms must be completely unloaded before shipment, and ammunition cannot be included in the same shipment as a gun, as per federal law. The gun should be packaged in a clean, sturdy cardboard box or a hard case with adequate padding. Handguns are not mailable and must be shipped by a common or contract carrier.

Carrier Restrictions¹²: Shipping carriers like UPS and FedEx have specific rules about shipping firearms. Only licensed individuals and government agencies can use these services for shipping firearms. Non-Licensees¹³ are prohibited from shipping firearms with FedEx.

Packaging and Labeling¹⁴: Firearms must be shipped in a hard-sided, foam-padded case without any markings indicating that there’s a Firearm inside the package, as per Federal law.

State and Federal Law Compliance¹⁵: Modern firearms should generally be shipped to an FFL. However, there are exceptions when shipping from one non-licensee to another within the same state. It’s important to be aware of State laws, as some require all transfers to go through an FFL licensee.

Record keeping for Drop Shipments¹⁶: The ATF sets forth recordkeeping procedures for drop shipments of firearms and ammunition between federally licensed firearms dealers, importers, and manufacturers. This excludes National Firearms Act Firearms.

For more detailed information on Federal laws and State-specific regulations, you can refer to the Bureau of Alcohol, Tobacco, Firearms and Explosives website (ATF) and State government websites.

Advanced Marketing Strategies for DropShipping Firearms

1. Gunfluencers

Influencer marketing is a powerful tool, with 49% of consumers globally relying on influencer recommendations for their purchases. In the firearms industry, figures like Greg Kinman, known as “hickok45” with over 7.5 million subscribers, provide substantial brand exposure.

Engaging top-tier influencers can be costly, often charging millions per video. However, for budget-conscious brands, micro-influencers, despite having fewer followers, offer higher engagement rates and a cost-effective alternative. They provide a more targeted approach and can yield better returns on investment.

Additionally, podcasts are gaining popularity, with 55% of Americans having listened to one. In the firearms sector, podcasts like NSSF’s “The Gun Industry Speaks” educate and inform listeners about industry insights, covering topics from gun safety to legislation.

Leveraging such podcasts can help Firearms brands and retailers both educate listeners about the industry and suitably promote their products.

2. Leveraging Independent Media Houses

With big tech companies restricting the promotion of firearm-related businesses, firearm dropshippers need to think outside the box. One promising avenue is collaborating with independent media houses that specialize in firearms content.

Here’s how you can make the most of this opportunity:

Identify the Right Independent Media Houses:

Before diving into collaboration, research and identify independent media houses in the USA that have a significant readership interested in firearms.

Some notable names include:

• Shooting Illustrated
• Guns & Ammo
• Firearms News
• Ballistic Magazine
• The Firearm blog

3. Collaborative Partnerships:

While guest posting on their platforms is one option, you can also propose co-branded content or sponsored articles that subtly promote your firearm dropshipping brand.

Establish a mutually beneficial relationship where you can provide valuable insights and content to their audience while gaining exposure for your business.

4. Educational Video Reviews and Guides:

To position your dropshipping store as a trusted source for Firearm information, consider creating a series of in-depth video reviews and guides. These videos should showcase various firearms, their features, usage, and safety measures in an educational manner.

Note: Ensure that your marketing efforts align with all relevant regulations and ethical guidelines. Transparency and responsible firearm handling should always be at the forefront of your content.

Conclusion

In conclusion, success in Firearm dropshipping depends on your ability to innovate within a regulated market and stay compliant. Leverage technology to streamline operations and legal compliance, focus on niche products to differentiate your offerings, and constantly update your strategies based on evolving legal landscapes and market trends.

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