The U.S. gun and ammunition manufacturing industry is projected to be worth $15.8 billion in 2024. For entrepreneurs and business owners, this presents a massive opportunity. But while selling guns online is fully legal, it's also highly regulated.
In this comprehensive guide, we'll break down everything you need to know to navigate the complex web of laws, requirements, and restrictions for running a successful online gun shop. We'll cover everything from understanding legal requirements to choosing the right e-commerce platform.
So let's explore how you can stake your claim in the booming online gun market.
Understanding the Legal Landscape
Before you start selling a single gun online, it's crucial to understand the legal landscape. Failing to comply with laws and regulations can lead to serious consequences, including criminal charges. Here's what you need to know.
Getting Your Federal Firearms License (FFL)
To legally sell guns as a business, whether online or in-store, you must have a Federal Firearms License (FFL). An FFL is a permit issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that authorizes you to engage in the business of dealing firearms.
There are several types of FFLs, but most online retailers need a Type 01 dealer's license. To get an FFL, you must:
Be at least 21 years old
Have a business premises (this can be your home in some cases)
Pass a background check
Submit an application (ATF Form 7) and fingerprint cards
Pay the application fee (usually $200 for initial applications)
The ATF typically processes applications within 60 days. Once approved, your FFL must be renewed every three years.
Following State and Local Laws
In addition to federal licensing requirements, you must also comply with the gun laws in your state and each jurisdiction you sell to. These laws can vary widely and cover aspects like:
Age restrictions
Waiting periods
Mandatory background checks
Restrictions on certain types of firearms and accessories
Prohibited buyers: It's illegal to sell to certain individuals, such as convicted felons and people with certain mental health histories
State-specific regulations: For instance, some states have bans or restrictions on high-capacity magazines
Shipping Guns Legally
When you sell a gun online, you won't be able to ship it directly to your customer. Instead, you must ship the firearm to a local licensed firearms dealer, typically a brick-and-mortar gun store, in the buyer's state. This FFL acts as the intermediary and conducts the necessary background check before transferring the gun to the customer.
Some key shipping requirements to be aware of:
You must use a private shipping carrier like UPS or FedEx (USPS generally prohibits shipping firearms)
Guns must be shipped overnight with an adult signature required
Firearms must be shipped separately from ammunition
The package should be discreet, without any markers indicating it contains a gun
Many e-commerce platforms integrated FFL finders that allow customers to search for and select an FFL in their area during checkout. Alternatively, you can have the customer arrange a transfer with their chosen FFL and provide you with the dealer's license information.
Note that due to the higher risk level of gun sales, you may face higher fees and more stringent underwriting requirements than other businesses.
Laying the Groundwork for Your Online Gun Business
With a solid grasp of the legal essentials, you can start laying the groundwork for your online gun business. This involves several key foundational steps.
Choosing Your Business Name
Your business name is often the first interaction potential customers will have with your brand, so it's important to choose wisely. A good name should be:
Memorable: Something that sticks in people's minds
Clear: Reflective of what you sell (e.g., include words like "firearms" or "guns")
Available: Not already in use by another business, especially in your state
Once you have a name in mind, check its availability. You'll want to ensure the domain name is also available for your future website.
Selecting Your Business Structure
Next up is deciding on your business structure. The most common options for online gun retailers are:
Sole Proprietorship: The simplest structure, where the business is unincorporated and run by an individual
LLC (Limited Liability Company): Offers personal asset protection and tax flexibility
Corporation: A separate legal entity owned by shareholders, with rigid operational requirements
The right choice depends on your business size, growth plans, tax needs, and risk tolerance. It's wise to consult a business attorney or accountant to determine the optimal structure for your unique situation.
Creating Your Business Plan
With your name and structure in place, it's time to develop your business plan. This is your roadmap for launching and growing your online gun store. A thorough plan should include:
Your business model (e.g., reseller, gunsmith, etc.)
Financial projections and budgets
Supplier and inventory management strategy
Shipping and fulfillment processes
Marketing and customer acquisition plans
Meeting Legal Requirements
Before opening your virtual doors, you must ensure your business is properly registered and compliant with all relevant laws. This includes:
Registering your business with your state
Obtaining any necessary state or local licenses (in addition to your FFL)
Getting a sales tax permit if you'll be selling to customers in your state
Setting up an Employer Identification Number (EIN) for tax purposes
The exact requirements vary by state and locality, so it's important to research the specifics for your area. Your local Chamber of Commerce and the Small Business Administration (SBA) can be helpful resources.
Building Your Online Gun Store
With your business foundation laid, it's time to start building your actual online store. This is where your gun business truly comes to life in the digital world.
Choosing an E-Commerce Platform
Your e-commerce platform is the backbone of your online gun store, so it's crucial to choose one that meets your specific needs. The most important factor is ensuring the platform allows the sale of firearms and ammunition.
Some of the major e-commerce platforms, like Shopify and BigCommerce, have historically restricted gun sales. However, policies can change, so it's always best to check directly with the platform about their current stance and specific requirements for selling firearms.
Other key factors to consider when evaluating e-commerce platforms include:
Pricing and transaction fees
Customization options for your store's design and functionality
Integrated features for inventory management, shipping, etc.
App and plugin compatibility
Customer support and reliability
Some popular e-commerce platform options among gun retailers include:
Magento
WooCommerce
Shopify (with specific approval)
Taking the time to thoroughly research and compare your options will pay off in the long run with a platform that supports your business's unique needs.
Setting Up Your Payment Processor
Just as not all e-commerce platforms allow gun sales, not all payment processors do either. In fact, most of the big names like PayPal, Stripe, and Square explicitly prohibit firearm transactions.
You'll need a gun-friendly payment processor to accept payments on your gun store website. These specialty processors understand the firearm industry's unique needs and risks.
Some of the most well-known gun-friendly payment processors include:
Authorize.net
Clearent
Zenti
When comparing your options, pay close attention to:
Transaction fees (may be higher than traditional processors)
Contract length and early termination fees
Pricing models (flat-rate vs. interchange-plus)
Funding times (how quickly you'll receive your money)
It's also a good idea to have a backup processor in place in case your primary one changes its policies or runs into issues.
Creating Your Product Catalog
With your platform and payment processor set up, it's time to start building out your product catalog. This involves adding your inventory to your website with compelling descriptions, clear pricing, and high-quality visuals.
Some key best practices to follow when creating your product pages:
Use unique, keyword-rich product names and descriptions to help your products rank in search engines
Ensure all information is accurate and compliant with regulations (e.g., don't call a rifle an "assault weapon")
Include multiple high-resolution photos showing different angles of the gun
Add product videos showcasing features, use, and safety information
Clearly display pricing and any applicable taxes or fees
Organize products into intuitive categories for easy browsing
The more detailed and informative your product pages are, the more trust you'll build with potential customers.
Ensuring FFL Compliance at Checkout
A critical component of your online gun store is ensuring that every transaction complies with federal and state laws. This centers around collecting the buyer's FFL information at checkout.
There are two main ways to handle this:
Integrated FFL database: Some e-commerce platforms offer built-in integrations with FFL databases. This allows the customer to search for and select their local FFL right on your checkout page.
Manual FFL upload: Alternatively, you can use an FFL information form at checkout where the customer manually enters their FFL's details. You'll then need to verify the validity of the license before shipping the order.
Whichever method you choose, make sure it's clearly communicated to the customer and that you have a process for securely storing and managing the collected FFL information.
Integrating with Distributors and Shipping Providers
The final piece of your online store puzzle is integrating with your distributors and shipping providers. This will automate many of the day-to-day operational tasks of running your business.
Some key integrations to consider are:
Inventory management: Sync your website inventory with your suppliers' stock levels to avoid overselling and ensure accurate availability information for your customers.
Order fulfillment: Automatically send orders to your distributors for drop shipping to the customer's selected FFL.
Shipping labels and tracking: Integrate with shipping carriers to generate labels, track packages, and provide updates to customers.
Many e-commerce platforms offer built-in or app-based integrations for these functions. When evaluating potential platforms, assess their integration capabilities to ensure they can support your specific business needs.
Operating Your Online Gun Store
With your online gun store platform up and running, it's time to shift into operational mode. Running an e-commerce business is an ongoing process that requires continuous effort, monitoring, and optimization.
Marketing Your Online Gun Business
Marketing is essential to driving traffic and sales to your online gun store. However, gun retailers face unique challenges and restrictions when it comes to advertising.
Many of the usual digital marketing channels, like Google Ads and social media advertising, prohibit the promotion of firearms. For instance, Facebook and Instagram don't allow ads that promote the sale or use of weapons, ammunition, or explosives.
So, what can you do to market your online gun store? Here are some ideas:
Content marketing: Create blog posts, videos, and other informative content that attracts gun enthusiasts to your website. Focus on educational and entertaining content rather than direct promotion.
Email marketing: Build an email list of customers and potential customers, and send regular newsletters featuring new products, promotions, and industry news.
Influencer partnerships: Partner with respected figures in the gun community, such as popular YouTube reviewers or industry bloggers, to gain exposure to their audiences.
Targeted advertising: Use gun-friendly advertising platforms, like podcasts or print magazines in the firearms niche, to directly reach your target market.
Search engine optimization (SEO): Optimize your website and product pages to rank organically in search results when people are looking for the guns and accessories you sell.
Getting creative and prioritizing channels that allow you to reach your specific audience while staying within legal and platform boundaries is key.
Providing Exceptional Customer Service
In the gun industry, perhaps more so than others, trust is paramount. Your customers need to feel confident that they're buying from a knowledgeable, responsible, and legally compliant retailer.
Exceptional customer service is one of the best ways to build that trust. This means:
Being responsive: Answer customer inquiries promptly, whether by phone, email, or live chat. Customers should feel that you're readily available to assist them.
Being knowledgeable: Your customer service team should be well-versed in your products, industry laws and regulations, and your own policies and processes. They should be able to answer detailed questions and provide expert guidance.
Being transparent: Be upfront about your policies, fees, and processes. Don't leave customers guessing about important details like shipping times or return policies.
Going above and beyond: Look for opportunities to wow your customers. This could be through personalized recommendations, special accommodations, or post-purchase follow-up to ensure satisfaction.
By providing top-notch service, you'll win over individual customers and build a strong reputation that will attract new business through word-of-mouth and online reviews.
Optimizing the User Experience
Your work doesn't end once your online store is live. To stay competitive and keep customers coming back, you need to continuously improve the user experience.
Some key areas to focus on:
Website speed and performance: Ensure your pages load quickly and smoothly on all devices. Slow load times can frustrate users and hurt your search engine rankings.
Navigation and search: Make it easy for users to find what they're looking for with clear navigation menus and robust search functionality. Use filters to help narrow down options.
Product information: Keep your product descriptions and specs up-to-date and comprehensive. Anticipate common questions and proactively provide answers.
Checkout process: Streamline your checkout as much as possible. Minimize form fields, offer guest checkout, and provide clear progress indicators. Make sure your FFL selection process is integrated seamlessly.
Mobile optimization: With more and more users shopping on smartphones, it's crucial that your store is fully functional and user-friendly on mobile devices.
Solicit customer feedback on their experience, and use analytics tools to identify areas for improvement. Continuously test and iterate to optimize your store's performance.
Staying Compliant and Up-to-Date
Finally, a crucial aspect of operating your online gun business is staying on top of ever-evolving laws, regulations, and platform policies.
Make it a habit to regularly:
Review federal and state laws: Stay subscribed to ATF and state agency newsletters and alerts to stay informed of any legal changes that impact your business.
Check your platform policies: E-commerce platforms and payment processors can change their acceptable use policies at any time. Regularly review your providers' terms to ensure you're always in compliance.
Update your own policies: As laws and best practices change, update your own terms of service, privacy policy, and other customer-facing documents to accurately reflect your current practices.
Train your team: Make sure any staff involved in your online gun sales are up-to-date on all relevant laws and policies. Conduct regular training to ensure consistent compliance.
By staying informed and adaptable, you'll protect your business from legal and operational risks while providing the best possible service to your customers.
Get Your Roadmap to Online Gun Selling Success With Zen Payments
Selling guns online can seem like a daunting prospect, with a complex web of laws to navigate and unique operational challenges to overcome. But as this guide has demonstrated, building a thriving online gun business with the right knowledge, planning, and tools is very much possible.
Part of building your business includes setting up payment processing. With the right merchant account service provider, like Zen Payments, you can build your business, guns-a-blazing. Contact us today to get started.
Taylor Stika is the CEO and Founder of Zen Payments. With a background in the payment processing industry starting in 2015, Taylor has extensive experience in managing and optimizing payment systems. Under his leadership, Zen Payments has grown and developed into a reputable provider of high and low-risk payment.
