How to Sell Firearms Online: ETI Guide
Starting an online firearms business takes some work, but it’s definitely doable if you follow the rules and stay organized. The key is understanding all the requirements and making sure you meet them consistently. Once you’ve got your system set up, you’ll be ready to serve customers across the country while keeping everything legal and safe.
Here we’ll break down everything you need to know about how to sell firearms online – from getting your FFL license and finding your firearms-friendly payment processor to setting up an online store and making your first sale.
Why Sell Guns Online?
Since COVID-19 hit, everyone’s gotten used to buying things online. The pandemic significantly boosted the e-commerce sector, and many found out that selling guns online actually works pretty well. Having an online shop means:
- You can reach customers everywhere.
- Your store is open 24/7.
- You’ll spend less than at a physical store.
- It’s easier to manage your inventory.
- Customers can browse at their own pace.
Getting Started: Becoming an Online Gun Dealer
Let’s start with the most important part – getting legally set up to sell firearms.
Getting Your FFL
Before you can sell guns online, you’ll need a Federal Firearms License (FFL). It is your permission slip from the government to sell guns legally.
Here’s how to get an FFL:
- Fill out ATF Form 7 (the application for your license).
- Get fingerprinted and photographed.
- Pay your application fee.
- Pass a background check.
- Meet with an ATF investigator (they’re just making sure you understand the rules).
Different Types of Licenses
The most common license for online sales is Type 01 (for general firearms dealers). There are other FFL types, but unless you’re planning to manufacture or import guns, Type 01 is probably what you need. Keep in mind that if you’re planning on dealing with NFA firearms, you need to obtain a SOT license.
Local Rules Matter Too
That old saying about checking your local laws applies here. Each state and city might have its own rules about:
- Additional licenses that you may need
- Where you can store firearms
- Extra background check requirements
- Special business permits
Setting Up Your Online Store
Now that you’ve got your licenses sorted out, let’s talk about actually building your online shop.
Choosing Where to Sell
You’ve got two main options:
- Platforms specifically made for selling firearms (for instance GunBroker.com, Armlist)
- They already know the rules. These platforms automatically comply with regulations, follow updates, and have all the required legal notices and disclaimers.
- Have built-in age checks. These include customer verification tools that check age and identity before purchasing, saving you time and reducing legal risks.
- They’re set up to verify FFL dealers. Established sites dedicated to selling firearms often have direct access to FFL databases, automated license verification, and tools to manage FFL-to-FFL transfers.
- Regular eCommerce platforms (such as WooCommerce or BigCommerce)
- With these platforms, you will need to add additional features like age gates, tools to access FFL databases, compliance checkers, and special checkout requirements for firearms.
- It will take time to find and install the right plugins, customize your checkout process, and make sure that everything follows ATF rules. You may consider getting professional help if you are not familiar with the steps needed.
- It may be deceivingly more cost-efficient in the beginning. However, while basic platform fees are lower, you’ll need to budget for add-ons, custom development, and proper ongoing management and maintenance of your site to make sure it’s compliant with local and federal gun laws and regulations.
Making Your Website Work Right
Your website must:
- Check the age of users first!
- Keep terms and conditions clear and easy to find.
- Put your FFL info where people can see it.
- Protect your customers’ information with the proper encryption and updates.
- Make sure it also works well on cell phones.
Getting Paid: Payment Processing
This is one of the trickier parts of selling firearms online. Not every payment processor wants to work with gun dealers, but don’t worry – you’ve got options:
- Special firearms payment processors such as Electronic Transfer Inc. (ETI).
- High-risk merchant accounts (companies that specialize in high-risk industries, including ETI, often provide these services).
- Payment companies that work with FFL dealers (for instance PaymentCloud).
When picking a payment processor, look at:
- Their fees as firearm merchants often face higher rates.
- How they handle disputed charges. Gun sales typically have more chargebacks than typical retail.
- The fraud prevention tools used to protect your business from fake orders and stolen cards.
- How easy they are to work with; you want a system that integrates smoothly with your website.
- The quality of their customer service, as you may require their help from time to time.
Finally, Selling Guns Online
Now for the exciting part – getting your inventory online and making your first sales as an online gun dealer.
Listing Your Products
When you put firearms on your website:
- Include clear, detailed product descriptions. This will help customers make informed decisions and reduce unnecessary questions.
- Use high-quality photos. Customers can’t handle firearms in person, so good photos make you look professional while building customer satisfaction and confidence.
- List all the important specifications that weapons may have such as caliber, barrel length, capacity, and other details that shooters need to know.
- Be clear about shipping restrictions. Inform customers upfront about which states you can ship to and any special requirements needed.
- Price competitively, but remember to factor in all your costs as well. Don’t forget to include FFL transfer fees, credit card processing fees, and any shipping costs in your pricing strategy.
How Sales Work
Taking Orders
- Check that your customer is good to go:
- Verify they meet federal age requirements (21 for handguns, 18 for long guns).
- Get valid government-issued ID info, do not just take their word for it.
- Make sure they’ve chosen a licensed online gun dealer in their area who’ll handle the transfer.
- Be clear that they’ll have to pass a background check at their local FFL before taking possession.
- Remind them that their state might have additional age or permit requirements.
- Handle the payment process:
- Use your firearms-friendly payment processor to handle the transaction.
- Make sure the payment clears before moving forward.
- Save order details, customer info, and payment confirmation.
- Email them all the details about what happens next.
- Maintain detailed transaction records (you’ll need these for ATF compliance).
Shipping the Firearm
Here’s something important: You can’t just ship a gun to someone’s house. Instead:
- You’ll ship it to another FFL dealer near your customer.
- Verify the receiving dealer’s FFL.
- Package everything safely and legally.
- Use approved shipping companies.
- Get insurance.
When the Customer Gets Their Gun
The customer will need to:
- Fill out Form 4473 (the background check form).
- Pass their background check.
- Wait if their state has a waiting period.
- Show the proper and valid ID.
- Pay any transfer fees to their local FFL.
Keep Those Records!
Always keep records of:
- Every sale
- Background check results
- Shipping details
- FFL transfers
- Customer information
Wrap Up
Selling firearms online is a business where attention to detail really matters. Take your time setting everything up right, and don’t be afraid to ask for help from other FFL holders or legal experts if you need it.
Need help with payment processing for your online firearms business? Electronic Transfer Inc. specializes in FFL-friendly payment solutions. Give us a call – we’re here to help you succeed!