Ammo sales are on the rise, but not for a good reason. Many are clamoring to get their hands on an armor-piercing 5.56 millimeter bullet that is commonly used in AR-15 semiautomatic rifles. The ATF wants to ban these bullets, citing danger for the public and law enforcement, due to their “armor-piercing” abilities. They are also hesitant of these bullets being sent overseas and given to terrorists, i.e., ISIS/ISIL. This is also the same type of ammo that was used in the Sandy Hook Elementary School tragedy. While short-term sale booms are good for business, the long-term effects may be damaging, if you do not respect your customers.
By this, I mean that prices are now skyrocketing for these bullets. Many merchants are charging a 200% or more markup, just because they know the bullets will sell. Ammo aficionados are known to pay outrageous prices for weapons and ammo, and some merchants see this as fair game. However, price gouging of any kind is unethical in the business world. This behavior, while lucrative short-term, can end up ruining your reputation long-term due to the fact that you were a price gouger.
While litigation will certainly do one for months, if not years, over the banning of this ammo, you need to make sure that you and your online firearm merchant account is safe. You need to watch out for suspicious purchases, as these can cause a fraudulent charge and chargeback. Often, when a product is big news, or being quickly phased out, fraudsters use this time to make their purchases. Since this ammo could fetch a good amount on the black market, it is even more important that you pay attention to who is buying the goods. If you sell online, call the phone number attached to the information, and if you are still not sure about the purchase, you could always ask for a photo scan or fax of their identification card. Another good rule of thumb is not to ship to PO Boxes, as these are often associated with fraudulent schemes. Also, make sure that you keep in touch with your online firearm merchant account provider. A reliable one, such as EMB, can help you figure out if a suspicious purchase is fraudulent before it hits the bank.