Do FFL's always own the guns that they sell?

[smarley]

I just had a simple question -

Does anyone know if FFL's are required to own the guns that they sell (for example, the guns that they advertise on Gunbroker.com)?

Perhaps another way to put the question - Is it SOP for an FFL to work with firearms wholesale houses as a quasi-representative and advertise/sell for those firm on Internet gun sale sites? The wholesaler would provide the FFL with a constantly updated list of firearms available and when the FFL advertised and sold one of the firearms, he would just make a call to the wholesaler to send the firearm to his address prior to shipping it to the winning bidder.

Does this sound reasonable or do FFL's selling on the Internet need to first purchase the firearm, take possession of it and then advertise and sell it on the Internet?

Forgive my lack of knowledge and thanks!

Marley

 

[soloban]

Take a look at GalleryofGuns.com

This is Davidson's gun distributor, they sell the guns out of the Davidson's warehouse in Arizona through dealers across the US.

 

[rule303]

No, not always. Many of the big online sellers like Bud's, and Cheaper than dirt never touch most of the guns they sell, they are drop shipped from distributors. Quite a few guns on the auction sites are the same way.

 

[snubbies]

FFL Ownership

Speaking only for myself I own most of the guns I advertise and sell. The exception is I infrequently take a gun in on consignment and sell it for a commission for the owner. I would venture to say that most dealers have a variety of avenues of buy and sell.

 

[dogtown tom]

smarley .....Does anyone know if FFL's are required to own the guns that they sell (for example, the guns that they advertise on Gunbroker.com)?

There is no law or ATF regulation that requires dealers to own the guns they advertise for sale.

Perhaps another way to put the question - Is it SOP for an FFL to work with firearms wholesale houses as a quasi-representative and advertise/sell for those firm on Internet gun sale sites? The wholesaler would provide the FFL with a constantly updated list of firearms available and when the FFL advertised and sold one of the firearms, he would just make a call to the wholesaler to send the firearm to his address prior to shipping it to the winning bidder.

Quite a few dealers have access to real time inventory at a distributor and can have the gun you want delivered in a couple of days. Bud's does this and has been highly successful "drop shipping" direct from a distributor.

As mentioned above many online dealers (such as Gallery of Guns) dont stock anything you see on their site. Gallery of Guns is a shell website for Davidsons (a distributor). Order from GofG and Davidsons delivers the gun to the dealer for transfer to the buyer. The software allows the dealer to set his own markup.

do FFL's selling on the Internet need to first purchase the firearm, take possession of it and then advertise and sell it on the Internet?

Nope.

 

[smarley]

Thanks guys, I really appreciate the quick response.

If I may ask a follow-up question -

Since the FFL doesn't need to own the guns that they sell, they run the risk of selling something on the Internet and then being told by the wholesaler that the gun is not in stock.

While there doesn't seem to be much of a recourse for the buyer (they are just told by the FFL that they can't actually fulfill the sale and that no money is owed), does the BATFE or the FBI care either way? Is there a chance that too many missed sales due to unavailable firearms could cause the FFL to lose their license?

Just curious. Thanks again!

Marley

 

[bikemutt]

Just a guess but I can't imagine BATFE or the FBI being concerned about a gun transfer that didn't happen.

Now FTC, maybe. BBB, sure.

There's really not much to gain by repeatedly not selling something.

 

[Dnaltrop]

That sort of situation would usually result in a Backorder, and a good seller will allow you to refund your money if the wait is unacceptable.

Not fun when it happens to you, but Such is life.

 

[hermannr]

Not only do large gun shops 'broker" weapons for distributors, even smaller shops sell on consignment. In which it becomes a person to person transaction, even if not a FTF, with the FFl the broker again.

 

[dogtown tom]

smarley ....While there doesn't seem to be much of a recourse for the buyer (they are just told by the FFL that they can't actually fulfill the sale and that no money is owed), does the BATFE or the FBI care either way? Is there a chance that too many missed sales due to unavailable firearms could cause the FFL to lose their license?

ATF and the FBI have no authority over a transaction that never occured.
As such, they don't give a rats hiney.

 

[Jim K]

BATFE enforces federal law and its own regulations; it does not force compliance with business ethics or some customer's idea of what is right. It is not whether a sale is completed or not. One poster found that he paid more for a gun than he would have paid at another store, and demanded BATFE revoke the license of the guy who charged too much. They didn't.

I don't know if they still do it, but at one time distributors would help a new business by letting it have guns on a "pay us when you sell" basis. And of course, dealers take out loans to buy stock, so those guns and other items belong to the bank, not to the dealer.

Many small dealers also do a lot of consignment sales. I have known dealers who had over half their stock in consignment items.

No matter who technically owns the guns on the rack or in the case, they have to be logged in the dealer's book and he is responsible for them.

Jim

 

[mgkdrgn]

I sell guns I don't own all the time.

It's called "consignment sales", and beyond the Mosin Nagant rifles that I do own, it's the bulk of my business.

Do I sell guns that I don't have in my possession? No. But that is a different question.