Since 2020, when the fee for export licenses for international sales of guns and parts was reduced from $250 to absolutely nothing, more and more companies have started to expand into global markets and export firearms and parts from the USA.
However, while some businesses are thriving, the EasyExport Insights™ 2021 Annual Report suggests that significant sources of revenue growth remain untapped. Why is that?
The truth is that, even with the removal of the license fee, revenue growth is not guaranteed. Companies that sell firearms and parts can’t simply open up to foreign markets and expect revenue to grow.
Not only are there some very common mistakes that can be made that can limit income, there are also additional administrative costs which can mean any extra revenue isn’t necessarily turning into extra profit.
Fortunately, there are ways to succeed. Here are some helpful tips for increasing revenue with international sales of firearms and parts, and seeing the best return on investment:
Target the right markets
There are different revenue potentials across different international markets depending on what goods you’re planning to offer for sale to customers outside the US. Figures from the EasyExport Insights™ 2021 Annual Report show that Canada, Australia, New Zealand, and France are top destination countries for US exports, for example.
Targeting the wrong markets could significantly limit the revenue you’ll see from exporting firearms from the USA.
Empower your business to sell more
Perhaps one of the biggest aspects limiting the revenue potential of international firearms sales is a company’s incapacity to handle more challenging international orders.
To maximize revenue, businesses must be prepared to efficiently manage the complexities of international orders and shipments.
Software can help with this, especially if that software automates the more time-consuming elements of international order processing such as determining the need for export licenses and import permits. It all comes down to doing more, with less.
Capture your competitors’ customers
Another element that can restrict revenue potential is that your competitors may already hold a significant market share within a given market if they have been exporting for longer and are more established in the export market.
To boost revenue, capture your competitors’ customers by offering a better, more streamlined buying experience.
Make it easy for customers to buy, reduce delivery times by processing orders efficiently, and eradicate any nasty surprises at customs.
Provide customers with peace of mind
International demand doesn’t necessarily lead to international customers, which is where many merchants go wrong. One major barrier to international firearms sales is customer trust.
With high value items especially - coupled with the need to obtain the necessary export licenses from the US Government to export internationally - international customers must have peace of mind that their orders will be delivered as expected. The ability to demonstrate that you can ship international orders compliantly and reliably can help boost revenue.
Improve visibility
Merchants will find it difficult - if not impossible - to increase revenue with international firearms sales if international customers don’t know that they’re able to buy from that merchant.
That’s why it’s so important to ensure that export capabilities are communicated and visible to international customers.
One way to do this is to market this capability through your website. Another option is to work with an online platform that will promote your business to international customers.
Identify KPIs
Companies looking to improve revenue should have a plan in place to monitor, track, and analyze key performance indicators so that they can quickly see whether their international firearms sales strategy is performing in a way that will deliver the type of revenue expected from export activities.
If not, then merchants have the opportunity to adapt the strategy in a timely manner, ensuring that their sales strategy is continuing to deliver the best results.
Exporting vs Successful Exporting
There’s a big difference between selling firearms internationally and selling firearms internationally and successfully.
Opening up your business to customers outside the United States isn’t an automatic way to drive revenue. It is, however, a way to maximize your opportunities.
By creating an international firearm sales strategy, adapting that strategy as needed, and ensuring you’re reaching out to the right international buyers, at the right time, with the right level of customer service, merchants can significantly boost their revenue, and turn international purchasers into valuable customers.
