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Driving Up Ammunition Costs to the Ammo Shortag

Driving Up Ammunition Costs Shortage. What, exactly, is causing the month’s long ammo shortage and price increases that shooters and hunters are seeing across the country? After a series of interviews and private conversations, it’s clear that dragging their feet. In fact, just the opposite is true: 2020 represented the absolute manufacturing limit of the firearms industry. Many have pointed to the panic-buying mentality of American consumers and, even more acutely, at the opportunists who are buying ammo in bulk and then selling it online at increased prices. But is that happening frequently enough to cause an overall rise in ammo costs and a shortage on store shelves? Let’s take a look. Driving Up Ammunition Costs Shortage

Understanding Ammo Distributors and Dealers

If we’re going to understand the ammo shortage, we must first understand how ammunition is distributed and sold. Ammunition traditionally flows from a manufacturer’s facility to a distributor’s warehouse, where it’s then dispersed to dealers based on when they placed their orders and the quantity they ordered. I spoke with a large distributor who said that they, just like their competition, are getting the same regular shipments from manufacturers and those shipments are quickly broken down and allocated to dealers based on the timing of their orders. In other words, it’s business as usual. If a dealer was asleep at the wheel and failed to plan, their order is processed when they’re next in the queue. This could contribute to what customers are seeing in their local brick-and-mortar stores, and why some have empty shelves while others are getting pallets of ammunition delivered. Driving Up Ammunition Costs Shortage

Driving Up Ammunition Costs Shortage

As we all know, a ton of business is now conducted online. Many online retailers allow customers to backorder products and will fulfill those orders when stock is replenished. Oftentimes, these products appear to be perpetually out of stock, when in reality, online retailers are regularly getting stock, yet that stock immediately ships to customers with current backorders. In other instances, online retailers allow customers to set notifications to alert them when an item is back in stock, which explains why you may come across ammunition that is listed as in stock, but by the time you punch your credit card information in for your order, the stock is completely wiped out. You can find complaints about this on almost any firearms-related forum or social page.

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