eCommerce Brand of American, State & Military Flags & Poles | 9 Years in Business | 100% Made in America Products | Amazon & Shopify Sales | $44 AOV

Pending

WebsiteClosers® presents a thriving eCommerce shop with a strong platform on Amazon, marketing their line of Premium Quality Flags and related accessories. With the Flag Manufacturing industry valued at $8.8 million in 2023, this company has amply demonstrated how to attract customers in this niche space. Offering American, State, Military, and World flags, the company has appealed to a fast-growing customer base that is politically conservative, very patriotic, and eager to buy SKUs that are made exclusively in the USA. That has become one of this business’ most distinctive selling points, along with the fact that its SKUs are fully trademarked and sold under the company’s brand name.

For the past 9 years, the company’s products have sold at a healthy pace throughout the year, appealing to customers who appreciate their Average Order Value of $44. Customers have provided the company with highly enthusiastic reviews, noting the superb craftsmanship of their flag and attention to customer service. Their products are available now on the company’s Shopify website and Amazon shop, where the bulk of their sales are made. The company has also succeeded in creating online spaces that enable flag enthusiasts to connect within their online community, which has also made their demographics even more loyal. The company’s Repeat Customer Rate just shot up by 23% as the company enjoys a healthy number of new upsells.

The SKUs focus not only on American history but also on social causes such as the ongoing challenges confronting Prisoners of War. New products are often created based on a mix of customer feedback and research on what competitors are offering.

In addition to sales in the U.S., the company enjoys a growing number of sales in Canada and Mexico and the potential to expand globally through Amazon’s foreign platforms. Their accessories include flagpoles and flagpole mounts, and the company has explored opportunities for additional SKUs, including flags with sports themes, easy add-on solar lighting for the flagpoles, and product bundles, which customers have requested.

A buyer gets the advantage of a highly automated business that has plenty of growth potential and comes with a fiercely loyal customer base in a profitable niche space. Their typical customer values the Made in the USA label over price and has singled out the company’s personalized customer service as a reason they make repeat purchases and provide the company with glowing reviews.

This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly. Opportunities include expanding their SKUs, adding new listings from their website to the Amazon store, raising prices to be more in line with competitors, and starting a newsletter on American history to build greater brand recognition.

Business Broker Takeaway

Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:

1. Turnkey Operation. The current owner employs 3 part-time workers who oversee customer service and shipping, while many of the daily tasks are managed by Amazon. That includes the company’s use of Fulfillment by Amazon, and their ability to get additional items Dropshipped by their suppliers. As a result, the current owner works 4 hours per day during the busiest season (usually around the July 4 holiday) and just one hour per day during the last four months of the year. For a buyer, this company’s 14 SKUs are highly manageable, and the owner focuses mainly on inventory management, communicating with suppliers, and overseeing the business’ advertising campaigns.

2. Diverse Marketing Plan. Since the company knows its typical customers have conservative values, are patriotic, and prioritize Made In the USA labels, they have been able to craft a strong content marketing plan that speaks directly to these demographics. While PPC ad campaigns on Amazon have brought customers to their online shop, they also benefit from a social media campaign that includes 3,800+ followers on Facebook and 4,280+ views on their YouTube channel. The company also employs keywords on its website and product descriptions to get higher rankings in search engines, and a blog on its website to expand its customer base. They also send out monthly email newsletters to subscribers.

3. Efficient Operations. The company maintains steady revenue growth because after nearly 10 years, they have a reputation for quality SKUs and good service. With their turnkey operations and well-established presence on Amazon, this would be a great opportunity for an entrepreneur looking to operate their first online business. The business would also be ideal for a veteran eCommerce business operator, especially one who understands how to scale an already successful company. The new owner would have minimal tasks to handle daily but would have opportunities for immediate growth simply by launching additional SKUs.

The Company

First launched 9 years ago, the company now enjoys high demand for its flags leading up to Independence Day and additional peaks in sales around other national holidays. Sales remain steady throughout the rest of the year.

Today Amazon makes up 92% of their total sales, and the remainder comes from their website. The company has been able to negotiate the lowest cost and shipping terms that its suppliers offer and has benefitted from these discount shipping rates for years. The company maintains an average of nearly 3 months’ worth of inventory at all times to keep up with demand. Small orders usually ship within a week while for large orders, typically shipment comes in about a month.

They have small warehouse needs and primarily rely on FBA warehouses and are currently moving to 3PL.

The seller is now looking for an investor eager to sell a private label brand of their own, with a good reputation, evergreen sales on Amazon, and a brand website. The seller has attributed much of their long-term success to strong communications with suppliers and a solid emphasis on customer service.

There is major potential to build out this brand even further. It already benefits from a devoted customer base, growing revenues, an increasing Repeat Customer rate, and brand recognition within its niche space.