Website Closers® presents an SBA Pre-Approved, impressively successful eCommerce company that offers a wide selection of flags ideal for the home, garden, workplace, or communal properties. Made from high quality materials and sourced from manufacturers across the globe, this company has done well over the last 5 years from its array of 34 compelling SKUs, which have an average order value of $32.
The business is now experiencing impressive 25% profit margins for the flags sold on both their own website and on Amazon, where the brand carries an enviable 4.9 Seller Rating. Their products are increasingly diverse, including not only American flags but also state flags, military flags, garden flags, flag poles, and different types of related accessories. While the brand has found a solid customer base for its SKUs, they have also experienced a fast-growing percentage of wholesale revenue to the market as well. A continued focus on B2B is one of numerous scale options available to this dynamic company. Other opportunities to increase profit margins include expanding the type of SKUs being sold, increasing sales on Amazon’s international platforms such as Canada and Europe, and launching the company’s first social media marketing campaign and SEO program.
Now that the company is pre-approved for SBA Financing, a buyer can rest assured that it has the foundation necessary to withstanding SBA SOP scrutiny. Further, a buyer can utilize our lending partners at Website Closers to purchase this business for as little as 10% down, amortized over an entire decade, at some of the lowest interest rates ever available to SBA loan recipients. This leverage opportunity makes ROI much easier for the acquisition of this business.
The company was formed 5 years ago with a simple and direct mission: to develop an eCommerce site marketing flags, flag poles, mounts, and hardware for residential properties, offices, and common public areas in housing communities. Several of their most popular items are manufactured specifically for this company and private labeled for them, all products are sold under their well-known, trademarked name.
Sales have been brisk, and peak between March 15 and June 30, when sales represent 65% of the annual business. Part of that is due to the Memorial Day, 4th of July, and Labor Day holidays, when sales rise sharply. In general, though, sales remain steady throughout the year and these cycles have been consistent over the past five years. An increasing percentage of their sales come from repeat customers, who return year after year to buy a new flag as the existing one gets worn out from age as well as weather exposure.
Up to 95% of sales are done on Amazon, where the company carries a tremendous number of rave reviews and 5 Star ratings.
This promising company has developed several top selling products, including a 3×5 American flag that represents 20% of overall sales; their Flagpole Kit, which accounts for 12% of sales; and a Flagpole Bracket, which brings in 6%.
The owners typically stock up to $200,000 worth of inventory, which is regularly purchased towards the end of the year. That supply will often get replenished around May or June for whichever items are running low. Virtually all sales are shipped through Fulfilled by Amazon, and typically between March and June the company will load up inventory at FBA warehouses to avoid running out of any supplies during their holiday rush.
The brand has worked with the same manufacturers over the years to build up strong and trusted relationships with each one. Inspections of the products are done through third parties.
Relying generally on PPC ads for the majority of their marketing efforts, this business focuses its ad spend on product targeting, headline ads, and video headline ad campaigns. On the organic front, this company maintains a blog on the website to boost SEO and help drive traffic.
With an already diverse product mix and a loyal customer base, this company is well designed to scale rapidly. Leveraging new products to include different types of flags such as those sports teams, colleges, and high schools could deliver incredible results.
The company could also put a stronger focus on B2B revenue streams to expand its sales within the wholesale market. This would also help brand awareness by putting their products in more digital storefronts such as Walmart and Target, while also exploring expansions of their products into retail and big box stores.
The company now sells exclusively in the U.S. and could use Amazon’s international platform to begin promoting sales on a global scale, including on Amazon Canada and Amazon’s European platforms.
With the lucrative and untapped social media market still on the horizon, this well-established business carries innumerable paths to success. Creating a presence on Instagram, TikTok, YouTube, and Facebook should build up the customer base to bring in incredible rises in organic traffic to the website.
Another option to scale would be to increase promotions on Amazon, where the company already has an extraordinarily strong Seller Rating and plenty of 5 Star reviews.
The current owner now spends just 2-3 hours per week running this business, with primary tasks focused on monitoring inventory levels, ordering inventory, and ensuring inventory is sent to FBA. The owner employs a third-party contractor to monitor and manage the PPC accounts.
Flags have remained a consistently popular item with American consumers for more than a century, a show of patriotism or love of country, and a particularly popular item during patriotic holidays such as Memorial Day and Independence Day. People also enjoy flying state flags, flags representing different branches of the military, and even novelty flags. This is a massive and durable market.
This successful eCommerce company has done a fantastic job in carving out a loyal corner of this booming and reliable market by selling all types of flags. Offering flags of countries, states, sports, military, and novelty images or sayings; this brand has an established base of customer support and a growing percentage of sales represented by repeat and wholesale customers.
There are a wide range of growth opportunities for this brand, including expanding internationally, adding new lines of flags, and expanding sales to alternative purchasing channels and retail stores.
A new owner could come in quickly and easily take over the operations of this business with low overhead and minimal management time requirements. This company was built on a very solid foundation, which is reflected in its strong sales and profitability, giving it a clear path for significant growth throughout the foreseeable future.
This eCommerce Brand Represented by:
Technology, Internet & eCommerce Business Brokers
Listing ID: WC2326