- Avg. revenue /month$944
- Avg. sessions /month2,417
- Avg. profit /month$350
Why this business was started
My company is comprised of experts in various marketing, creative and sales fields. We offer services to companies to help them grow including ad technology, web design, content strategy, paid advertising and CRM optimization. In addition we build our own properties in different areas and none of us had much experience running eCommerce sites so we set out to build one. FlagStore.com ended up being available for sale and we immediately knew it was a perfect fit.
Flags are always going to be a big business and they are close to peoples hearts so we loved the idea. There are 150m US flags sold per year alone so it's a great opportunity to scale a nationwide brand across an everlasting product. There's no need to constantly sift through dropshipping databases to find winning products and shipping costs are minimal. There's also a large opportunity to include flag products that aren't necessarily flags, think mugs or hats with flags on them. With the most premium domain in the space, it has huge growth potential.
The reason of selling this business
We don't have the time or expertise on the manufacturing side to find the right partner and aren't willing to make the capital investment in infrastructure to ship products ourselves. Ultimately we had to narrow our focus to our primary products and the incredibly tough decision to put FlagStore up for sale was made. We love it, it has huge potential and we've put into place a solid gameplan that just needs invested in. It's already in the top 5% of traffic for stores started the same week. Putting the brand in the hands of someone who's able to give it their full attention is the right move for its future.
What's involved in running this business
Everything is pretty well automated down to the orders being submitted to our dropshipping partners. We spend about 15 hours a month handling support for orders and every few months we make sure our pricing is still correct to keep the margin up. All traffic is either direct or organic search so there's no time spent on acquisition. We've been posting a single article every few months and that's it. Social is being neglected, the email list is being neglected, we're not running any paid ads, we're not working with coupon sites. Someone that can give this their full attention can rapidly grow the brand by re-engaging on all customer acquisition channels.
Traffic and Performance
- Avg. revenue /month$944Verified
- Avg. sessions /month2,417Verified
- Avg. profit /month$350
- Profit Margin35%
- Avg. sales /month25
- Shopify plan
- Product Upsell, Auto Fullfill, Growave, Bold Discounts
- Hubspot CRM
Physical inventoryNot Included
Logo and branding assetsAll branding assets and logos across every platform FlagStore has an account on. These will be provided via email in all original vector formats so any designer can take over.
Personal support after sale45 days post sale support to help you get a grasp of things and answer any questions. Happy to review our strategy with you as well. This can be done via Slack, email or voice conversations, whichever the buyer would prefer
Product photosAll photos are yours and will be kept in the store for transfer to you
SuppliersWe use 3 different suppliers, 1 is primary and the other two are much less used. We'll be happy to transfer these over to you and make direct introductions.
How to grow this business
The current strategy is seeing month over month growth in both traffic and sales: https://mrkr.io/s/6081bee9ada5946b64fb0e1c/0
The bulk of the work was done 24 months ago with some minor tweaks along the way. Everything was done in house from the design to coding to strategy and execution. From a content and search perspective, you want to continue with the set strategy but with more resources put into it. This will accelerate the growth and enable it to become a top tier store in this category over the next few years, which gives it 6 figure revenue potential. Currently we were spending about 5 hours a month on FlagStore as a whole to give you perspective on that growth with minimal investment. To further boost sales growth there are 3 key areas that need further optimization:
Conversion rate still has room for improvement. We tested different combinations of coupons, discounts for registration and free shipping with some success but this can definitely be improved. There are also UI element and support tweaks that can be made to improve page load speed and close more sales. We would get 3-10 messages a day on a live chat bot but we weren't actively responding so we missed a lot of sales opportunities. Building a scripted chat bot through HubSpot would even be a good starting point.
Better CRM and social usage. There are 1.7k contacts in HubSpot that are active for remarketing through email and retargeting. This is a low cost way to increase sales and engage these users on a regular basis. These people love flags, they will leave reviews and comment on your FB and Twitter posts. We engaged in social efforts and email the first month but since then have put in almost 0 effort.
Paid Ads. We actually became a paid ad company because of FlagStore. We tested a paid ad agency the first two months and the results were good at about break even. The next few months we managed it ourselves and improved upon those results turning a small profit. From that point on we stopped engaging in paid ads for FlagStore. Even a small budget of 1 or 2k a month that's integrated with your content strategy will work well to help with growth.
Skills to have
The best thing about flags is they are forever. This isn't a flash in the pan product that only lasts 6 months. You're not constantly trying to find new things to sell (though you could add some more flag products to the store). This is a brand and product that will exist for the next 50 years. That said, the biggest issue we ran into with FlagStore was the products themselves. We were never able to find a dropshipper that had a product quality we felt comfortable scaling up. This is the single reason we stopped investing in it and we have never had the time or expertise to either find the right dropshipping partner or make the investment in infrastructure to store the products ourselves. Someone with expertise in textile manufacturing that can find the right drop shipping partner to work with or wants to make the capital investment to build their own infrastructure will have a big advantage growing FlagStore into a 6 or 7 figure company.
The entire store can be run with very limited technical knowledge as it's already setup to be automated. That said it would be good to have some basic ecommerce knowledge and ability to work inside of platforms with non technical requirements (Shopify and Hubspot). A technical partner or team member would be useful to implement performance optimizations and a/b test but it's not required if someone is willing to do a bit of learning.
Our features for a secure experience
- Verified revenue and traffic
- Secure messaging platform
- Escrow payment system
- Dedicated migration team
Why use Exchange?
Exchange is the largest and fastest-growing marketplace for Shopify e-commerce stores
Verified listing data
The revenue and traffic data that you see on each listing is pulled directly from its Shopify account. This means that the data has been verified. Exchange reviews and monitors listings for thorough and accurate information.
Secure messaging platform
You will be able to communicate with sellers via a secure messaging platform. After you log in and request information from a listing, sellers are notified and have the ability to respond. When you are ready, you can make an offer.
Encrypted payment capture
Exchange and Escrow.com have partnered together to provide you with safe transactions that have bank encryption, making sure that payment is securely captured. Escrow.com ensures that its users pass verification checks before transactions can proceed.
Take time to inspect the business
Once you submit payment to Escrow.com and the payment has been secured, the funds are held until you confirm that all assets received are as negotiated. You can use the inspection period to ask the seller any extra questions about the business.
Safe store transfer
When the transaction is finalized, the dedicated migration team at Exchange will begin the process of making you the new owner of the store. Buyers and sellers will be notified via an email from the Exchange team once store transfers have been completed.
Post-purchase 24/7 Shopify support
Once you log into your Shopify account for the first time and choose a subscription plan, Shopify Support Gurus are available 24/7 to help you with the settings of the store.