Flagship Will Shutter Its Marketplace, Citing Creator Disinterest

Creator tech agency Flagship quietly revealed it’s shutting down its core ecommerce platform, in response to an FAQ initially posted on its web site. The ultimate day of gross sales on the platform is July 16.The corporate originated with that platform in 2023 and wager that creators would need to curate product suggestions and earn affiliate income utilizing its platform. Over the previous 12 months, greater than 1,000 creators and 500 manufacturers used the Flagship market to drive gross sales, cofounder and CEO Youssef Ahres instructed ADWEEK in an e-mail. He added that some creators earned greater than $200,000 a 12 months by Flagship.However that wasn’t sufficient to maintain Flagship’s core platform.“Most creators—even extremely efficient ones—want creating content material over working a storefront, and it was tougher than anticipated to get them enthusiastic about selling new or unfamiliar manufacturers,” Ahres, mentioned, including it was troublesome for creators to drive constant gross sales. Consolidation in creator techWhen Flagship launched, it got down to compete with affiliate giants like LTK.The startup is now pivoting its enterprise round an AI-powered search engine connecting manufacturers with creators referred to as Radar. The corporate’s web site was redesigned final week to advertise Radar. Ahres didn’t reply if the pivot will end in layoffs.“We’re dedicated to constructing instruments that assist creators earn from their affect,” mentioned Ahres. Flagship launched in 2023 and raised an undisclosed quantity in seed and Sequence A funding. The corporate’s traders embody VC companies Sequoia Capital and Index Ventures, and each will proceed to again the corporate because it transitions away from its ecommerce platform product, in response to Ahres. He didn’t reply when requested how a lot Flagship had raised in complete.Flagship’s ecommerce platform attracted a group of creators trying to earn affiliate fee exterior of Amazon. One such creator is Caroline Moss, the author and host of the favored buying publication and podcast, Gee Thanks, Simply Purchased It! Her publication and podcast storefront lived on Flagship, and she or he appeared on Flagship’s web site and in promotional movies.Moss introduced the shuttering of Flagship on the Gee Thanks Instagram account and expressed her disappointment about its closure in a weblog submit. She praised the platform’s skill to attach her viewers to small companies and wrote, “it gave us a house that aligned with our values.” Moss didn’t reply to ADWEEK’s request for remark. Flagship’s closure hints that startups focusing on affiliate linking is perhaps underneath risk as main platforms like TikTok launch their very own ecommerce options like TikTok Store, and combine Amazon buying immediately into the platforms.Whereas traders’ curiosity in influencer advertising companies has grown over the previous 12 months, entrepreneurs more and more search for extra specialised instruments that streamline handbook processes like advert shopping for and managing creators.