I run a bunch of "webshops"- Up until this last year they were pretty successful-
This last year has been less successful for several reasons; I'm not really doing much marketing, not doing much innovation - {new products etc.} in the areas that I have traditionally sold well (like my metaphysical website).
(I've been wasting all my time modding and experimenting with lights and posting on CPF.)
Lots more on-line competition in all of the areas too.
ANYWAY...
The trouble with "Little guys" selling commercial items like flashlights is that you can't really buy enough at one time to get the deep discounts so that you can sell cheaply and compete on price.
Like the previous posters have said, Service is the key to success for the "little guy". Treat every customer like you would want to be treated yourself. Know your product line "inside and out".
Quick shipping is very important- I have always tried to get stuff shipped within 24 hours of receipt of order, but you are still at the mercy of the shipper.
Because of where I am and the size of the majority of what I sell, the U.S. Postal Service is my main shipper. (UPS is just a hassle here because you have to call long distance to arrange for a pickup or drive 50 miles to go to the nearest shipping center.)
Airborne & Fed.Ex. are just too expensive for most of the things I sell.
Anyway, especially since 9-11 the USPS has been even more ---unpredictable---- sometimes Regular mail and Parcel Post will get across the country in two days, and sometimes Priority Mail will take two weeks to get across the state.
Unless you have a LOT of money to spend on the selling commercial flashlights on-line would be a difficult way to make any money, in my opinion.
UNLESS:
If you specialize in CUSTOM flashlights. If you could get SOLE distribution rights from some guys that make the great, popular LED mods like ElektroLumens, Lambda, Daniel Ramsey etc. then you could probably make good profits with a small scale operation.
I'm making an assumption that you mean primarily to sell online- The internet is still the least expensive way to market to a multitude of people. Here, a "little guy" can look like a big company without spending big bucks. Even though today selling online takes a lot more work and money than it did 2 years ago, but it still provides the largest audience per $ spent.
If you are thinking of doing a printed mail-order catalog, that is a whole new "ball game" and to look "decent" you have to spend thousands of dollars per mailing, and magazine advertising is also incredibly expensive.
Now, some folks HAVE done well in mail order by sending out really cheap looking "XEROX" copy sales flyers on an tiny budget, but success with this method is really chancy, and is less likely to succeed today than it was 20 years ago. Today's society tends to be more swayed by "style" rather than "substance".
Just My Humble Opinion.
I'm a cheapskate, so I shop by price, but I also factor shipping charges into the price; If I find a place that sells something I want really inexpensively, but has a high shipping charge, I'll go elsewhere even if I have to pay a little more in total. I may be "cutting off my nose to spite my face" but I won't deal with anyone that uses high shipping charges as a "profit center".
This is a little off subject, but I don't know how many (hundreds) of eBay auctions I have not bid on because they had outrageous shipping charges (like $10.00 on a $5.00 item that would cost a dollar including packaging to ship. Sorry about that little rant.