Aug 21, 2024
Fraser Smeaton: The
$50M Amazon Success Story
From Losing to
Winning
Early Years
and Career Beginnings
Fraser Smeaton’s
journey began in the field of Electrical Engineering at university,
but his career soon shifted to the corporate world. He spent eight
years working in Marketing and General Management roles, where he
gained invaluable experience in business strategy and market
dynamics.
From Side
Hustle to Full-Time Entrepreneur
In 2009, Fraser
started a side hustle that quickly grew into a full-time business.
The venture gained rapid traction, going viral within its first
year, which led Fraser to leave his corporate job to focus entirely
on his new business. Initially, the business was promoted through
its website, heavily supported by Facebook advertising, which drove
significant growth in the early years.
Expansion and
Early Challenges
As the business grew,
Fraser expanded into wholesaling, including becoming an Amazon
vendor. This period of expansion, which lasted until 2012, was
marked by rapid growth. However, the company soon faced the
challenges that come with scaling up. As competition increased and
costs soared, the demand for their products began to
decrease.
The Low Point
and Strategic Shift
By 2015, Fraser's
business faced over £1 million in losses, leading to a workforce
reduction by half. Fraser noted that third parties sold their
wholesale products on Amazon and decided to sell directly on Amazon
to capture retail and wholesale margins and control sales.
Refocusing on
Amazon
Pivoting to Amazon as
the main sales channel was pivotal for the company. Success hinged
on refining all Amazon-related processes—procurement, logistics,
pricing, content, SEO, advertising. Fraser's belief in cumulative
small improvements and launching over 150 new products each year
drove substantial growth.
Navigating the
Pandemic
The pandemic presented
new challenges, particularly as the business struggled while other
sectors flourished. However, Fraser’s quick action to control costs
and focus on improving internal processes helped the company
navigate through this difficult period. Instead of retreating, they
used this time to refine operations, setting the stage for future
success.
Current
Success and Business Moat
Today, Fraser’s
business generates over $50 million annually and employs more than
60 people. The company’s competitive advantage lies in its ability
to manage complex operations profitably in a tough category. This
expertise has allowed the business to thrive in an increasingly
competitive landscape.