#465 - Ghosts, Goblins, & $50 Million: The E-commerce Business of Halloween Costumes

Unmask the secrets of a $50M costume empire. From million-dollar days to seasonal surges, discover what Halloween sellers can teach every Amazon entrepreneur.

Fraser Smeaton, the mastermind behind a $50 million costume empire, joins us to unveil the fascinating world of seasonal business success. With Halloween just around the corner, Fraser spills the beans on capturing 15% of annual revenue in just four days leading up to the spooky celebration. We explore the cultural evolution of Halloween, from its roots with Scottish and Irish immigrants to its booming presence across the U.S., Canada, the UK, and Europe. Fraser also shares how confectionery companies have sweetened Halloween's appeal in the UK over the past 15 years, and offers a nostalgic look at traditional celebrations like guising in Scotland.

The journey from a bedroom startup to a global costume phenomenon is nothing short of inspiring. Fraser recounts how writing the website URL on Morphsuits turned customers into living billboards, and how harnessing early Facebook advertising created waves in the e-commerce ocean. As the business scaled rapidly, they navigated the storm of market saturation and competition, pivoting towards direct-to-consumer sales on Amazon. Fraser emphasizes the significance of e-commerce tools like Helium 10 and the wisdom gained from networking events, which transformed their operation from $15 million to a $50 million powerhouse. 

Talking about the operational side, we uncover the complexities of managing a seasonal costume business. From intricate retail partnerships with giants like Spirit Halloween and Target to the art of balancing high-end and budget-friendly offerings, Fraser reveals the strategic intricacies of thousands of SKUs. He sheds light on the international demand for costumes, highlighting the year-round efforts involved in product design and inventory management. As tariffs fluctuate and international expansion beckons, Fraser's insights provide a roadmap for navigating economic challenges while maintaining a festive spirit in the vibrant world of costume sales.

In episode 465 of the AM/PM Podcast, Kevin and Fraser discuss:

• 09:09 - Seasonal Business Challenges and Strategy
• 11:16 - From Bedroom to Global Success
• 13:23 - Year-Round Dressing Up Culture in Europe
• 18:28 - Navigating Business Challenges
• 23:05 - Networking Across Different Industries
• 25:04 - Retail Strategy for Costume Sales
• 26:16 - Standard vs. Licensed Costumes
• 29:22 - Product Complexity and Growth Strategies
• 34:38 - Seasonal Costume Sales Strategy
• 36:17 - Seasonal Business Planning and Inventory Management
• 42:24 - US Tariffs and Halloween Inventory Challenges
• 45:22 - Inventory Challenges and Adaptations During Shipping
• 48:59 - Christmas Party Collaboration With Interactive Costumes
• 50:14 - Expanding Costume Business Internationally
• 56:10 - Opportunities for Costume Market in Japan 
• 1:01:01 - Analyzing Past Trends for Future Projection
• 1:01:42 - Utilizing Helium 10 for Costume Sales