A devastating business collapse has been revealed by an Indian startup founder, whose company once achieved remarkable daily sales of ₹20 lakh. From humble beginnings, the founder built a thriving home organizer business, only to see it succumb to a sudden and catastrophic downturn.
The founder’s entrepreneurial spark was ignited in 2017, when he capitalized on a gap in the market for affordable storage products on Amazon, investing ₹2.5 lakh in an initial stock of 300 products that rapidly sold out. However, the business’s fortunes were irreparably reversed when Amazon introduced a rival brand, decimating the founder’s revenue streams and destroying his ambition to create a lasting legacy of wealth.
In a candid post on saleries and career discussions platform Grapevine, the founder shared his harrowing experience, stating, “I went from selling 20L of products per day to watching my generational-wealth dream crumble under Amazon. My humble brand of home organizers was dominating on Amazon and Flipkart, raking in nearly ₹20 lakh in daily revenue at its peak. Today that business is practically gone, undone by Amazon’s move into private labels that mimicked my success and I’m figuring out my next steps. I’m not broke or working a 9-5, but the potential for creating true generational wealth was ripped out from under me before it could fully materialize.” The founder’s once-thriving business was brought to its knees by Amazon’s strategic entry into private labels, leaving him to reassess his future endeavors.
The founder recounted the origins of his business, stating, “It all began in 2017. I was on AliExpress looking for budget-friendly storage ideas for my apartment, when I realized these products were selling at inflated prices on Amazon India. I took a leap of faith and spent about ₹2.5 lakhs to buy 300 units across 5 SKUs. My average landed cost per piece was around $4–$5 (₹342-428) after factoring in shipping, customs, and fees, whereas I planned to sell them for $10–$12 (₹856-1027) worth of INR. To my shock, all 300 sold out in roughly 50 hours. Immediately, I reinvested to triple my inventory with about ₹7.5 lakhs. Same story – sold out fast.” This initial success sparked a period of rapid growth for the business, with the founder quickly scaling up his inventory to meet the surging demand.
In a remarkably short span of two months, the business achieved phenomenal success, generating nearly ₹20 lakh in daily sales on Amazon and Flipkart. With impressive profit margins ranging from 15% to 25%, the founder’s daily earnings soared to ₹3 to 5 lakh. The rapid growth exceeded his expectations, and soon, Amazon took notice, offering exclusive benefits such as top seller status and personalized account management with expert marketing guidance. During his inaugural trip to Yiwu, China, the founder aimed to establish direct relationships with manufacturers, investing a modest ₹3 lakh in travel, accommodations, and sample procurement. At that juncture, the business seemed poised for continued expansion.
The founder revealed that Amazon extended an invitation to a prestigious seller summit in Singapore, where he had the opportunity to meet with one of the company’s senior vice presidents. During this meeting, a potential collaboration or acquisition was proposed, offering a lucrative deal that could have secured his financial future.
However, fueled by confidence in his business’s unstoppable growth, he declined the offer, interpreting Amazon’s interest as a validation of his success. Nevertheless, his optimism was short-lived, as Amazon soon launched a competing product with identical features at a lower price point, causing his top-selling products to lose visibility in search results, and his daily revenue to plummet.
The founder reflected on the valuable lessons he gleaned from his experience, stating, “Did end up learning a few things: Don’t put everything on one platform – If all your sales come from Amazon, one change in their policy or a competitor’s move can wipe you out. Always try to build your website, email list, or community so you’re not at the mercy of someone else’s platform. Take acquisition offers seriously – When a giant company like Amazon wants to buy you, it’s often because they see a big opportunity. If you say “no,” they can just copy your idea and outspend you. Always weigh your options carefully and think about the consequences before you turn them down.”
The founder cautioned that rapid wealth accumulation can create a false sense of security, as unforeseen events can swiftly alter the landscape. He emphasized the importance of setting aside a financial safety net, even during periods of prosperity, to mitigate potential risks. Furthermore, he advised entrepreneurs to remain vigilant and adaptable, particularly when a large competitor enters their market.
In response to Amazon’s entry into his market, the founder recommended launching distinctive products that are difficult to replicate or focusing on building a robust brand presence outside of the platform. He acknowledged that complacency can be a significant obstacle, but stressed that continuous improvement and attention to market trends are essential for long-term success. Despite the challenges he faced, the founder expressed gratitude for the opportunity to receive an offer from Amazon, recognizing it as a privilege.
