In a saddening account shared on the social media platform Grapevine, an Indian startup founder recounted the heartbreaking collapse of his once-thriving home organizer business, which had reached a peak revenue of Rs 20 lakh per day. The entrepreneur’s journey, marked by rapid success and sudden decline, highlights the challenges faced by small businesses in the competitive e-commerce landscape.
The story began in 2017 when the founder, frustrated by overpriced storage solutions on Amazon, decided to take a risk. He invested Rs 2.5 lakh to purchase 300 units of affordable storage products, which sold out within just 50 hours. Encouraged by this initial success, he quickly expanded his inventory, investing Rs 7.5 lakh to triple his stock. Within two months, his business was generating nearly Rs 20 lakh daily on platforms like Amazon and Flipkart.
However, the entrepreneur’s dream took a devastating turn when Amazon launched a competing brand that mirrored his successful products. This move drastically reduced his visibility and revenue. “I went from selling Rs 20 lakh worth of products per day to watching my generational wealth dream crumble under Amazon,” he lamented. Despite the setback, he emphasised that he is not financially broken but is grappling with the loss of potential wealth.
Reflecting on his experience, the founder noted that his business had garnered attention from Amazon, receiving perks such as top seller status and even an invitation to a seller summit in Singapore. There, he was offered a potential collaboration or acquisition, which he ultimately declined, believing in the sustainability of his business model. “I saw Amazon’s interest as confirmation that I was on the right track,” he explained.
In hindsight, the founder shared valuable lessons from his journey. He cautioned against relying solely on a single platform for sales, as changes in policies or competitor actions can have dire consequences. He also advised entrepreneurs to consider acquisition offers seriously, as larger companies may replicate successful ideas and outspend smaller businesses.
“Making a lot of money quickly can create a false sense of security,” he warned, urging fellow entrepreneurs to save for emergencies and adapt swiftly to market changes. He concluded by acknowledging the silver lining in his experience: the opportunity to have received an acquisition offer from a giant like Amazon, which, despite the challenges, reaffirmed the potential of his business concept.