In a heartbreaking account shared on social media platform Grapevine, an Indian startup founder described the heartbreaking collapse of his once-thriving home organizer business that reached a peak revenue of Rs 20 lakh per day. Marked by rapid success and sudden decline, the entrepreneur's journey highlights the challenges small businesses face in the competitive e-commerce landscape.
The story began in 2017 when the founder, frustrated by Amazon's expensive storage solutions, decided to take a risk. He invested Rs 2.5 lakh and bought 300 units of affordable storage products, which sold out within 50 hours. Encouraged by this initial success, he quickly expanded his inventory, investing Rs 7.5 lakh to triple his stake. Within two months, his business was earning close to Rs 20 lakh per day on platforms like Amazon and Flipkart.
However, the entrepreneur's dream took a disastrous turn when Amazon launched a competing brand that mirrored his successful products. This move drastically reduced his visibility and income. “I went from selling products worth Rs 20 lakh a day to watching my dream of generational wealth crumble under Amazon,” he lamented. Despite the setback, he stressed that he is not financially broke but is struggling with the possible loss of wealth.
Reflecting on his experience, the founder noted that his business received attention from Amazon, perks such as top seller status and even an invitation to a sales conference in Singapore. There, he was offered a potential collaboration or acquisition, which he ultimately turned down, believing in the sustainability of his business model. “I saw Amazon's interest as confirmation that I was on the right track,” he explained.
Looking back, the founder shared valuable lessons from his journey. He cautioned against relying solely on a single platform for sales, as changes in policies or actions by competitors could have dire consequences. He advised entrepreneurs to seriously consider acquisition offers, as large companies can replicate successful ideas and spend more than smaller businesses.
“Making money quickly can create a false sense of security,” he warned, urging fellow entrepreneurs to save for emergencies and adapt quickly to market changes. He concluded by acknowledging the silver lining of his experience: the opportunity to receive an acquisition offer from a giant like Amazon that reaffirmed the potential of his business concept, despite the challenges.