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The founder revealed how his home organizer company, which he built from scratch and earned Rs 20 lakh daily, faced a sudden crash.
Just when the business was growing, Amazon launched a competing brand.
An Indian startup founder recently shared his heartbreaking journey of business downfall, which used to generate Rs 20 lakh per day. The story shows how the founder’s home organiser company, which he built from scratch, faced a sudden crash. In 2017, while searching for affordable storage products for his apartment, he discovered overpriced items on Amazon. Taking a chance, he spent Rs 2.5 lakh to buy 300 products, which sold out in just 50 hours. He added more products and again, they sold out quickly. Just when the business was growing, Amazon launched a competing brand, which wiped out the founder’s revenue. The individual explained how Amazon crushed his dream of creating generational wealth.
Taking to Grapevine, he wrote, “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 Rs 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.”
“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 Rs 2.5 lakhs to buy 300 units across 5 SKUs. My average landed cost per piece was around $4–$5 (Rs 342-428) after factoring in shipping, customs, and fees, whereas I planned to sell them for $10–$12 (Rs 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 INR 7.5 lakhs. Same story – sold out fast,” the Amazon seller added.
In just two months, the business was making almost 20 lakh rupees a day on Amazon and Flipkart. With profit margins between 15% and 25%, he was earning Rs 3 to 5 lakh daily. The growth was faster than he ever expected. Soon, Amazon noticed his success, who offered perks like special status as a top seller and dedicated account managers with marketing advice. During his first trip to Yiwu, China, he planned to build direct relationships with manufacturers. He paid Rs 3 lakh for travel, accommodations and sample procurement, which was a small investment for him. At that moment, it seemed like the business could keep growing.
The individual shared that Amazon invited him to a seller summit in Singapore, where he met one of their senior vice presidents. They suggested a collaboration or acquisition. The offer was enough to secure his future. However, he turned it down, feeling confident in his business’s unstoppable growth. He saw Amazon’s interest as confirmation that he was on the right track. But soon, the e-commerce giant launched a similar product, with the same features and a lower price. His top-selling products lost their position in search results, his daily revenue began to drop and he struggled to maintain visibility.
He added, “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 warned that making a lot of money quickly can give a false sense of security, as things can change unexpectedly. He advised saving some cash for emergencies, even when things are going well. When a large competitor enters your market, it’s crucial to adjust quickly. Launch unique products that are hard to copy or focus on building a strong brand outside that platform. It’s easy to get comfortable, but paying attention to the market and always improving is key. Although Amazon’s move hurt his business, he realised he was lucky to even receive an offer from them.
