From Rs 20 Lakh Per Day To Zero...' - Indian Founder Says 'Amazon Killed' His Startup - See Post

The story of an Indian startup founder is gaining attention on his heartbreaking journey of business downfall, which once generated Rs 20 lakh per day. The founder shared his long story on X.

The story details the sudden collapse of the founder's home-organizing business, which he built from scratch. He discovered expensive items on Amazon in 2017 while searching for reasonably priced storage items for his flat. He took a leap of faith and purchased 300 goods for Rs 2.5 lakh, which sold out in 50 hours. Again, they sold out fast after he introduced more things. Amazon introduced a rival brand just as the company was expanding, wiping out the founder's earnings. 

The person described how Amazon dashed his hopes of generating money for future generations.

The Journey In Nutshell

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."

Within two months, he was making almost ₹20 lakh daily on Amazon and Flipkart. The profits stood at ₹3-5 lakh a day. The success did not go unnoticed, and Amazon gave him all the perks such as being a top seller and dedicated support. A visit to Yiwu, China, to build direct ties with manufacturers cost him ₹3 lakh—a small investment for rapid growth.

Later, Amazon invited him to a seller summit in Singapore and even proposed a collaboration or acquisition. He rejected the offer, as he was confident of his growth. However, soon Amazon launched a similar product at a lower price, which pulled down his products in search rankings. His revenue decreased, and he found it challenging to maintain visibility.

Lessons Learned

The founder shared his lesson and cautioned that rapid financial success can create a false sense of security.  Unforeseen circumstances can arise at times in the business landscape. Even when things are going well, he suggested setting aside some money for emergencies.

“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.", he added. 

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