The entrepreneur described how his home organizer business, which he started from the ground up and made Rs 20 lakh a day, abruptly failed.A startup founder from India recently recounted his tragic story of how his company, which once made Rs 20 lakh a day, went bankrupt. The narrative describes the abrupt collapse of the founder's home organizing business, which he created from the ground up. He found expensive stuff on Amazon in 2017 while looking for reasonably priced storage items for his flat. He took a chance and bought 300 goods for Rs 2.5 lakh, which sold out in 50 hours. Once more, 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.
"I went from selling 20L of products per day to watching my generational-wealth dream crumble under Amazon," he wrote on Grapevine. At its height, my modest brand of home organizers was making around Rs 20 lakh every day on Amazon and Flipkart. Since Amazon's entry into private labels imitated my success, that business is all but gone today, and I'm deciding what to do next. I don't work a 9 to 5 job or have any financial difficulties, yet I lost the opportunity to build genuine generational wealth before it could reach its full potential.
Everything started in 2017. I discovered these things were selling at exorbitant costs on Amazon India when searching AliExpress for inexpensive storage ideas for my condo. I took a chance and bought 300 units of five different SKUs for around Rs 2.5 lakhs. After accounting for shipping, customs, and fees, my average landed cost per piece was about $4 to $5 (Rs 342-428), but I intended to sell them for $10 to $12 (Rs 856-1027) in Indian rupees. All 300 sold out in just 50 hours, which shocked me. I immediately invested another INR 7.5 lakhs to expand my inventory. "Sold out quickly," the Amazon seller continued.
The company was earning around 20 lakh rupees per day on Amazon and Flipkart in just two months. He was making between Rs 3 and Rs 5 lakh per day with profit margins ranging from 15% to 25%. The rate of increase exceeded his expectations. Amazon soon saw how successful he was and gave him benefits like exclusive top seller status and marketing guidance from committed account managers. He intended to establish direct connections with producers during his initial visit to Yiwu, China. For travel, lodging, and sample acquisition, he spent Rs 3 lakh, which was a modest outlay of funds. The company appeared to be able to continue expanding at that time.
The person revealed that he received an invitation from Amazon to attend a seller summit in Singapore, where he had the opportunity to meet a senior vice president. They proposed a partnership or purchase. The offer was sufficient to guarantee his future. But he declined, believing that his company would continue to develop inexorably. Amazon's involvement, in his opinion, was proof that he was headed in the right direction. However, the e-commerce behemoth immediately released a comparable product that was less expensive and had the same characteristics. His daily earnings started to decline, his best-selling products lost their place in search results, and he found it difficult to stay visible.
"Did end up learning a few things," he continued. Don't put everything on one platform: If Amazon accounts for all of your sales, a single change in their policies or a move by a rival could destroy your business. In order to avoid becoming dependent on someone else's platform, always strive to develop your own website, email list, or community. Consider acquisition offers carefully. A major firm like Amazon may want to acquire you because they perceive a great opportunity. They can simply steal your idea and outspend you if you say "no." Always thoroughly consider your options and the repercussions before declining them.
The entrepreneur cautioned that rapid financial success can create a false sense of security because unforeseen circumstances can arise. Even when things are going well, he suggested setting aside some money for emergencies. It's imperative to make timely adjustments when a major competition joins your market. Introduce distinctive goods that are challenging to imitate or concentrate on developing a powerful brand outside of that platform. It's simple to settle in, but it's important to keep an eye on the market and keep getting better. Despite the fact that Amazon's action affected his business, he realized how fortunate he was to even have an offer from them.
Everything started in 2017. I discovered these things were selling at exorbitant costs on Amazon India when searching AliExpress for inexpensive storage ideas for my condo. I took a chance and bought 300 units of five different SKUs for around Rs 2.5 lakhs. After accounting for shipping, customs, and fees, my average landed cost per piece was about $4 to $5 (Rs 342-428), but I intended to sell them for $10 to $12 (Rs 856-1027) in Indian rupees. All 300 sold out in just 50 hours, which shocked me. I immediately invested another INR 7.5 lakhs to expand my inventory. "Sold out quickly," the Amazon seller continued.
The company was earning around 20 lakh rupees per day on Amazon and Flipkart in just two months. He was making between Rs 3 and Rs 5 lakh per day with profit margins ranging from 15% to 25%. The rate of increase exceeded his expectations. Amazon soon saw how successful he was and gave him benefits like exclusive top seller status and marketing guidance from committed account managers. He intended to establish direct connections with producers during his initial visit to Yiwu, China. For travel, lodging, and sample acquisition, he spent Rs 3 lakh, which was a modest outlay of funds. The company appeared to be able to continue expanding at that time.
The person revealed that he received an invitation from Amazon to attend a seller summit in Singapore, where he had the opportunity to meet a senior vice president. They proposed a partnership or purchase. The offer was sufficient to guarantee his future. But he declined, believing that his company would continue to develop inexorably. Amazon's involvement, in his opinion, was proof that he was headed in the right direction. However, the e-commerce behemoth immediately released a comparable product that was less expensive and had the same characteristics. His daily earnings started to decline, his best-selling products lost their place in search results, and he found it difficult to stay visible.
"Did end up learning a few things," he continued. Don't put everything on one platform: If Amazon accounts for all of your sales, a single change in their policies or a move by a rival could destroy your business. In order to avoid becoming dependent on someone else's platform, always strive to develop your own website, email list, or community. Consider acquisition offers carefully. A major firm like Amazon may want to acquire you because they perceive a great opportunity. They can simply steal your idea and outspend you if you say "no." Always thoroughly consider your options and the repercussions before declining them.
The entrepreneur cautioned that rapid financial success can create a false sense of security because unforeseen circumstances can arise. Even when things are going well, he suggested setting aside some money for emergencies. It's imperative to make timely adjustments when a major competition joins your market. Introduce distinctive goods that are challenging to imitate or concentrate on developing a powerful brand outside of that platform. It's simple to settle in, but it's important to keep an eye on the market and keep getting better. Despite the fact that Amazon's action affected his business, he realized how fortunate he was to even have an offer from them.
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