Dark Side Of Amazon: An Indian Startup Founder Who Earned ₹20 lakh Per Day Revenue But Lost Business To Amazon

An entrepreneur who was once a top seller on Amazon muses on the possibility for generational wealth lost when his business failed.

The creator of a home organizer company admitted that he went from making ₹20 lakh in daily income to virtually losing the business within a few years. The man confessed on the career and salary discussion forum Grapevine, writing a lengthy article about his rise and fall on internet purchasing platforms.

“I went from selling 20L of products per day to watching my generational-wealth dream crumble under Amazon,” he told.

At its peak, his “humble brand of home organisers” generated approximately ₹20 lakhs in daily revenue on Amazon and Flipkart.

“Today, that business is almost gone, thanks to Amazon’s entry into private labels. I’m not penniless or working a 9-to-5, but the opportunity to create true generational riches was snatched from under me before it could completely manifest. “This is my cautionary tale,” he explained.

How It All Started

In 2017, the founder discovered high-priced storage products on Amazon India. He invested INR 2.5 lakhs to buy 300 products and sell them for ₹300-500. The products sold out quickly, prompting him to invest another INR 7.5 lakhs to triple his inventory.

“I took a leap of faith and spent about INR 2.5 lakhs to buy 300 products and sold them for ₹300-500. 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,” he said

After two months, he was making nearly 20 lakhs a day in revenue across Amazon and Flipkart. “My margins hovered between 15%–25%, which meant I was netting anywhere between ₹3–5 lakhs profit a day. It felt surreal,” he wrote.

What Amazon Offered

The entrepreneur claimed that Amazon became aware of his meteoric rise and expressed an interest in his business. Then came “top seller” perks and dedicated account managers who offered marketing advice.

With their help, he expanded and bought more products to be sold, even travelling to China to seal deals directly with manufacturers. Soon after Amazon made an offer to acquire his brand to accompany their in-house brand Solimo. The entrepreneur said the buyout offer was massive but he turned it down as he felt he was “unstoppable”, raking in crores of rupees as monthly revenue.

"I went from selling 20L of products per day to watching my generational-wealth dream crumble"

An e-commerce founder shared the story of their rise and fall on Amazon! pic.twitter.com/jvZl5PNDus

— Saumil Heard It (@OnTheGrapevine) December 26, 2024

When Downfall Started

A few months later, he said that Amazon’s Solimo had become a direct rival, providing similar products at a lower price. His daily revenue decreased, and the storage fees for his vast inventory of merchandise became a pricey burden. He ended up selling his wares at a cost-effective price.

“I’m not impoverished by any means; I still have personal money and assets from the peak years. But the opportunity to grow this brand into a business that could have supported me and my family for decades vanished. The point is, I am no longer on the verge of establishing a long-lasting empire. When you’ve had that type of success – flying to China, spending a lakh or two on just fresh samples, dealing in crores – it’s a huge adjustment to realize you’re back in “planning mode,” he added.