An Indian entrepreneur’s story of going from earning ₹20 lakh per day to losing his e-commerce business is making waves on social media. The cautionary account, shared by Grapevine founder Saumil Tripathi on X (formerly Twitter), details how the founder’s home organizer business was outmaneuvered by Amazon’s private-label strategy.

The Journey:

  • Rise: The founder started reselling budget-friendly storage items sourced from AliExpress in 2017. Direct sourcing from Chinese factories boosted margins, leading to exponential growth and a ₹20 lakh daily revenue.
  • Fall: Amazon proposed a collaboration or acquisition, which was declined. The e-commerce giant then launched its own private-label brand, Solimo, offering similar products at lower prices. This move dominated search results and undercut the founder’s business.

Lessons Shared:

The entrepreneur warned new founders to:

  1. Beware of acquisition offers—they might signal a larger strategy at play.
  2. Prioritize unique products to avoid competition with marketplace giants.

Public Reaction:

The post, viewed 1.2 million times and counting, sparked mixed reactions. While many sympathized, others noted that depending on marketplaces without differentiation was risky. “Amazon is not your partner; it’s a leverage game,” commented one user.

This tale underscores the challenges of thriving in competitive e-commerce ecosystems.