This is how Amazon crushed dream of Indian entrepreneur who once earned Rs 2000000 daily, now earns Rs 0 due to...

It could be the story that many entrepreneurs dream about, but for one Indian startup founder, it was more akin to... a lesson learned with both positive and negative aspects. In 2017, while scouting around for affordable storage solutions for his apartment, this founder stumbled upon an idea. Outrageous prices were on Amazon, so he decided to take a leap of faith and initially spent ₹2.5 lakh to buy 300 pieces of the products, betting on instinct. He sold them all within 50 hours, much to his amazement.

The response encouraged him to reinvest this money threefold and scale his inventory to ₹7.5 lakh. Once again everything sold out. In two months, his business was making about ₹20 lakh a day on e-commerce platforms like Amazon and Flipkart. With profit margins of 15-25%, he would pocket ₹3-5 lakh a year. Life seemed pretty dreamy.

But often, success is tempered by challenges. As his brand of home organizers grew in popularity, Amazon took note of it. First, it seemed to be acceptance. Moreover, it offered him perks-special seller status and an account manager, and even an invitation to a summit in Singapore, where he met a senior executive, who proposed a partnership or acquisition. Sure of his momentum, he declined the offer.

Then there was the game-changer. Amazon launched its line of similar products that directly competitive to his top sellers and drastically under-cut in pricing. Instantly, his bestsellers vanished from the view, sales fell by the wayside, and his flourishing business began to disintegrate.

Looking back, he has this to say about experience:

• Do not put all your eggs into one basket: Setting your entire business in someone else's ecosystem will prove detrimental. Before you can even blink, a competitor's move or a policy change will overturn you completely.
• Take the acquisition very seriously: If Amazon goes after you, it'll be because it sees some value. And if you say no, it has enough resources to re-emulate and outclass you.
• Think outside the box: Invent products that are more difficult to replicate and create a strong brand presence that reaches outside of the platform.
• Save for a rainy day: Luck can sometimes lead to false security. Be prepared for the unexpected.

Despite his heartbreak, the founder chooses to take the high road and remain philosophical. A dream of generational wealth fades away from his hands, but he sees it as a privilege to be noticed by a company like Amazon. Now he is weighed down with the task of planning his next steps, the next one being more cautious and wise.