Amazon's Solimo VS Indian Entrepreneur: A $25K Daily Business Destroyed
An Indian entrepreneur’s journey from making INR 20 lakh daily ($25,000 daily) to seeing his business crumble has sparked a viral discussion online.
The founder, whose story was shared by Grapevine’s Saumil Tripathi on X (formerly Twitter), detailed how Amazon’s private-label strategy pushed his thriving home organizer business out of the market.
“I went from selling 20L of products per day to watching my generational-wealth dream crumble,” he wrote, describing his rise and fall.
The entrepreneur started his venture in 2017 after noticing the high demand for budget-friendly storage solutions. Initially investing INR 2.5 lakh to source products from AliExpress, he quickly scaled operations by working directly with Chinese factories. The business boomed, with products dominating their categories on Amazon.
Amazon eventually approached him with a nine-figure buyout offer, pitching his brand as a complement to its private-label strategy.
“They pitched me a collaboration or potential acquisition, hinting that my brand complemented their private label push,” the founder recalled.
Declining the offer proved costly. Amazon launched its own private-label brand, Solimo, selling similar products at lower prices and prioritizing them in search results. “If I reduced prices, they slashed margins further until I was forced to clear inventory at a loss,” he explained.
The founder described how his once-successful products were buried under Amazon’s strategy. “Today, that business is practically gone, undone by Amazon’s move into private labels.”
Check screenshot of the real X post:
The founder’s viral post has garnered over 1.2 million views and thousands of reactions. While many sympathized, others argued that relying solely on a marketplace without product differentiation is risky.
“Please don’t think that Amazon is your business partner. You spend on ads, and they get your customer’s data. Once you grow big, they will use your data and start selling themselves,” one commenter wrote.
The entrepreneur concluded with a warning for others:
“Be alert when an acquisition offer comes. Developing a unique product is essential to surviving on such platforms.”