Amazon's Private Label Offerings Lead to Indian E-commerce Startup's Collapse

New Delhi: An Indian e-commerce startup, Grapevine, which was once raking in Rs 20 lakh daily, has filed for bankruptcy after failing to compete with Amazon's aggressive private-label offerings.

The story of Saumil Tripathi, the founder of Grapevine, is a cautionary tale of how the e-commerce giant's strategies can spell disaster for local businesses. According to Tripathi, his brand was a market leader on platforms like Amazon and Flipkart until Amazon launched its competing Solimo private label.

Tripathi had founded Grapevine in 2017 after noticing that home storage products were being sold at high prices on Amazon India. He started importing products from AliExpress at affordable rates and selling them at competitive prices, generating a daily revenue of nearly Rs 20 lakh within two months.

However, when Amazon made him a nine-figure buyout offer and suggested a collaboration, Tripathi declined, only to see his business collapse soon after. Amazon's Solimo private label products started dominating search results, making it impossible for Grapevine to compete on price. The startup was eventually forced to sell its remaining stock at a loss.

Tripathi has attributed his loss to Amazon's move into private-label products, which shattered the potential for generational wealth he had worked hard to build. "This is my cautionary tale," he said in an interview. "Aspiring entrepreneurs must be wary of acquisition offers and focus on developing unique products to survive and thrive on competitive platforms."

Tripathi's experience serves as a warning to other Indian startups venturing into e-commerce, highlighting the importance of staying ahead of dominant players like Amazon.

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