warren buffet mantra

 There are only two rules for making money

1    Never lose money

2    Never forget the first rule. Period

Helping you understand amazon seller sales growth in india ?

 

1. What is the growth constraints/bottlenecks for seller who is doing $2.5M per year on Amazon?

   1. size of the market (50%) - seller will grow with growth of the platform

      1. by the time someone will hit this run rate - they will be category leaders in 2-5 sub-categories and at least on primary category ( being leader in the primary category - now the limit is platform growth itself)

   2. operations ( 40 %)- amazon is not a stable business - it is similar to running a restaurant

      1. if you are not focussing on indicators , like an eagle - you competitor will fuck you

   3. capital - ( 10 %) - by this points seller has become really efficient at managing capital

      1. amazon payment cycle is predictable
      2. they can easily borrow short term funds and service the interest easily

2. What will be their EBITDA margin?

   1. 15 - 25 % ( in india at least)

3. What is their current growth rate?

   1. 30 % - 50 % - year on year - if stick to same categories in the same country
   2. 75-100 %
      1. if the seller starts in adjoining categories or
      2. if the seller chooses to sell in multiple countries ( it will far far higher than these percentages)

4. How will their grow/gowth rate if their bottlenecks are remove?

   1. already answered

After 25 crore.....next 100 is inevitable

first 5 crore is impossible 

next 20 crore is hard

next 100 crore is inevitable