What Is the Amazon Replens Model?

Jimmy Smith's Guide to Getting Started with Replens

Jimmy Smith started out doing in-store retail arbitrage in December 2015. In under half a year, he grew that model to $15k a month. When he thought his earnings couldn’t go any higher, Jimmy discovered the Amazon Replens model. With Replens, he was able to quit his job, and now banks over $100,000 every single month! In a recent interview on the FastTrackFBA Youtube channel, Jimmy took the time to answer my questions, namely what is the Amazon Replens model? Of course, I had to share his expert insights with you here…

What is the Amazon Replens Model?

The first thing Jimmy told me was that Replens is short for replenish. The aim is to replenish your inventory with full-price items that you can mark up by 2-3%. It sounds unbelievable, but replenishing is a lot harder if you’re working with clearance stock. While finding full-price replenishable items is going to take a bit of hard work, it’ll give you a sustainable business foundation. With a 70% minimum ROI to his name, I’ll definitely take Jimmy’s word for it. 

Jimmy’s Tips for Getting Started with the Amazon Replens Model: 

• For replenishable, full-price items, look for readily-available niche products, or items from unusual local stores.

• You can opt to replenish products from giants like Walmart and Target, but be prepared for increased competition.

• Bundles or item multi-packs are an easy Replens hack since customers will pay a higher price for the convenience.

• Treat Replens products like traditional arbitrage products. Find a pre-made listing, and always check the Keepa charts.

• For the best ROI when you’re starting out, don’t go below 40%. Then, Jimmy recommends a sliding scale based on profitability. If profit is lower, ROI will need to go up.

• Don’t forget to check your old listings at regular intervals. If you’re consistently rediscovering products when they’re in low demand, your replenishable base will always be high.

What are the Pros and Cons of the Amazon Replens Model?

Once I had the basics down, Jimmy shared a little bit about why he loves Replens. He also shared a few common setbacks Replens sellers may come up against. Let’s dive deeper into these pros and cons here:

Pro – Lowest-Hanging Fruit Opportunity 

Flipping products is fine, but if you want a scalable business model on Amazon, the easiest option is Replens. You can easily find products with a decent ROI, and keep on top of your business’s growth with each new replenishable. Not to mention, with such a low bar for entry, anyone can take advantage of the Amazon Replens model. 

Con – Reliance on Other People’s Supply Chain 

If a seller’s relationship with a distributor isn’t up to scratch, or their prices fluctuate, it’s going to affect your profit. Replenishables will eventually become unprofitable, and there’s always a risk if you’re relying on the supply chains of other sellers. If you’re not consistently working to find in-demand replenishables, your growth will be limited.

Pro – Seven Figure Income Scalability  

Jimmy is far from the only Amazon Replens seller who’s made millions. Many people in his network have scaled their businesses, sometimes in as little as a year, simply by learning about Replens on YouTube. Also, Jimmy’s Replens course has over a thousand success stories, so while there’s competition, the industry is far from saturated. 

Con – Lack of Brand Control Compared to Arbitrage and Wholesale

You’ll need to be prepared for branding difficulties when it comes to selling replenishables. This is because you won’t have as much control over the brand as you would in a wholesale business model. You’ll be constrained by the marketing decisions of the original sellers, vulnerable to changes in overall brand image or reputation, and may suffer from product discontinuations. 

Pro – Become the Best at Wholesale and Private Label 

Once you’re an established Replens seller, brands are much more likely to offer you wholesale contracts. Plus, when it comes to lower-quality private label listings that are still making you money, you can learn about gaps in the market. Then, if you want to manufacture those products yourself, you’ll have a higher likelihood of success. 

Con – It’s a Grind 

Scaling the Amazon Replens model is not without hard work. Jimmy explained that finding replenishables means testing up to a hundred ASINs at any one time. You’ll also need to keep on top of logistics. In short, if you want to grow as a Replens seller, be prepared to put in the effort. 

However, even though there are limitations, the best way to learn what is the Amazon Replens model is to get stuck in. When you’ve overcome the potential pitfalls of Replens, you’ll be better prepared to tackle other scalable models. For Jimmy, starting with Replens is the best way to learn about Amazon reselling so that, eventually, you can open a profitable wholesale account.

What is the Amazon Replens Model Scalability? 

Right now, you’re probably wondering how high you can go with the Amazon Replens model. Well, Jimmy’s seen sellers consistently making over $200,000 a month. But, he thinks you could even push it to $300,000.

However, bear in mind that your scalability will be capped by certain factors. For Jimmy, he’s settled at $100,000 PCM and opted not to move to a bigger warehouse facility. This is because he prefers the added operational control he currently has. Instead, he’s chosen to focus on other investments like growing his wholesale businesses.

How to Find Replens on Amazon 

Finally, Jimmy gave me a masterclass in finding the most profitable replenishables on Amazon. He took me through high-competition, regional, and niche products to demonstrate what he looks for. 

Must-Have Tools for Amazon Replens Selling 

To analyze the potential profitability of replenishables, Jimmy uses the Keepa Chrome extension. In his opinion, this is essential! He also uses the fee calculators Rev Seller and Asinzen. If you’re just starting out, several free tools will offer the same insights. 

Checking Keepa Charts 

The first thing Jimmy does is scrutinize the Keepa data for 3 main considerations: 

• Is the product selling?

• Is the price stable?

• How many people are selling the product?

If the number of sellers is going up and the price is going down, then that replenishable is a no-go. 

Next, Jimmy checks the potential profit he can make from an item by comparing the initial cost with the current selling price. When we checked out the high-competition Nike shin guards, we found that there was a potential for ROI between 46% and 125%! This product was a definite buy for Jimmy. 

Then, we took a look at a local product, some Burman’s BBQ Sauce. As mentioned, finding products that only ship locally means you’ll be up against much less competition. In this case, there was potential for a 62% ROI. 

How Variation Affects Sales Rank 

Burman’s Sauce had product variations, so it was sold in bundles of 2, 3, and 4 bottles in a range of sizes and flavors. When looking at the Keepa charts, the sales rank can be unreliable as it may correspond to all variations. However, if the Buy Box price is stable over 12 months, you should be good to go. 

Plus, Keepa offers a variations tab where you can compare prices among variations to find the most profitable options. Adding variations to your catalog gives you more ASINs, a key factor in scaling. Opt for the variations that have reviews, and give products with 0 reviews a miss. 

Seller Number Declines 

When we took a look at the BBQ sauce seller numbers, Jimmy highlighted a plateau. This wasn’t concerning because the number of sellers had dropped off gradually. Generally, this means the product likely went out of stock for a while, so bear that in mind when making bulk purchases. However, Jimmy also highlighted that if seller numbers drop off all at once, there may be IP issues. Be warned. 

Transitioning to Wholesale 

With all that in mind, the Burman’s BBQ Sauce was a buy for Jimmy. I highlighted that the search terms in the product title, ‘Glucose-free’ and ‘Lactose-free,’ were a great starting point if you wanted to market the product yourself. Jimmy went one step further and shared that you can often find distributor contact information on the back of products. That way, if you wanted to develop a private label product, you’ve already got the beginnings of a network. 

Finally, we looked at a niche product, a burner for a Firebox. Though we couldn’t quite work out what the product did, Jimmy stressed that as long as the numbers look good, that’s all that matters. After making sure the part number was correct, we noticed the sales were slow but sped up in the summer, the price was stable, and the seller numbers were going down. Combined with a 48% ROI, this ticked all the boxes for Jimmy. 

Watch the full interview here: