Manage your FBA inventory effectively so that it leads to reduced overstock, better sell-through, and higher profits for your business. We measure inventory management through the Inventory Performance Index (IPI). This score is based on how well you do the following:
- Reduce your excess inventory to increase your profitability.
- Increase sell-through to balance your inventory weeks of cover.
- Ensure that your inventory is buyable by fixing stranded listings.
- Keep popular items in stock.
When you improve your IPI score, you can gain higher storage limits or be exempted from volume-based storage limits.
During our Amazon Accelerate virtual summit, we shared the actions that can help and hurt your IPI and the tools available on Seller Central to help improve your inventory management. You can view the Improving FBA Inventory Performance session in Seller University.
We would like to answer more of your questions.
Do old, deleted, listings negatively impact my IPI score?
No, IPI is based on your inventory performance of your on-hand inventory. Listings without ASINs, including non-replenishable products, with no inventory and no sales will not affect your IPI score. Ensure that when you delete listings, you do not have any units available for sale, this will cause the units to become “stranded”. Stranded units that are incurring storage fees without an active listing can impact your IPI score.
Once we move our IPI score above the required IPI threshold, will we get unlimited storage?
No. There are two score check weeks that we announce and evaluate to determine your storage limits each quarter. You will need to reach the required IPI score during either of these two score check weeks to be exempt from the storage limits in the next quarter. If your IPI score goes above the threshold only after the second score check week, you will still be subject to storage limits the following quarter. Your IPI score considers both your recent and long-term inventory performance, and is based on the duration that results in a higher score. Our aim is to ensure that IPI represents your overall inventory performance. We encourage you to maintain your IPI score in time for the next storage limit cycle.
If we have a SKU that is out of stock and inventory will not be replenished for 30 days, will closing that SKU until we replenish help our IPI score?
No. Flagging an ASIN as non-replenishable for short durations removes it from your FBA in-stock rate calculation, allowing you to better determine your in-stock rate, but does not impact your IPI score. In addition, ASINs, including non-replenishable products, with no inventory and no sales will not affect your IPI score.
For more information on IPI, visit Inventory performance.