IPI threshold change- increased to 500


#1

Hello from Fulfillment by Amazon,
Given the unprecedented challenges the COVID-19 pandemic has placed on all of us, we are preparing early to deliver a great holiday season for our customers and selling partners—building out capacity as quickly as we can so we can deliver products customers need and want directly to their doorsteps and help you continue to grow your business.

We’ve been investing heavily for many years to support selling partners like you, and over the course of 2019 and 2020, we’ll invest more than $30 billion to build capacity, tools, services and programs for sellers, as well as to hire more people. We’re on track to open 33 new fulfillment centers in the US this year, which will increase peak fulfillment center standard-sized product storage capacity by nearly 35 million cubic feet more than last year.

Since the pandemic hit, COVID-19 has impacted supply chains around the world, and we’ve all had to make fast adjustments. Amazon hired more than 175,000 employees and invested billions of dollars in COVID-related initiatives to help meet increased customer demand and protect the health and well-being of our employees as they pick, pack, and ship your products to customers. As a result, selling partners have had record sales on Amazon and continue to account for more than 50% of units sold in our store.

Even though it’s July, we’re preparing early for the holiday season to meet sustained increased demand, and have already reduced our own Retail product ordering to accommodate more of your products and help you continue to see sales growth.

To ensure we’re ready to best serve all of our selling partners and customers, we are introducing the following adjustments as we begin our ramp into peak:

Inventory Performance Index threshold change
We are working to manage inventory performance to ensure all products have space available during peak. To enable this, we are changing the IPI minimum threshold requirement to 500. Sellers below 500 will be subject to limits effective August 16, 2020 through the end of the year.

The majority of sellers will not be impacted by this change. Most sellers with IPI scores below 500 will have more storage space than last year.

You can improve your IPI by following guidance on improving sell through or reducing your excess and stranded inventory in the Inventory Performance Dashboard.

Quantity limits
To maximize selection for customers during peak, we are introducing ASIN-level quantity limits on products in FBA. Most products will have enough space available for over three months of sales.

You can view quantity limits for your products on the Restock Inventory page and the Restock report. We will continually review this and, when possible, make adjustments to allow for more of your products.

Free removals promotion
To help you avoid storage fees for products that have not been selling and create room for more productive inventory, we are offering a free removal fee promotion for a limited time. We will waive your fees for any removal order submitted for inventory in our fulfillment centers beginning July 14, 2020.

To create a removal order, please visit Inventory Age and choose Create removal order from the menu next to any FBA item in your inventory.

For further guidance, you can review frequently asked questions on this Help page.

While no one has a perfect playbook for how to respond to COVID-19, our commitment to supporting your business has never been more steadfast. We will continue to make adjustments to best support your business and keep you informed along the way. We appreciate your partnership as we improve the efficiency of our fulfillment network to prepare all selling partners for a successful peak season.

As always, thank you for participating in FBA,

The Fulfillment by Amazon team


#2

Quantity limits are going to kill us. We sell seasonal products that only sell during Nov and Dec. 30,000 units.


#3

Besides the quantity limits and changing the IPI treshhold, amazon does not acknowledge that since mid June some shipments are received weeks after delivered (and those FCC were efficient before that)… how can a seller plan anything ? ship more to FBA in hope that the shipments will be put into inventory ? not shipping ? sell FBM ? order more products from suppliers or not ?
These issues have to be addressed by amazon if they want sellers to be able to plan ahead.


#5

Wow. Terrible planning. So we go from IPI isn’t an issue due to the pandemic (and factored quarterly) to IPI requirement higher than ever essentially effective immediately.


#6

Just saw that. We are already 2 weeks in this quarter, and we expect 400 IPI for unlimited storage. Now they tell us that we need 500 and good luck with that.


#7

Amazon: Let’s change the dashboard so that you can’t even find IPI and then trick sellers into thinking its not an issue before raising IPI to 500


#8

Same here. We haven’t seen over 500 in two years, especially now with how things are slow with Amazon. We tried to remove Easter items back in the beginning of May and still have not received our items back. We opened cases on 12 removal orders so far and all we get back is the Thank you for your continued patience emails. Out of the 700 items we had to remove from our Easter stock, we received about 50 so far. This is the same Easter stock we thought we were lucky enough to get into FBA before they shut us out only to find out once the items were received, the expected delivery dates were one to two weeks after Easter. How funny is that.

It’s really not the removal process for the seasonal items, it’s that we are penalized for not restocking inventory on items that will clearly not move. That’s the biggest problem with this platform. So I guess we will be bidding farewell to FBA. We are also FBM but that does not inventory nearly as fast as FBA, Oh well. It was nice while it lasted.


#9

Hello Sellers,

Moderators are closing this topic and referring you to the main thread where you can make your comments and engage other sellers in discussion.

Susan


closed #10