US Inventory Performance Index (IPI) Threshold Change for 2020 and Free Removals Promotion


#21

What was your highest IPI ?


#22

Did the IPI go back to previous levels after 3-4 weeks ?


#24

Yep, I’ve had my best month ever on Amazon yet my score keeps decreasing.


#25

You do realize that the holiday season for 2020 is over a year away right?


#26

Yep, next holiday season is a year away. But most people here attempt to have sales year round; and keeping the IPI up is harder during the slower months. So real time for it to start being a problem is in early 2020.


#27

If we expect slower months, than we should keep lower FBA inventory…problem solved.


#28

Exactly. If you handle it properly, then the IPI shouldn’t be a concern, whether it’s 350 or 400.

It seems that the IPI is to force people who otherwise wouldn’t run their business like a business to start doing it right.


#29

Not really–you also lose points if your inventory gets too low and/or you have stock-outs.


#30

This is why we need to adjust inventory to current sales…it does not get too low if sales drop.

Not sure that you are correct, because we can add/remove items from amzon recomendations.


#31

For example, if your IPI score is less than 400 during the week of November 11, 2019, you will be notified of your potential storage limits for Q1 2020. You will then have 6 weeks to improve your IPI score. If your IPI score is still below 400 during the week of December 23, 2019, storage limits will apply for Q1 2020.

The announcement is confusing, but from the example given it looks like the new 400 threshold applies for IPI scores THIS November/December which affect Q1 2020 limits.


#32

Welcome back…if you remember, 2 years ago we had few very active threads on this subject…


#33

I definitely remember; this was a big deal for a while.


#34

…and I still have the same opinions…


#35

@SEAmod

Someone needs to clarify when this takes effect. The announcement and example given seem contradictory. (The announcement says the change happens in 2020, the example uses November/December 2019 dates).

If our November/December 2019 scores need to be 400+ to avoid limits in Q1 of 2020, I respectfully suggest rewording the announcement to:

Effective IMMEDIATELY, we are changing the IPI threshold for storage limits to 400 (previously 350) .


#36

At this time of year, it gets a little trickier to send enough stock to not run out, yet not overstock. Of course we adjust to current sales–but, with them taking so long to process what’s sent in, a ‘run’ on a product can result in lapse of enough stock to fill orders. It was easier until the past couple years–we could ship to fba on Thurs or Fri, items arrive Sat and are ready to sell on Monday.
But sending in excess to be prepared can also have negative repercussions.

That doesn’t always work–in fact, their recommendations vary depending on when/where one looks. I’ve had the recommendation be just a few units one day and jump to a large number the next–on occasion, even the same day.
I’m just saying that the ipi isn’t only affected by excess, it can also be affected by too little.


#37

It is especially tricky when we are sent an e-mail saying we need to have our inventory sent in early to have it available for the holidays; it’s tough to send in enough inventory for the holidays without trashing the IPI score. The mid-November score may be close for me this year - especially if the new target is 400.


#38

That too.


#39

The IPI is calculated based on 3 months data, so, short term “overstock” inventory should not impact the IPI by much…


#40

read the dates they listed. IPI is figured in certain “blocks” of dates. not continuously.

this will give you 12 months to prepare for this time next year.


#41

It’s figured on a weekly basis (at least for me). However, it’s only if you are below the threshold both 6 weeks before the end of a quarter, and also at the end of the quarter, that you face any restrictions.

I guess I’m confused; is this the time of year that most people have trouble with the IPI? For me, my slow months are Feb-Jun; that’s when it’s hard to keep stuff moving (although personally I have no problem with IPI)