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


#82

Who sets the policy, we or our “employees”?

  1. Amazon revenues comes also from pick & pack fees and shipping.
  2. Not all handful sales are of $8.00…some are at higher prices.

#83

Me thinkx February would work better for us, as January is our best month and we tend to load up the warehouses for this. I see me getting dinged hard for excess inventory.


#84

The example in the notification explains that you need to have an IPI of 400 for the week of Nov 11 or Dec 23rd of 2019. So you do need to get it to 400 during this holiday season.


#85

Send in 45-60 days supply


#86

Right. And then you get the inventory there in time, pay all of the various storage fees, and Amazon puts your units on ‘reserved’ status until after the season passes. You try to place a removal order and Amazon cancels it because the units are “unavailable” for removal. So you got it in early, paid all the fees, weren’t able to sell the units during the target season, and then weren’t able to remove them to avoid additional storage fees. And you wasted all of your time doing all of this. This place is out of hand.


#87

As expected, my IPI is dropping like a rock as I stock up for the holidays. It looks doubtful that it will be at 400 after 2 more adjustments. I am still confident it will rebound by 12/31, but it is disconcerting to be below the limit for the first time.

My problem with this change is that it happened after the quarter started. I made holiday restocking plans in August based on the rules that were in place at the time and based on IPI experience from 2018. Then at a certain point in September I started executing that plan (sending in inventory).

It isn’t right to change the threshold 2 weeks into the quarter.


#88

Thats true, but 2 weeks will affect your IPI by not more than 6%-7%.


#89

Seriously?

That’s not the point. The point is that a plan had been made based on the rules that were in place and that a LOT of inventory had already been shipped based on the rules that were in place. By the time notice was given (2 weeks into the quarter) it was too late.


#90

This is also true, but don’t you have some safety zone for the unexpected ?


#91

Of course I do. This isn’t going to put me out of business. Absolute worst case is $10K in over-the-limit fees.

I posted my experience with this change and my opinion about how this change was handled on this Amazon-initiated thread because I think Amazon needs to hear our feedback.


#92

So, how do you know if you qualify for waived removal fees?


#93

As this promotion , is there any way to cancel it ? Because i have some news product ,i just creat few time removal.Actually ,i don’t want to join this activity.


#94

So after Christmas when my sales on Christmas products drops to nothing and I no longer replenish them, my score drops because I’m out of stock. That doesn’t make sense.


#95

@Haunchy_Cat IPI takes into account 3 months of data. For most of us IPI drops sharply in March, when the higher scores we usually get in late November and December fall out of the equation, in other words, are not counted in the average anymore.

If you have a risky IPI, you should consider removing the slow selling items from Amazon warehouses after the holidays or once your sales start to slow down considerably. That way, you would be able to balance your sell-through again, which I believe is the most significant factor (that we know of) in IPI calculations.

I would remove the items with the most volume (and relatively less money generating character), hence taking the most storage space for Amazon: because I believe that sales per volume/cubic feet is the secret ingredient in the IPI algorithm.


#96

It really does not make sense, because your assumption/conclusion is wrong.
IPI does not drop for what you don’t have in stock.
In general terms , it’s the ratio between what you have in stock and your sales.


#97

Being out of stock on a FBA item reduces the FBA in-stock rate. So it absolutely drops the score to be out of stock on Christmas items after Christmas.


#98

Look at my out of stock, and the IPI…


#99

The system should go by 20 points at a time not 50 points at a time I had my best month sales month this last month and my IPI went down 10 points. Makes no sense.


#100

It makes sense…as @DDS explained…

We don’t know your sales/inventory levels 2-3 months ago…
You also write…

Do you mean UNITS sold, or sales VALUE ?
big difference…


#101

I have the same influencing factors as you @SHAHAR (no stranded inventory) yet my IPI is at 362. Do you sell small items? I am asking this because on my other seller account, I sell very small and light items and have TERRIBLE sell-through rates (about 3X lower), in-stock inventory, I also have 70% stranded inventory yet my IPI is 600.

In this account with 362 IPI score, the items are 20X larger and have an average CBM of 0.75 whereas my other account has an average CBM of 0.02. I have a feeling that the IPI score is not even influenced by Sell Through Rate, Excess Inventory or Stranded Inventory but mostly by the amount of CBM you take up at Amazon’s warehouse.