IPI frequently asked questions

This page provides answers to common questions about the Inventory Performance Index (IPI).

The IPI score and the Inventory Performance dashboard are available only for sellers with a Professional selling plan.

Learn what IPI is and how it can help you keep the right amount of inventory on hand for customer orders.

IPI score measures how efficient and productive you are in managing your FBA inventory. Multiple factors could influence your IPI score, however, the most important ones are based on your actions:

• Maintain a balanced inventory level between sold and on-hand inventory and avoid excess and aged inventory.
• Avoid long-term storage fees.
• Fix listing problems.
• Keep your most popular products in stock at the right levels to meet customer demand and maximize customer satisfaction.

Your IPI score is designed to represent your overall inventory performance and considers both your recent and long-term inventory performance. When you take actions to improve your inventory efficiency, these actions can take time to result in IPI score improvements. The IPI is built to account for seasonality or unexpected disruptions in your business, allowing your long-term inventory performance to serve as your safeguard and prevent your IPI score from short-term fluctuations. This gives you more time to adjust your business and manage your inventory more efficiently in different circumstances.

While every seller's business is different, we recommend the following general guidelines to manage your inventory performance:

• Improve your 90-day rolling sell-through by maintaining a sell-through that places you in the green (or “good”) range year-round. This means you are balancing between holding too much inventory (excess) and too little inventory (scarce). Go to FBA Inventory to see recommendations on your inventory. You can filter by inventory age ranges or sort the Sell-through column to see products with the lowest sell-through. To increase sell-through, you can increase sales in relation to your on-hand inventory and remove inventory that is not selling. To reduce sell-through, follow Amazon’s restock recommendations, and ensure your products remain at healthy inventory levels.
• Reduce your excess inventory. A good guideline to avoid excess inventory is to maintain enough inventory to cover 30 to 60 days of your expected sales. Go to FBA Inventory to see recommended actions on products that are aged or overstock. Use Amazon Outlet to sell your overstock and out-of-season products. On FBA Inventory, select the recommendation filter Create Outlet deal to see products that are eligible for Amazon Outlet. In addition, you can use Multi-Channel Fulfillment to sell your inventory on other sales channels such as your own website.
• Reduce or avoid long-term storage fees by removing inventory before it reaches 365 days in a fulfillment center. You can set up your account to remove aged inventory automatically.
• Fix listing problems in a timely manner. Regularly check your Stranded inventory percentage. Stranded inventory means you have sellable products in an Amazon fulfillment center that don't have an active listing and therefore can't be sold to customers. If you have inventory that is incurring fees without the possibility of sales, this can reduce your IPI score, so it is important to fix listing issues quickly.

If you have a Professional selling account, you’ll receive capacity limits based on your IPI score, as well as other factors such as sales forecasts for your ASINs, shipment lead time, and fulfillment center capacity. By improving your IPI score, you can receive a higher capacity limit.

Newly created ASINs in their first 90 days do not affect your IPI score.

Once a removal order or liquidation request is placed, the inventory is no longer considered in your IPI score. Remember that actions taken today, like a removal order, will take time to reflect in your IPI score.

Your FBA capacity limit is influenced by your IPI score, as well as other factors such as sales forecasts for your ASINs, shipment lead time, and fulfillment center capacity. Go to FBA capacity limits for more information.

We will inform you four to eight weeks before the new period limit goes into effect what the IPI threshold will be and which IPI score-check weeks we will use to evaluate if you will be subject to storage volume limits. You can check your IPI scores for the current and past weeks on your Inventory performance dashboard. The week that applies to your current score is shown just above your score, and you can view past weeks by clicking Show details below your score.

In calculating your IPI score, we consider an item to be excess or overstock if it has over 90 days of supply based on the forecasted demand.

Your in-stock rate indicates in general how well you replenish your inventory to meet the demand from customers. The in-stock rate itself is not a direct input into your IPI score, and a low in-stock rate does not hurt your score, unless your most popular products consistently go out of stock, and the products that remain in-stock have low sales, or are excess or aged.

Marking a listing as non-replenishable does not affect your IPI score. It simply removes the ASIN from your FBA in-stock rate calculation to keep it accurate, allowing you to keep your in-stock rate up to date. Your on-hand inventory performance affects your IPI score.

Effective inventory management requires a balance between holding too much inventory (excess) and too little inventory (scarce).

A low sell-through rate indicates that inventory level is too high, and some inventory may be unproductive. The two main ways to increase sell-through are to increase sales in relation to your on-hand inventory and to remove inventory that is not selling. To improve sales, consider your pricing, and where applicable, create sales, improve keywords, advertise with Sponsored Products, or use Multi-Channel Fulfillment to sell your inventory on external channels. To learn more about removing inventory, go to Remove inventory (overview).

A very high sell-through rate can indicate scarce inventory levels, which can lead to slower customer delivery and out of stocks. To reduce sell-through, follow Amazon’s restock recommendations, and ensure your products remain at healthy inventory levels.

Sell-through rate is updated daily and looks at the past 90 days of shipped units and average inventory over that same period. We encourage you to try to maintain a sell-through rate in the green (or “good” rating) year-round.

Your FBA sell-through rate is your sold and shipped units over the past 90 days divided by the average number of units in stock in our fulfillment centers during that period. We calculate your available average units by taking a snapshot of your inventory levels today and 30, 60, and 90 days ago. For example, suppose you shipped 120 units in the past 90 days and had an average of 80 units available during that period. Your sell-through rate would be 120 divided by 80, which equals 1.5, as shown below.

Average available inventory = (50 + 40 + 150 + 80) / 4 = 80 units

Sell-through rate = 120/80 = 1.5

An IPI score is available only for sellers with a Professional selling plan, inventory at a fulfillment center, and recent account activity. If you are new to FBA or have not been active in the past 13 weeks, you may not have an IPI score until more data is available. If you use FBA only for Multi-Channel Fulfillment and do not sell in Amazon’s store, you also may not have an IPI score.