We encourage you to keep your popular products in stock while sending in fewer products that have low sales or are unproductive. Take action based on your aged inventory by visiting FBA Inventory Age. Start by looking at inventory that is aged over 365 days and will be subject to long-term storage fees. Reducing this inventory can help improve your IPI score and reduce costs.
Visit the Inventory Performance dashboard, and find your sell-through rate. If your sell-through rate is less than 2, or fair, we encourage you to work toward a minimum of a good rating as a way to improve IPI score. Click the Improve sell-through button on the Dashboard, which will take you to the Inventory Age page. You can sort the Inventory Age column by the oldest inventory, or sort the FBA sell-through column by lowest sell-through. Take immediate action on this low sell-through inventory.
Your in-stock rate indicates how much value you're getting out of your products by staying in stock on replenishable ASINs. For example, if you go out of stock on a popular product, your lost sales represent a missed opportunity to increase your IPI. However, short-term delays in restocking your replenishable ASINs will not result in IPI points being deducted for running out of stock. Over the long term, if you don’t replenish a popular product, the remainder of your inventory has low sales, or if your inventory is unproductive, your IPI score will be affected.
Because your IPI score is evaluated based on your recent and long-term inventory performance, recent changes in customer demand should not affect your long-term inventory performance. We recommend that you monitor indications of changing customer demand when making inventory planning decisions.
IPI is not adversely affected while you test new products.
Effective January 20, 2020, your IPI score considers both your recent and long-term inventory performance. Your IPI is based on the time duration that results in a higher score.
Our aim was to ensure that IPI represents your overall inventory performance. We’ve changed the IPI calculation so that scores are responsive to recent improvements and more stable for sellers with seasonal sales fluctuations or recent changes in inventory management.
For the majority of FBA sellers, the update resulted in a higher IPI score or no change at all.
Previously, your IPI score was based only on recent inventory performance. The calculation change benefits sellers with lower sales volume in their off-peak season and sellers taking action to improve their inventory performance.
Storage limits are calculated using several factors including:
No. There are two score check weeks that we announce and evaluate to determine your storage limits. You will need to reach an IPI score of 500 during either of these two score check weeks to be exempt from the storage limits. Your IPI score considers both your recent and long-term inventory performance, and is based on the time 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.