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Inventory Performance Index threshold will change to 450

by News_Amazon

Thank you for your cooperation as we implemented policies to ensure that all sellers have space for their products this holiday season.

Independent businesses like yours that sell on Amazon, nearly all of which are small- and medium-sized businesses, have surpassed $4.8 billion in worldwide sales so far this holiday season. That’s an increase of over 60% from last year. Congratulations, and thank you for providing terrific selection and low prices to customers.

As the new year approaches, we are lowering the Inventory Performance Index (IPI) threshold to 450:

  • If your IPI is 450 or above in week 51 of 2020, starting January 1, 2021, you will not be subject to storage volume limits.
  • If your IPI is below 450 in week 51 of 2020, you will continue to be subject to storage volume limits. We will notify you of your next period limits, which will go into effect on February 1, 2021.

We encourage you to continuously manage inventory. Visit your Inventory Performance dashboard for ways to increase your IPI by reducing excess inventory, improving your sell-through, or fixing stranded listings.

All products are still subject to restock quantity limits. You can view quantity limits for your products on Restock Inventory.

Tags: News and Announcements
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Seller_fGluy2Rns9Cfx
In reply to: News_Amazon's post

So it’s still SKU restricted, based on sales volume and 30 day turnover/rolling average?

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Seller_YjuFknGae3uIw
In reply to: News_Amazon's post

This notice mentions that limits will not be removed if your IPI is below 450 in week 51 of 2020, however what happens if you did not have limits previously but your IPI is now below 450 in week 51. Should we expect limits to come into effect January 1, 2021 if we were not limited previously?

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Seller_JIeNksGXsOpxp
In reply to: News_Amazon's post

when are you lifting amazon restock limits? theyre ridic

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Seller_1sEOX9Le0hANs
In reply to: News_Amazon's post

Can you elaborate more on “week 51”? The week when you first started selling?

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Seller_EocdHuFo3WSDi
In reply to: News_Amazon's post

I can work with this. I’ve learned how. But please Amazon, revisit this before next December. It was a nightmare restocking after Black Friday. Pallets slowed to a halt (even pallets sent as early as 11/15). I turned to UPS (at a very high shipping cost) with some success. But there are SKUs that won’t show the seasonal velocity until Black Friday and by then it is too late to send in the 1,250+ units that you knew all along customers would demand. As one of the results, customers paid far higher prices on seasonal merchandise than ever before.

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Seller_dwsUSo0kWZ2Wz
In reply to: News_Amazon's post

By taking 2 weeks to 2 months to receive our product and counting against our IPI, I’m sure we will all meet the threshold without any issues.

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Seller_cUJ5jli0k3Van
In reply to: News_Amazon's post

1-2 months ago,amazon double our Oversize storage to our limited account,will amazon now double our Standard-size storage?

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Seller_spBEmM4GC9jW1
In reply to: News_Amazon's post

Wow, let’s lower the bar some more for FBA sellers! Get rid of some of the China container shippers clogging up the system, and make room for those of us with real supply chains in our industries/markets.

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Seller_ODGnET55Q6yM6
In reply to: News_Amazon's post

Actually answering my own question I believe Amazon new requirements are only meant to relax some of the lower IPI accounts from storage limits. I think this new lower score only applies to accounts that were subject to storage limits after the summer checkpoints, not those accounts whose score lowered after the checkpoints. That would explain why they are communicating this after week 51.

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Seller_WSPtsrpYY83fr
In reply to: News_Amazon's post

So on February 1, 2021, if we are above 450 IPI Score we will have unlimited storage?

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