This page provides answers to common questions about Inventory Performance Index (IPI).
IPI score measures how efficient you are in managing your FBA fulfilment centre inventory and will be integrated it with Seller caps systems used to provide fulfilment centre level storage limits to sellers. Multiple factors could influence your IPI score, however, the most important ones are based on your actions:
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 score 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 sellers’ business is different, we recommend the following general guidelines to manage your inventory performance:
Newly created ASINs in their first 90 days do not affect your IPI score.
Once a removal order 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.
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.
You can improve your sell-through by increasing sales in relation to your on-hand inventory or removing inventory that is not selling. To potentially improve sales, consider your pricing and where applicable create sales, improve keywords, or advertise to promote your listings with Sponsored Products. Consistently sending high volumes of inventory to Amazon may impact your sell-through rate if your volume of sales is not increasing at the same rate over the same time period.
Sell-through rate is updated daily and looks at past 90 days of shipped units and average inventory over that same time 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: Let’s say that 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 120/80 = 1.5, as shown below:
|Total units sold (cumulative) in past 90 days||120 units|
|Date||Today||30 days ago||60 days ago||90 days ago|
|Inventory available||80 units||150 units
(new shipment of 150 units received)
|40 units||50 units|
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 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 becomes available.