Inventory performance

The Inventory Performance dashboard helps you identify opportunities and provides recommendations to potentially improve your Inventory Performance Index score.

The Inventory Performance Index, or IPI, is a metric to gauge your inventory performance over time.

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 your actions:

• Maintain a balanced inventory level between sold and on-hand inventory and avoid excess and aged inventory.
• Avoid excess and aged inventory.
• Fix listing problems.

For more information, go to IPI frequently asked questions.

There are three categories of recommendations to potentially help improve your IPI:

• Avoiding excess and aged inventory. A good guideline is to maintain enough inventory to cover 30 to 60 days of your expected sales.
• Improving your 90-day rolling sell-through by maintaining the right balance of inventory over the same time period
• Ensuring that inventory is buyable by fixing listings that are stranded

The Inventory Performance dashboard displays a performance bar for each of the three categories:

• Excellent (dark green)
  
  

• Good (light green)
  
  

• Fair (yellow)
  
  

• Poor (red)
  
  

The Inventory Performance page also provides additional metrics within each factor, which you can see by selecting Show more details. Clicking the Show more details box associated with each category will take you to related inventory management tools, which provide recommendations to potentially improve your performance.

We consider an item to be excess if it has over 90 days of supply based on the forecasted demand.

Track your Excess inventory percentage, which is the percentage of your FBA inventory units that have been identified as excess.

In addition to the performance bar, three related metrics are displayed with the excess inventory percentage on the Inventory Performance dashboard:

• Excess units is the number of units for which it costs you more to do nothing and pay the storage fees instead of taking an action such as marking down the price or removing inventory. This value is based on the customer demand for your product and product costs (including fees and the cost of goods).
• Estimated total storage cost is the sum of estimated costs that you would incur if you took no action and left your inventory idle in the fulfilment centre over three years. This includes monthly inventory storage fees and long-term storage fees.
• The Reduce excess inventory button shows how many SKUs you have with excess inventory. Click the button to go to Manage Excess Inventory and take action on the inventory.

When inventory is not available for purchase due to a listing problem, it results in lost sales and storage costs. This inventory is referred to as stranded inventory. Your Stranded inventory percentage is measured by the percentage of your FBA inventory units that are currently not available for purchase on Amazon.in.

In addition to the performance bar, two related metrics are displayed with the stranded inventory percentage on the Inventory Performance dashboard:

• Stranded units is your total count of units in a fulfilment centre without an active listing.
• The Fix listings button shows how many SKUs have units in a fulfillment center but do not have an active listing. Click the button to visit the Fix stranded inventory page. .

Maintain the right balance of inventory with your rolling 90-day FBA sell-through rate, which is your units shipped over the past 90 days divided by the average number of units on hand in our fulfilment centres during that time period.

In addition to the performance bar, two related metrics are displayed with your FBA sell-through rate on the Inventory Performance dashboard:

• Units sold (past 90 days) are the total FBA units sold and shipped in the past 90 days.
• The Improve sell-through button shows the number of ASINs that have an opportunity to improve sell-through. Click the button to visit the Inventory age page to see recommendations.