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This article applies to selling in: India

IPI frequently asked questions

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

How is IPI score calculated?

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:

  • 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.

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.

What’s the best way to improve my IPI score, and what should I prioritise?

While every sellers’ 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. For more information on recommendations on your inventory, go to Inventory age. You can sort the FBA sell-through column to see products with the lowest sell-through. The two main ways to improve sell-through are to increase sales in relation to your on-hand inventory and to remove inventory that is not selling.
  • 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. For more information on recommended actions on products that are overstock, go to Manage Excess Inventory.
  • 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.

Do new ASINs affect my IPI score?

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

Are removals included in IPI?

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.

Why is my product showing as excess after being recently sent to a fulfillment center if I plan to sell it over the next 100 days?

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.

How can I improve my sell-through rate?

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.

How is the sell-through rate calculated?

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

Why don’t I have an IPI score?

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.

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