This page provides answers to common questions regarding the Inventory Performance Index (IPI).
IPI score measures how efficient and productive you are in managing your FBA inventory. Multiple factors could influence your IPI score. However, the most important ones are based on your actions: 1) maintain a balanced inventory level between sold and on-hand inventory and avoid excess inventory (overstock), 2) avoid long-term storage fees, 3) fix listing problems and 4) keep your most popular products in stock at the right levels to meet customer demand and maximise customer satisfaction.
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 improvements. IPI 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 seller’s business is different, we recommend the following general guidelines to manage your inventory performance:
As IPI measures the efficiency and productivity of your FBA inventory over time, higher IPI scores usually indicate that you are managing your inventory more efficiently, thus optimising your sales and minimising your storage costs.
Refer to the question above for the best ways to improve your IPI score.
New ASINs in their first 90 days do not affect your IPI score.
Once a removal order or liquidation 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.
No. There are two score check weeks that we announce where we evaluate to determine your storage volume limits. You will need to reach the required IPI threshold during one of these score check weeks to be exempt from storage volume limits for the following period. Your current volume limits remain in effect until the new period starts. We encourage you to take actions to maintain your IPI score in time for the next storage volume limit cycle.
|Scenario||1st score check week||2nd score check week||Will you be subject to storage volume limits?|
|1||On or above IPI threshold||On or above IPI threshold||No|
|2||Below IPI threshold||On or above IPI threshold||No|
|3||On or above IPI threshold||Below IPI threshold||No|
|4||Below IPI threshold||Below IPI threshold||Yes|
We will inform you 4-8 weeks prior to the new period limit going into effect what the IPI threshold will be and which IPI score check weeks we use to evaluate if you will be subject to storage volume limits. You can check your IPI scores for the current and past weeks on your Inventory Performance dashboard. The week that applies to your current score is shown just above your score, and you can view past weeks by clicking on the Show details link below your score
Refer to the FBA inventory storage limits Help page for more information.
In calculating IPI, we consider an item excess or overstock if it has over 90 days of supply based on the forecasted demand.
Your in-stock rate indicates in general how well you replenish your inventory to meet the demand of customers. The in-stock rate itself is not a direct input into your IPI score and a low in-stock rate does not negatively impact IPI, unless your most popular products consistently go out of stock, and the products that remain in-stock have low sales, are aged or overstocked.
Marking a listing as non-replenishable does not impact your IPI score. It simply removes the ASIN from your FBA in-stock rate calculation to keep it accurate, allowing you to keep your in-stock rate up to date. Your on-hand inventory performance affects your IPI score.
The two main ways to improve sell-through are to increase sales in relation to your on-hand inventory or to remove inventory that is not selling. To improve sales, consider your pricing, and where applicable create sales, improve keywords, advertise with Sponsored Products or use Multi-Channel Fulfilment to sell your inventory on external channels.
Sell-through rate is updated daily based on the past 90 days of shipped units and average inventory over that same period. We encourage you to try to maintain a sell-through rate in the green (or ‘good’ rating) all year round.
Your FBA sell-through rate is your units sold and shipped over the past 90 days divided by the average number of units available at fulfilment centres during that time period. We calculate your average units available by taking a snapshot of your inventory levels today and 30, 60 and 90 days ago, and then we average those numbers. For example: You shipped 120 units in the past 90 days, and you had an average of 80 units available during that time 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 if you have a Professional selling plan, inventory at a fulfilment centre 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. If you only use FBA for Multi-Channel Fulfilment and do not sell in the Amazon store, you also may not have an IPI score.