Storage limit changes and the Inventory Performance Index

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Seller_0pkMTMROIPEmY

Storage limit changes and the Inventory Performance Index

New email from Amazon today, this has been discussed on the forums but is now obviously policy;

Dear seller,

Today we are announcing changes to the FBA storage limit policy, based on a new metric: the Inventory Performance Index (IPI). The new policy takes effect on October 1, 2019.

IPI will help you better manage your FBA inventory and help Amazon continue to meet delivery promises to Customers. Based on IPI, more than 90% of sellers will receive unlimited storage.

Inventory Performance Index
IPI gathers data from your sales, inventory levels and fees to measure how well you are managing your FBA inventory across all European marketplaces (including the UK). The Inventory performance dashboard displays your IPI score along with key influencing factors, which are designed to help you prioritise actions to improve your score.

For more information, visit Inventory performance.

Storage limit policy changes

On October 1, 2019, storage limits will be:
• Based on the volume of your inventory (cubic feet), not units
• Classified by four storage types: standard, oversize, clothing and footwear
• Updated quarterly and be based on your IPI score from the previous quarter
If you maintain an IPI score of 350 or greater, you will have unlimited storage for the four storage types above. For full details, including the quarterly storage limits calendar and frequently asked questions, see

FBA Storage Limit Changes.
Thank you.
Sincerely,
The Fulfilment by Amazon team

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Seller_EJIX7rqDNQJi2

This policy was already in place on the Amazon USA marketplace for more than a year and based on what I read on the local forums, it is very important to carefully review all relevant Help pages and prepare for the change, as it can seriously affect your business, especially if there are slow selling or seasonal items in your inventory.

The help pages can be found on this link:

https://sellercentral.amazon.co.uk/gp/help/help.html/?itemID=G200685730&ref_=ag_G200685730_h_r0_cont_sgsearch

Here is the announcement help page:

https://sellercentral.amazon.co.uk/gp/help/help.html/?itemID=G93D6U2APR9UYBG5&ref_=ag_G93D6U2APR9UYBG5_h_r0_cont_sgsearch

Here you can review your current IPI score:

https://sellercentral.amazon.co.uk/inventory-performance/dashboard

And here is a very helpful main “IPI thread” from the USA forum where sellers discussed how they worked on figuring out the metric’s algorithm and managed their FBA inventory to ensure they meet the minimum 350 score target:

https://sellercentral.amazon.com/forums/t/fba-inventory-performance-index-ipi/397597/

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