IPI keeps going down -- will removing unsold inventory help?
Hello,
We have about 30 products enrolled with FBA. Our IPI score was originally around 640, but then it kept dropping due to the low sell-through rate. This is especially due to some of our low-performing products, of which we have sold next to no units over a period of 3 months.
If I remove the unsold inventory and leave only the products that are selling well in stock at the FBA fulfilment centres, will this help our IPI go up? Or will the removal of the inventory cause it to drop even further?
I have tried promoting sales in MANY different ways to help move the inventory, but nothing seems to have helped, so removing unsold products seems more sensible right now.
Thank you! 
8 replies
Seller_esvgLzKXw2YAl
IPI score is all about sell through. So this what you need to concentrate on.
So if you have a lot of poor performing items in stock, then it is going to bring your score down.
So the simplest thing to do, is to remove enough, that there is only a few weeks worth of stock there at most.
This will obviously effect your restock limits as well. In fact more so, as they very much depend on fast moving goods.
The rest is just common sense. Keep your goods in stock. Replenish often, rather than every now and again.
Seller_BS5lg2keRs2QO
The quick answer is that it should, but not always and not always quickly. For example, new ASINs are not included in IPI for their first 90 days.
The sell through rate is essentially the most important metric and is calculated by:
Summary
How is the FBA sell-through rate calculated?
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.
Seller_LvfwIPg8PzlRp
@Demel and @NEil – thank you both for taking the time to write a reply.
I’m trying to start some rather significant discounts to hopefully get things moving a bit. I’d rather earn £2 profit per unit and sell the lot than earn £6 profit per unit and not sell anything.
Is frequent replenishment in smaller quantities better than occasional replenishment in larger quantities? e.g. shipments of 300 units every 2 weeks compared to shipments of 900 units every 1 1/2 months? From what I’ve read, smaller and more frequent shipments make more sense as this should also improve the sell-through rate of the product.
Thank you again!
