Inventory Performance Index Challenges
Posted: Tue Feb 11, 2025 9:20 am
FBA in-stock rate = (% of past 30 days SKU was in stock) X (60-day sales velocity) / (60-day sales velocity)
What Happens When Your IPI Score Goes Below the Threshold?
Amazon IPI Score: Key Metrics for Effective Inventory Management
Amazon has set a minimum threshold for IPI score that all sellers must meet. Currently, if you have an IPI score above 450, it means your FBA inventory is performing quite well. Similarly, if you score above 550, it indicates turkey phone number list your inventory is a top performer. However, if your score is below 350, it could lead to Amazon placing limits on your FBA storage and overage fees.
Let’s look at some of the major challenges of Amazon IPI.
Amazon doesn’t really disclose how it calculates your IPI score.
Sellers are often required to liquidate or remove their inventory to prevent storage fees. This can result in significantly high costs and losses for sellers.
The IPI score is primarily Amazon-centric. It means it does not account for sales lost in multi-channel businesses.
What Happens When Your IPI Score Goes Below the Threshold?
Amazon IPI Score: Key Metrics for Effective Inventory Management
Amazon has set a minimum threshold for IPI score that all sellers must meet. Currently, if you have an IPI score above 450, it means your FBA inventory is performing quite well. Similarly, if you score above 550, it indicates turkey phone number list your inventory is a top performer. However, if your score is below 350, it could lead to Amazon placing limits on your FBA storage and overage fees.
Let’s look at some of the major challenges of Amazon IPI.
Amazon doesn’t really disclose how it calculates your IPI score.
Sellers are often required to liquidate or remove their inventory to prevent storage fees. This can result in significantly high costs and losses for sellers.
The IPI score is primarily Amazon-centric. It means it does not account for sales lost in multi-channel businesses.