- Your Amazon IPI Score (Inventory Performance Index) controls your FBA replenishment limits and storage fee surcharges.
- The score evaluates four core inventory health pillars: excess inventory, sell-through velocity, stranded inventory, and in-stock rates.
- Systematically optimizing sell-through and liquidating stagnant inventory protects working capital and expands FBA storage capacity.
Few operational bottlenecks paralyze an Amazon business faster than attempting to create an FBA shipment only to be blocked by restricted capacity limits.
Experiencing unexpected aged inventory surcharges directly erodes net margins and strains working capital.
Amazon utilizes algorithmic evaluation metrics to measure fulfillment efficiency, inventory turn velocity, and listing health. This combined metric is your Amazon IPI Score (Inventory Performance Index).
Managing this score requires proactive operational discipline. As an eCommerce Fractional CMO, I install systematic inventory governance frameworks that protect FBA storage capacity and minimize holding costs.
What is the Amazon IPI Score?
The Amazon IPI Score (Inventory Performance Index) is a benchmark scaled from 0 to 1000 that quantifies FBA inventory health. It indicates how effectively a brand balances inventory supply against buyer demand while maintaining active listing health.
How To Access Your Amazon Seller Central IPI Score:
- Log into your Seller Central administrative dashboard.
- Navigate through the primary menu: Inventory > FBA Inventory.
- Select Inventory Performance near the top navigation to view your current score and component breakdown.
When Is The Amazon IPI Score Updated?
The underlying component metrics updating your score are audited daily, whereas your official displayed IPI score updates weekly (typically every Monday).
When a seller’s score drops below 400, Amazon issues an automated performance notification. This initiates a six-week notification window to execute corrective inventory removals or sales acceleration before quarterly capacity limits apply.
Amazon IPI Score Key Operational Rules:
- Network Restock Limits Supersede IPI: Maintaining a high IPI score does not override system-wide restock limits applied across Amazon’s logistics network.
- 90-Day Historical Baseline: The algorithm evaluates inventory turn history for products in stock for 90 days or longer; newly launched SKUs do not immediately impact this calculation.
- Rolling Historical Averages: Sudden operational adjustments (such as mass removal orders or short-term sales spikes) require several weeks to reflect fully within rolling averages.
Amazon IPI Score Metrics
Your Inventory Performance Index is governed by four underlying operational drivers. These metrics directly dictate total FBA capacity allocation and monthly storage surcharge rates:
| Driver Metric | Algorithmic Definition | Target Operational Goal |
|---|---|---|
| Excess Inventory % | Percentage of FBA units where holding stock exceeds 90 days of forecasted demand. Evaluates capital efficiency. | Maintain Low (<10%) |
| FBA Sell-Through Rate | Total units shipped divided by average inventory held over a rolling 90-day window. Measures velocity. | Target Score >7.0 (Good: 2.0–7.0) |
| Stranded Inventory % | Percentage of units stored in FBA fulfillment centers unavailable for purchase due to listing errors or suppression. | Maintain 0% |
| In-Stock Rate | Percentage of time replenishable top-selling ASINs remain in stock over a rolling 30-day window. | Maintain High (>90%) |
How to Increase Your Amazon IPI Score
Improving your Inventory Performance Index requires optimizing both supply chain lead times and listing conversion rates.
Accelerating sales velocity and maintaining listing health directly improves organic search visibility (Amazon SEO) while lowering overall advertising acquisition costs (Reduce ACoS).
Executing these targeted inventory management strategies accelerates sell-through and protects storage limits:
| Core Strategy Focus | Actionable Execution Steps |
|---|---|
| Inventory Turn Frequency |
|
| Proactive Inventory Governance |
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| Sales Velocity Acceleration |
|
Frequently Asked Questions
How is Your Amazon IPI Score Calculated?
Amazon states: “The calculation is proprietary and will not be published, just as we do not publish the Buy Box algorithm.” However, tracking confirms it is heavily weighted by excess inventory percentages, 90-day sell-through rates, stranded inventory percentages, and replenishable in-stock rates.
What is a Good IPI Score on Amazon?
An optimal Amazon IPI score is 550 or higher.
- Below 400: Triggers storage limits, overage fees, and replenishment restrictions.
- 450 to 500: Average score range (no immediate penalties or incentives applied).
- 550+: Unlocks top-tier benefits, including reduced storage surcharges and expanded replenishment allocations.
How Do I Find My IPI Score?
Find your current score by logging into Seller Central, selecting Inventory > FBA Inventory from the primary navigation, and clicking on the Inventory Performance tab.
Do New Product Launches Affect My Amazon IPI Score?
No. The IPI algorithm evaluates historical sales data for products in stock for 90 days or longer. New ASIN launches do not impact your performance metrics during their initial launch window.
How Does Your Amazon IPI Score Impact Capacity Manager Storage Limits?
Your individual IPI score dictates account-level storage tier eligibility, but does not override global fulfillment network capacity limits established by Amazon inside the Capacity Manager.
Will Removing Inventory Improve My IPI Score?
Yes. Submitting removal or liquidation orders for aged inventory immediately lowers your Excess Inventory Percentage and improves your Sell-Through Rate by reducing the average inventory denominator.
Does Reserved Status Count Against My IPI Score?
Not directly. However, when units remain locked in reserved inventory status (specifically FC Processing), they cannot be purchased by shoppers. This depresses sales velocity, which indirectly lowers your overall sell-through rate.