Key Takeaways
- Your Amazon IPI Score (Amazon Inventory Performance Index) controls how much inventory you can send into Amazon FBA as well as the amount of inventory storage fees you will pay.
- The Amazon IPI Score is a collective of metrics that tell you as an Amazon Seller how well you are doing at selling through inventory, staying in stock and the quality of the inventory you’re sending in that can actually be sold.
- Managing your Amazon IPI (Inventory Performance Index) Score is critical to success in Amazon FBA.
In over 10 years as an eCommerce Fractional CMO, Amazon Consultant, and eCommerce Marketing Consultant, not to mention CEO, I’ve seen just about every mistake and the lessons from them. That means you get all the learnings without the scars.
I can assure you that there are few pains worse to Amazon sellers than trying to send in an FBA shipment and you can’t because you don’t have enough storage space.
Or, you check your storage fees and see them significantly higher than they should be.
This is how Amazon FBA works, using metrics to determine if you are selling through your inventory efficiently, keeping your inventory in stock and sending in sellable quality inventory; the Amazon IPI Score or, Amazon Inventory Performance Index.
Luckily, it doesn’t have to be painful.
That’s why I put together this in-depth guide of action items you can use TODAY to increase your Amazon IPI score.
What is the Amazon IPI Score?
The Amazon IPI Score (Inventory Performance Index) is a number between 0 – 1000 that measures Amazon FBA inventory health. Amazon IPI indicates how well of a job the seller is doing at selling through their inventory, remaining in stock and providing Amazon FBA with inventory in sellable condition.
How To Access Your Amazon Seller Central IPI Score:
- Log into Seller Central
- Access the Main Navigation and Select Inventory –> FBA Inventory
- You’ll find your Amazon IPI Index near the top of your screen by selecting Inventory –> Inventory Performance
When Is The Amazon IPI Score Updated?
The four main metrics that make up the Amazon IPI score are updated daily whereas the final IPI score is updated weekly, typically on a Monday.
Amazon sends a notification to sellers with scores below 400 after their first calculation. This gives you a grace period of six weeks that you can use to improve and bring your score back up before the end of the quarter.
Amazon IPI Score Need To Knows:
- When Amazon limits replenishing stocks, your IPI rate won’t influence ASIN limitations. In other words, even if you have a strong IPI, Amazon-wide replenishing stock limits will still apply.
- The platform only considers the history of sales of goods in stock within the last 90 days and above. In other words, new product launches do not affect this number right away.
- Both historical and recent sales and storage activity influence Amazon’s IPI. In other words, quick changes like inventory removals or sudden spikes in sales will not reflect right away.
Amazon IPI Score Metrics
Your inventory performance index on Amazon is made up of four metrics. These IPI metrics impact:
- How much storage capacity you will have in Amazon FBA.
- How much you will pay in storage fees.
In short, the Amazon IPI score metrics tell you how good of a job you’re doing at managing your Amazon FBA inventory.
| Metric | Definition | Goal |
|---|---|---|
| Excess Inventory % | Inventory with >90 days supply based on forecasted demand. Measures how well you manage on-hand stock. | Keep Low |
| FBA Sell-Through | Units sold vs. initial inventory over the last 90 days. Measures sales velocity. | Score of 7+ |
| Stranded Inventory % | Inventory in FBA that is not available for purchase due to listing errors. | 0% |
| In-Stock Rate | Percentage of time your replenishable FBA ASINs have been in stock during the last 30 days. | Keep High |
How to Increase Amazon IPI Score
While your Amazon Inventory Performance Index Score is crucial to your success selling on Amazon FBA, it can be difficult to manage.
Fortunately, when you improve your Amazon IPI score, it comes with additional benefits like:
The reason for this is that increasing your Amazon IPI score not only boils down to staying in stock but getting good at sell-through.
Since you’ll be working on your sales and Conversion Rates are critical for Amazon SEO and Amazon Advertising success, that means you will not only sell more, but reach more customers as well.
This is how.
| Strategy | Actionable Steps |
|---|---|
| Inventory Turn Frequency |
|
| Inventory Management |
|
| Increase Sales Velocity |
|
Frequently Asked Questions
How is Your Amazon IPI Score Calculated?
According to Amazon: “The calculation is proprietary and will not be published, just as we do not publish the Buy Box algorithm.” However, we know it is heavily weighted by excess inventory, sell-through rate, stranded inventory, and in-stock rate.
What is a Good IPI Score on Amazon?
A good Amazon IPI score is 550+.
Under 400: Penalties (Storage limits, higher fees).
450 – 500: Average (No penalties, no incentives).
550+: Benefits (Reduced storage fees, unlimited restock limits).
How Do I Find My IPI Score?
You can find your Amazon IPI Score by Logging into Seller Central, Accessing the Main Navigation and Select Inventory -> FBA Inventory, then you’ll find your Amazon IPI Index near the top of your screen by selecting Inventory -> Inventory Performance.
Do New Product Launches Affect My Amazon IPI Score?
No, the platform only considers the history of sales of goods in stock within the last 90 days and above. In other words, new product launches do not affect this number right away.
How Does Your Amazon IPI Score Impact “Capacity Manager” Storage Limits?
Your Amazon IPI Score does not impact global Amazon FBA capacity limits found in the Amazon FBA capacity manager storage limits. Limitations from Amazon that affect all sellers still apply regardless of your individual score.
Will Removing Inventory Improve My IPI Score?
Yes. Removing excess inventory improves your “Excess Inventory Percentage” and your “Sell-Through Rate” (by lowering the denominator of average inventory held). This is one of the fastest ways to boost your score.
Does Reserved Status Count Against My IPI Score?
Not directly. However, when your products are in reserved inventory status on FBA, particularly FC Processing status, they are unavailable for sale. This can hurt your sell-through metric over time, which does negatively impact your Amazon IPI Score.
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