Glossary Term
IPI (Inventory Performance Index)
An Amazon metric used to measure a seller’s inventory management efficiency. A low IPI score can lead to storage limits and higher fees.
The "Scorecard" for FBA Sellers
Your IPI score (ranging from 0 to 1000) tells Amazon how well you manage your stock. If you have a high score, you get unlimited storage. If it drops below a certain threshold (usually 400), Amazon will limit how much you can send to their warehouses, which can cripple your business during peak seasons like Q4.
Factors Influencing Your IPI
- Excess Inventory: Don’t let items sit for over 90 days.
- Sell-Through Rate: How fast you move stock compared to what’s on hand.
- Stranded Inventory: Products with no active listing that are still in the warehouse.
- In-Stock Rate: Keeping your popular items available.
Optimizing Your Flow
The faster you can prep, label, and ship your restock units, the better your sell-through rate will be. Automation in the labeling phase ensures you never miss a restock window due to operational delays, keeping your IPI in the healthy "green" zone.