Inventory Performance Index

Inventory

IPI score from 0 to 1000 measuring how well a seller manages FBA inventory. Inputs: excess inventory, sell-through rate, stranded inventory, in-stock rate. Falling below the EU threshold (typically 400) caps storage allowance.

The Inventory Performance Index (IPI) is a score ranging from 0 to 1000 that evaluates how effectively a seller manages their FBA inventory across EU marketplaces, including DE, FR, IT, ES, UK, PL, and CZ. The IPI score is calculated based on several key metrics: excess inventory, sell-through rate, stranded inventory, and in-stock rate. Sellers must maintain an IPI score above the EU threshold, typically set at 400, to avoid restrictions on storage limits, which can significantly impact inventory management and sales potential. Falling below this threshold can result in reduced storage capacity, limiting a seller's ability to stock popular items. Amazon provides tools like the Inventory Performance Dashboard, which helps sellers monitor their IPI score and identify areas for improvement. Regular assessments of inventory levels and sales velocity matters, as the IPI score is updated weekly. Sellers who achieve higher IPI scores can benefit from increased storage limits and potentially lower storage fees, making it advantageous to optimize inventory practices. Additionally, competitors may use similar metrics to evaluate inventory efficiency, but Amazon's IPI is unique in its integration with FBA policies and performance metrics.

Relacionado: Stranded Inventory, Storage Fee