The Inventory Performance Index (IPI) is a score Amazon uses to measure how efficiently sellers manage their FBA inventory. It reflects how well inventory is balanced between meeting customer demand and avoiding excess or stranded stock. A low IPI score can lead to storage limits and higher costs, while a high score allows greater inventory flexibility. Amazon updates the IPI score regularly, making ongoing inventory management essential rather than a one-time optimization task.
- What it measures: IPI evaluates factors such as excess inventory, sell-through rate, stranded inventory, and in-stock performance.
- Why it matters: A low IPI score may result in storage restrictions, reduced capacity limits, and operational challenges for sellers.
- How to improve it: Sellers can boost IPI by increasing sell-through, removing or discounting excess stock, fixing stranded listings, and planning inventory more accurately.
