What is the Inventory Performance Index (IPI)?

IPI is a score from 0-1000 that evaluates how efficiently you manage FBA inventory. It looks at sales velocity, excess inventory percentages, stranded/unavailable stock, and sell-through rates over a rolling period (typically 90 days). Amazon updates it weekly.

Why IPI Matters for Sellers

• High IPI (typically 500+) unlocks unlimited or higher storage capacity
• Low IPI triggers strict storage limits and higher fees
• Directly impacts long-term storage surcharges and overall profitability
• Rewards lean, fast-selling inventory and punishes dead stock
• Helps Amazon prioritize high-demand products in warehouses

Key Factors That Affect Your IPI Score

Main components include excess inventory percentage, sell-through rate, stranded inventory, and in-stock rate for popular items. Amazon doesn't reveal the exact formula, but these are the biggest drivers.

Best Practices to Improve and Maintain High IPI

• Keep excess inventory under 10-15% by forecasting demand accurately
• Maintain strong sell-through (aim for green zone on dashboard)
• Fix stranded listings and suppressed ASINs immediately
• Mark seasonal or one-off items as non-replenishable
• Use promotions or liquidations to clear slow movers quickly