What’s worse is that Amazon rolls out these new inventory restriction updates without prior warning, so you could go over the limit overnight. Implemented in April 2021, the new account-level storage-type restock limits have caused many sellers to reluctantly pull a lot of inventory from FBA to make space for their best-selling stock that they need to send in. Related: 4 Ways to Improve Amazon IPI Restock Limits Monitoring your inventory levels is imperative to maintaining and improving your IPI score. Get rid of excess units, fix stranded inventory, improve your sell-through, and automate your restocking system to stay in stock. A 100% in-stock rate means you haven’t gone out of stock on any of your products. In-Stock Rate: This indicates how efficient you are at restocking your products.Sell-Through Rate: This metric reflects the number of units sold over the last 90 days divided by the average units in stock during that period.Products may get stranded because of listing errors, incomplete listing information, pricing errors, or certain listing restrictions. ![]() Stranded Inventory: This is the number of units without active listings but with inventory still stored in Amazon FBA warehouses.Inventory can be deemed “excess” if it has more than three months’ worth of supply based on Amazon’s forecasted demand. Excess Inventory: This metric refers to the number of units Amazon considers as “excess”, or more than can predictably be sold within a reasonable amount of time.Your IPI is calculated based on the following factors: This means you must get your IPI score above the minimum threshold to keep from being strapped with storage volume restrictions. If you do not raise your score before the quarterly cutoff date, your restrictions will be locked in for the next 3 months. For this reason, monitoring this metric becomes extremely important, especially to those hovering in the danger zone around 450. ![]() Conversely, anything below 450 will be subject to storage volume limitations, meaning, you will be restricted as to the amount of storage space you are allowed within Amazon’s FBA warehouses.Īmazon evaluates your inventory performance consistently but locks in your score every three months (quarterly). Anything above this score is considered “good” and comes with unlimited storage space for Standard-Size, Oversize, Apparel, Footwear, Flammable, and Aerosol storage types. You can check your IPI score under your seller account’s Inventory Dashboard.Īs of October 2021, the minimum threshold score is 450, though this changes from time to time based on Amazon’s current policies. There are two factors that monitor and influence your inventory management performance within the Amazon platform: Inventory Performance Index (IPI)Īmazon uses this advanced scoring system (0 to 1,000) to evaluate how well you’re managing your inventory. Top Amazon Performance Metrics to Track Inventory Management Metrics
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