Inventory Performance Index

The Inventory Performance Index (IPI) is a metric used by Amazon to assess your inventory management performance over time. It measures how efficiently you manage your Fulfilment by Amazon (FBA) inventory and is influenced by various factors, including your actions as a seller. Here are some key points about the IPI and its components:

**Factors Influencing Your IPI Score:**

1. **Balanced Inventory Levels:** Maintaining a balance between sold and on-hand inventory, avoiding excess and aged inventory.

2. **Avoiding Long-term Storage Fees:** Ensuring that your inventory doesn't incur long-term storage fees.

3. **Fixing Listing Problems:** Resolving any listing issues, such as stranded inventory.

4. **Keeping Popular Products in Stock:** Ensuring that your best-selling products are in stock to meet customer demand and maximize customer satisfaction.

**Categories Affecting Your IPI Score:**

There are four categories of recommendations to help improve your IPI score, each with its own performance bar on the Inventory Performance dashboard:

- **Excellent (dark green)**

- **Good (light green)**

- **Fair (yellow)**

- **Poor (red)**

Within each category, there are additional metrics and tools to help you make improvements:

1. **Excess Inventory Percentage:**

- An item is considered excess if it has over 90 days of supply based on forecasted demand.

- You can track your excess inventory percentage, which is the percentage of your FBA inventory units identified as excess.

- Additional metrics related to excess inventory include "Excess units" and "Estimated total storage cost."

- You can use the "Reduce excess inventory" button to manage excess inventory.

2. **Stranded Inventory Percentage:**

- Stranded inventory refers to inventory that is not available for purchase due to listing problems.

- The percentage of FBA inventory units that are currently stranded is measured.

- Metrics related to stranded inventory include "Stranded units quantity."

- You can use the "Fix listings" button to address stranded inventory issues.

3. **FBA Sell-Through Rate:**

- The rolling 90-day FBA sell-through rate is calculated as units shipped over the past 90 days divided by the average number of units on hand.

- Metrics related to sell-through rate include "Units sold (past 90 days)."

- You can use the "Improve sell-through" button to see recommendations for improving this rate.

4. **FBA In-Stock Rate:**

- This measures the percentage of time your replenishable FBA ASINs have been in stock during the last 30 days.

- Metrics related to in-stock rate include "Estimated FBA lost sales in the last 30 days."

- The "Restock today" button indicates the count of SKUs that may need to be restocked to avoid going out of stock.

Improving your performance in these categories can positively impact your IPI score and enhance your overall inventory management on Amazon. Monitoring these metrics and following the recommendations can help you maintain a healthy IPI score.