Healthy inventory management starts here

Healthy inventory management starts here

How it Works

Get your inventory in shape

Increase sales velocity

Minimize your costs

Improve your performance

Keep your top-selling products in stock, anticipate demand spikes, and reduce unproductive inventory.
Make inventory decisions based on insights to avoid long-term storage fees (LTSF) and holding costs.
Review and act on suggestions to raise product visibility and lift sales.

Take charge of your inventory

Manage Excess Inventory

Inventory Age

Keep your top-selling products in stock, anticipate demand spikes, and reduce unproductive inventory.
Review the overall age of your FBA inventory to help improve sell-through and avoid LTSF.

Fix Stranded Inventory

Restock Inventory

Resolve issues when listings are inactive. Correct missing sales information, including price and condition.
Keep your popular, non-seasonal, replenishable products in-stock and available to customers when they want to buy them. Ensure timely orders to your suppliers to avoid lost sales.

More steps everyone can take

Update product settings
Our tools are informed by your up-to-date product information like supplier lead time and reorder frequency.
Advertise
Help increase views and sell more units with high-visibility placements of targeted ads.
Discount
Create rules to automatically match lowest price or mark down based on your product sales velocity.
Automate removals
Always avoid LTSF by setting up automated removals.
Keep your catalog fresh
Tune in to what’s in demand, and replace low-selling ASINs with trending products.
Download the seller app
Get sales alerts and respond to buyers on the go with the Amazon Seller app.

Measuring your performance

Why IPI scores matter

When you maintain a score at or above 350, you get unlimited storage. A score below 350 could lead to storage limits, limits to your ability to send more inventory, and additional fees. See details >



Sellers at or above 350

Unlimited storage

No inventory storage overage fees




Sellers below 350

Limited storage

If over storage limit, unable to send more inventory

Subject to inventory storage overage fees ($10 per cubic foot over storage limit)

Improving your score

SAMPLE SCORE ONLY

Excess inventory percentage

FBA sell-through

Carrying too much inventory drags down your profits.
Balance your product volumes with sales. Keep inventory from aging and becoming excess.

Stranded inventory percentage

FBA in-stock rate

Fix listing problems to make items available for sale.
Keep best-selling items stocked to avoid lost sales and help improve sales rankings.
* Influencing factors are based on your performance over the past 24 hours.

Using your Inventory Performance Dashboard

How storage limits work

For FBA sellers with professional plans, storage limits are adjusted quarterly, and overage fees apply to sellers over their limit. On July 1, 2018, these limits go into effect for the first time.
IPI quarterly review schedule
Amazon will adjust storage limits on a quarterly cycle. If your score is less than 350 six weeks before the end of a quarter, you will be notified of your potential storage limits. If your IPI is still below 350 at the end of that quarter, limits apply for the following quarter. If you are at or above 350 on either date, you will have unlimited storage for the quarter.
Storage limits and fees
You will not be able to create a new shipment to Amazon unless your inventory level is below your storage limit. If your existing inventory exceeds your storage limits, you will also be charged an inventory storage overage fee.

Frequently asked questions

IPI AND STORAGE LIMITS

Why is Amazon making this policy change?
We are adjusting our FBA storage fees and policies to encourage improved inventory management, which will help your products be received and delivered to customers more quickly.
What is IPI based on?
Your score is based on how well you maintain healthy inventory levels, fix listing problems, and drive sales. We calculate your Inventory Performance Index for you.
What happens to my storage limits if I don’t have an IPI score yet?
In order for the new storage limit adjustment cycle to apply, you must have an Inventory Performance Index both six weeks before the end of the current quarter and on the last day of the current quarter. If you do not have an index score on either of these dates, you will receive the default storage limits. We will provide additional details on these default storage limits before they take effect on July 1, 2018. For more information, see FBA storage limits changes.

TAKING ACTION AND YOUR SCORE

What if my IPI is low or conflicts with the influencing factors listed on the Inventory Performance Dashboard?
The "top influencing factors" and recommendations provided on your Inventory Performance Dashboard are intended to help you identify ways to improve your inventory efficiency, but these may not align with your IPI score for a few reasons. First, the Inventory Performance Index is updated weekly based on your inventory’s performance over the last three months, meaning it relies on continual inventory management over several weeks to see improvements. The top influencing factors’ metrics represent a snapshot of your performance today and are not representative of your performance over time. Second, actions taken today will take time to have an impact on performance. For example, creating a sale will only become effective once the product begins selling at a higher rate. For this reason, it may take several weeks before actions have an impact that is reflected in the IPI score.
My score isn’t perfect, so why don’t I have recommendations to improve it?
The absence of recommendations only indicates that, based on your various tool settings and the characteristics of your inventory, there are no actions we believe you should take today. The Inventory Performance Index is updated weekly based on historical performance, meaning it relies on continual inventory management, and your score may be lower due to past performance. We suggest that you monitor your performance and check back for recommendations frequently to ensure you are maximizing the value of your inventory. Also, the recommendations are intended to provide you with information to help you manage your inventory levels, but use of these tools should not be a substitute for your own judgment about demand for your products.
I followed Amazon’s recommended changes, why didn’t my IPI change?
Following the recommendations provided may not immediately improve your score. One reason for this is because your score is based on historical performance and updated weekly. Actions taken today will take time to reflect in the score. Also, the recommendations are intended to provide you with information to help you manage your inventory levels, but use of these tools should not be a substitute for your own judgment about demand for your products.

PRODUCT SPECIFICS

Do non-replenishable products affect my IPI?
Non-replenishable products are not considered in your Inventory Performance Index once the inventory for those products is depleted (no sales and no inventory). If you have existing inventory of non-replenishable products, the volume of inventory as well as their sales volume will count towards your score, so you should be actively managing your available inventory to improve your score and minimize unnecessary storage fees.
Does the new storage limits policy apply to dangerous goods (also known as hazmat)?
No, dangerous goods storage limit adjustments will be handled separately from this new policy. See FBA dangerous goods (hazmat) program more information.