IPI

The Inventory Performance Index (IPI) is a key metric for FBA (Fulfilled by Amazon) sellers, reflecting how efficiently they manage their inventory stored in Amazon's fulfilment centers. The IPI score ranges from 0 to 1,000, and Amazon uses it to assess storage efficiency and eligibility for unlimited storage.

Key factors that influence your IPI score:

1. Sell-through rate – How quickly inventory sells relative to stock levels
2. Excess inventory – Percentage of inventory sitting unsold for too long
3. Stranded inventory – Units that can’t be sold due to listing issues
4. In-stock rate – Ability to keep popular ASINs consistently available

Why IPI matters:

• Sellers with low IPI scores may face storage limits and higher fees
• A high IPI allows for unlimited FBA storage and better inventory control
• IPI is updated weekly, so sellers must continuously optimize performance

Thresholds: Amazon often sets a minimum IPI threshold (e.g., 400) each quarter. Falling below this can trigger inventory restrictions.

💡 Example: A seller with slow-moving products and stranded inventory sees their IPI drop to 370 - triggering a limit on FBA storage for the next quarter.

In short:
IPI is Amazon’s inventory health score for FBA sellers - influencing storage limits and helping sellers optimize inventory efficiency.