P80

 P80 represents a statistical confidence level used in Amazon’s inventory planning models. It reflects a conservative forecast - helping Amazon and vendors plan for higher-demand scenarios while still avoiding overstocking.

If Amazon forecasts P80 = 1,000 units, it means:

• There's an 80% chance weekly demand will be 1,000 units or less
• There's a 20% chance demand could exceed 1,000 units

Why P80 is used:

• To provide buffered forecasts in volatile categories or high-growth SKUs
• To help vendors prepare for uncertain or peak-period demand
• To guide PO sizing, supply chain planning, and risk mitigation

Common P-levels in forecasting:

• P50 - balanced estimate (most likely scenario)
• P70 - moderately conservative
• P80 - more conservative
• P90 - highly conservative, used for risk-sensitive supply chains

Where you see P80 forecasts:

• Vendor Central forecast reports
• Flow planning and Buy Plan dashboards
• Automated replenishment models used by Amazon Retail

💡 Example: For a trending fitness tracker, Amazon sets a P80 forecast of 5,000 units per week in Q4 - giving the vendor confidence to plan for higher but controlled production.

In short:
P80 is Amazon’s forecast value where there’s an 80% likelihood that weekly demand will be at or below that level - helping vendors plan with extra confidence and avoid stockouts during uncertain or high-growth periods.