Amazon IPI Score: Optimization Tips That Work

This article gives you a clear, actionable guide to understanding and improving your Amazon FBA inventory performance index (IPI) score. You'll learn what IPI is, how it's calculated, common mistakes to avoid, and practical steps to keep your storage limits high and your operations smooth in 2026.

Why Amazon FBA Inventory Performance Index (IPI) Matters in 2026

The Amazon FBA inventory performance index (IPI) is a score that measures how well you manage your FBA inventory. It directly affects your storage limits: if your IPI is below the threshold (often 400, but subject to change), you may face storage restrictions, which can disrupt your sales. For buyers and sellers in cross-border e-commerce, maintaining a healthy IPI is important not only for avoiding extra fees but also for ensuring you have enough stock to meet demand.

In 2026, Amazon continues to refine its IPI calculation, placing more emphasis on sell-through rates and excess inventory. A low IPI can limit your ability to send new shipments, which is critical during peak seasons. Understanding how IPI works and how to improve it is a fundamental skill for any Amazon seller.

Key Categories / Types of Amazon FBA Inventory Performance Index (IPI)

The IPI is not a single metric but a composite of several factors. The main components are:

Excess Inventory: The percentage of inventory that has been in FBA for over 90 days and is not selling fast. High excess inventory lowers your IPI.

Sell-Through Rate: The number of units sold compared to the average inventory level over a period. A higher sell-through rate indicates better demand forecasting.

In-Stock Rate: The percentage of time you have your best-selling items in stock. Frequent stockouts can lower your IPI.

Stranded Inventory: Inventory that is not available for sale due to listing issues. Resolving these quickly helps your IPI.

• Excess inventory ratio: target below 20% of total inventory
• Sell-through rate: aim for at least 50% over 30 days
• In-stock rate: keep 90% or higher for top ASINs
• Stranded inventory: resolve within 48 hours

How to Evaluate Your IPI: Criteria and Trade-offs

To evaluate your IPI, check your Amazon Seller Central dashboard under 'Inventory Performance'. The score ranges from 0 to 1000, with 400 often used as a threshold for unlimited storage. But the exact cutoff can change, so verify current policy.

When improving your IPI, you face trade-offs. For example, aggressively liquidating excess inventory boosts your IPI but may incur losses. Similarly, ordering too little to keep inventory lean can lead to stockouts, hurting your in-stock rate. A balanced approach is key.

Typical criteria to monitor include the age of inventory (over 90 days is risky), the sell-through rate per ASIN, and the number of days of cover. Use Amazon's 'Inventory Age' report to identify slow movers.

• Check your IPI score weekly
• Review excess inventory report for items aged 90+ days
• Set restock alerts for best-selling items
• Use FBA Inventory Ledger to track movement

Common Pitfalls When Dealing with IPI

Many sellers make mistakes that lower their IPI. One common pitfall is over-ordering based on optimistic forecasts, leading to excess inventory. Another is ignoring stranded inventory, which can be fixed by relisting or correcting listing errors.

Also, some sellers focus only on clearing excess inventory but fail to maintain in-stock rates for popular products. This creates a seesaw effect on IPI. Avoid using aggressive price drops too often, as it may attract low-quality buyers and affect your long-term sales velocity.

Finally, not staying updated on IPI policy changes can hurt you. Amazon may adjust thresholds or add new metrics, so always read official communications.

• Don't ignore slow-moving inventory; create removal orders early
• Don't overstock seasonal items without historical data
• Don't let stranded inventory sit for weeks
• Don't rely on old IPI thresholds without checking current policy

Practical Recommendations and Next Steps

To improve your IPI, start by auditing your inventory monthly. Use Amazon's recommendations for 'Excess Inventory' and 'Restock' reports. Set a target sell-through rate of at least 50% for most products, and remove or liquidate items that haven't sold in 90 days.

For product selection, focus on items with proven demand and stable supply. Use tools like Jungle Scout or Helium 10 to analyze sales velocity. Also, consider using FBA's 'Inventory Planning' dashboard to set restock alerts.

As a next step, create a simple spreadsheet to track your top 20 ASINs: inventory age, sell-through rate, and days of cover. Review it weekly. If your IPI is below the threshold, prioritize improving excess inventory and stranded inventory first.

Remember, IPI optimization is a continuous process. Set a reminder to check your score every Monday morning.

• Audit inventory monthly and note items over 90 days
• Use Amazon's Restock Report to plan orders
• Set a goal to keep IPI above 500 (if possible) for buffer
• Consider FBA's 'Remove and Liquidate' options for slow movers

Key Takeaways

In summary, your Amazon FBA IPI score directly impacts your ability to store and sell inventory. By focusing on reducing excess inventory, improving sell-through rates, and avoiding stockouts, you can maintain a healthy score. Start by reviewing your current IPI, identify problem areas, and implement the recommendations above. Regularly monitor your score and adapt to policy changes to stay ahead.

This article is compiled by kuajing168.cn for reference only. Please refer to the official announcements of each platform for the latest policies and rates.