Amazon FBA IPI: Plan Your Next 90 Days

This article provides a practical 90-day plan for managing your Amazon FBA Inventory Performance Index (IPI). You'll learn what IPI means, why it matters in 2026, how to evaluate your score, common pitfalls, and concrete steps to improve or maintain compliance. Whether you're a seller or a buyer, this guide offers specific criteria and actionable checks.

Why Amazon FBA IPI Matters in 2026

As of 2026, Amazon continues to use IPI to measure how well you manage FBA inventory. A score above the threshold (typically 400-500, but subject to change) avoids storage limits and extra fees. For sellers, a low IPI can lead to overage fees and reduced storage capacity, directly impacting cash flow and sales. For buyers, IPI indirectly affects product availability and pricing, as sellers with poor IPI may face stockouts or higher costs that are passed on.

In cross-border e-commerce, where lead times are longer, maintaining a healthy IPI is essential. Amazon's storage limits are often based on IPI scores, and exceeding them can incur significant charges. This guide will help you plan your inventory for the next 90 days, aligning with Amazon's quarterly evaluation cycles.

• IPI threshold is subject to change; check Seller Central for current values.
• Storage limits are per storage type (standard, oversize, etc.) and can be restricted if IPI is low.
• Buyers should monitor seller IPI indirectly through stock availability and price stability.

Key Components of Amazon FBA IPI

Amazon calculates IPI based on four main factors: excess inventory percentage, sell-through rate, stranded inventory percentage, and in-stock rate. Each factor has a target range, and your score is a weighted average. Understanding these components helps you identify weak areas.

Excess inventory refers to items that have more than 90 days of supply. Sell-through rate is the number of units sold compared to units received. Stranded inventory is stock with listing issues that prevent sales. In-stock rate measures how often you have inventory available when there is demand. Improving any of these can boost your IPI.

• Excess inventory: aim for less than 10% of total inventory
• Sell-through rate: target above 50% over 90 days
• Stranded inventory: keep below 1% of total units
• In-stock rate: maintain 80% or higher for top-selling ASINs

How to Evaluate Your IPI: Criteria and Trade-offs

To evaluate your IPI, check your dashboard in Seller Central. It shows your score and the four contributing factors. Use the 'Inventory Performance' page to see specific recommendations. When planning, consider trade-offs: holding more inventory improves in-stock rate but increases excess inventory risk. Balancing these is key.

For product selection, use IPI data to identify slow movers and fast sellers. For cross-border e-commerce, factor in lead times: if restocking takes 30-60 days, you need higher safety stock, which may lower your IPI. Evaluate whether the sales volume justifies the storage cost. A common approach is to set reorder points based on historical sell-through and lead time, but adjust for seasonality.

• Check IPI score weekly and analyze trends.
• Calculate your current sell-through rate: units sold / units received over 90 days.
• Review stranded inventory and fix listing issues promptly.
• Compare your IPI to the threshold (currently 400-500, but verify).
• Consider the cost of overage fees vs. lost sales from stockouts.

Common Pitfalls When Managing IPI

One common mistake is ignoring stranded inventory. Even a small percentage can drag your IPI down. Another is over-ordering to avoid stockouts, leading to excess inventory. Sellers often forget to adjust for seasonality, causing high excess in off-peak months. Also, not monitoring IPI regularly until you hit a limit is a frequent error.

For buyers, a pitfall is relying on sellers with poor IPI without backup suppliers. If a seller faces storage limits, they may run out of stock, affecting your supply chain. Always have alternative sourcing options. Additionally, some sellers may raise prices to cover storage fees, so negotiate early.

• Failing to fix stranded inventory promptly.
• Overestimating demand and overstocking.
• Ignoring IPI until storage limits are imposed.
• Not using FBA's 'Manage Excess Inventory' tools.
• For buyers: not diversifying suppliers.

Practical 90-Day Plan to Improve or Maintain IPI

Day 1-30: Audit your inventory. Identify all SKUs, their age, and sell-through rates. Use the FBA Inventory Age report. Create a list of slow movers (over 90 days) and stranded items. Resolve listing issues immediately. Set a goal to reduce excess inventory by 20% by removing or discounting old stock.

Day 31-60: Optimize product selection. For each SKU, calculate the optimal reorder point using lead time and average daily sales. For cross-border e-commerce, use a lead time of 45-60 days. Implement a replenishment plan that avoids overstocking. Use Amazon's 'Restock Inventory' tool for suggestions. Consider bundling slow movers with fast sellers to increase sell-through.

Day 61-90: Monitor and adjust. Check IPI weekly. If your score is below threshold, increase sell-through via promotions or adjust pricing. For buyers, use this time to evaluate supplier performance and place orders based on their IPI stability. Document your plan and review quarterly to adapt to policy changes.

• Use FBA reports to track inventory age and sell-through.
• Set a target IPI score (e.g., 450) and track progress.
• Implement a removal order for unsold inventory after 90 days.
• For buyers: request IPI reports from sellers to assess reliability.
• Stay updated on Amazon's IPI policy changes via official announcements.

Key Takeaways

In summary, managing your Amazon FBA IPI is a continuous process that requires attention to inventory health. By understanding its components, evaluating your score, and avoiding pitfalls, you can maintain a healthy IPI. Start with a 90-day plan: audit, optimize, and monitor. For sellers, focus on reducing excess and stranded inventory. For buyers, use IPI as a criterion for supplier selection. Next steps: log into Seller Central, check your IPI, and implement the first week's actions. For buyers, list your top suppliers and review their IPI data if available.

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.