When managing a successful Amazon FBA business, few metrics carry as much weight as the Inventory Performance Index (IPI). For sellers, this number is more than just a score — it’s a direct reflection of how efficiently your inventory is managed and how healthy your FBA account truly is. Understanding your IPI score, what influences it, and how to improve it can make all the difference between smooth operations and costly storage restrictions.
Let’s take a closer look at what the IPI is, why it matters, and how it impacts your business on Amazon.
The Amazon Inventory Performance Index (IPI) is a key metric Amazon uses to measure how well sellers manage their FBA inventory. It’s a numerical score ranging from 0 to 1000, and it’s updated regularly based on your inventory activity.
This score helps Amazon determine whether you’re making efficient use of its fulfillment centers. A higher IPI score signals that you maintain a healthy balance between inventory levels, sell-through rate, and product demand. On the other hand, a low score suggests inefficiencies, such as overstocking, stranded inventory, or unsold products sitting too long in storage.
While Amazon doesn’t disclose the exact formula behind the IPI, the company has made it clear that four major factors influence it:
Your IPI score isn’t just a vanity metric — it directly affects your FBA storage limits and account privileges. Amazon uses it to ensure that its fulfillment centers operate efficiently and that space is allocated to sellers who manage inventory effectively.
Here’s how it affects you:
For sellers who rely heavily on FBA, maintaining a strong IPI score is critical. It allows you to operate without interruption, avoid unnecessary costs, and ensure smooth order fulfillment.
1. Excess Inventory
Excess inventory refers to products that have been sitting in Amazon’s warehouse longer than necessary. These items take up valuable space and signal to Amazon that you’re not managing your inventory efficiently.
To minimize excess inventory:
2. Sell-Through Rate
Your sell-through rate measures how quickly your inventory sells within a certain timeframe, typically 90 days. Amazon wants to see that your products are in demand and not gathering dust in their warehouses.
To improve your sell-through rate:
3. Stranded Inventory
Stranded inventory occurs when your products are physically in Amazon’s warehouse but unavailable for sale. This usually happens due to listing errors, pricing issues, or policy violations.
To avoid stranded inventory:
4. In-Stock Inventory
While it’s important not to overstock, running out of inventory for popular items can also hurt your IPI score. Amazon rewards sellers who keep their top-performing products consistently in stock.
To maintain healthy in-stock levels:
Even experienced sellers can make mistakes that hurt their IPI score. Some of the most common include:
These small errors can add up quickly, leading to reduced storage space and higher fees.
Amazon updates your IPI score weekly, but it evaluates your account quarterly to determine storage limits. The two most critical review periods occur before major shopping seasons like Prime Day and Q4 holidays.
To avoid penalties, aim to keep your score above Amazon’s required minimum at least six weeks before these assessment periods.
If your score has dropped below the threshold, don’t panic — it’s possible to recover. Here’s what you can do:
By taking consistent, data-driven actions, most sellers can raise their IPI score within a few weeks.
A high IPI score doesn’t just help with storage — it also improves your standing within Amazon’s ecosystem. Sellers with healthy inventory performance are often rewarded with smoother FBA operations, better Buy Box visibility, and fewer account health issues.
In other words, managing your IPI well is not just about avoiding penalties; it’s about setting your business up for long-term success on Amazon.
If your IPI score has dropped or your FBA account is facing restrictions, expert guidance can make all the difference. At Amazon Appeal Pro, we specialize in helping sellers resolve inventory performance issues, recover restricted accounts, and appeal Amazon suspensions effectively.
Whether your listings have been stranded, your account is under review, or you’re facing storage limits due to a low IPI, our team can create a strategic plan to restore your account health and keep your business running smoothly.
Contact us today at (954) 302-0900 to speak with an Amazon appeal expert and get your FBA account back on track with Amazon Appeal Pro — your trusted partner in Amazon account recovery and compliance.
