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July 14, 2025
Amazon FBA Management
What is the Amazon IPI Score?
Amazon IPI (Inventory Performance Index) Score
How do you shape your FBA success and keep it high?
It’s great to be a seller on Amazon with a “Prime” badge, a seller who hands over storage and shipping to Amazon, but behind the scenes there is a very critical indicator called the IPI score. By 2025, the threshold Amazon considers “healthy” is 400 points sellerlabs.com. When you fall below this threshold, both your storage allowance shrinks and additional costs come into play that erode your profitability. Let’s take a closer look at the IPI and discuss how you can ensure that you rise rather than fall.
1. What Exactly is the IPI Score?
The Inventory Performance Index is a composite score, calculated on a scale of 0-1000, that measures how efficiently and predictably you manage your FBA inventory. The score is updated as a composite of four key metrics:
| Component | What Measures? | Why does it matter? |
|---|---|---|
| Excess Inventory | Percentage of units in storage for longer than necessary | Amazon charges “rent” for the product that occupies its shelf in vain. |
| Sell-Through Rate | Units sold in the last 90 days ÷ average stock | As the sales velocity declines, the IPI declines rapidly. |
| Stranded Inventory | Disconnection between the list (ASIN) and the product in the warehouse | The product becomes unsellable and you lose both sales and points. |
| In-Stock Rate | In-stock rate of fast-selling ASINs | Amazon doesn’t want you to take a good seller out of stock. |
In the table above, the first two factors – oversupply and sell-through – weigh the heaviest according to Amazon
2. What happens if you score below 400 points?
Your Storage Capacity Shrinks
In 2025, Amazon limits capacity calculation to a ceiling of “5 months of expected sales” carbon6.io. The low IPI makes this right even more astringent; even your popular product cannot get into the repository.Monthly “Overstock” Fees
For every unsold box that fills the shelves, you pay a storage fee, like an additional tax. Even if the product is small, Amazon bills by volume; if the box is enlarged, the cost is doubled.Profitability Erosion
Higher storage fees + lost sales = direct hit to profits. Your entire campaign budget can evaporate.Restock Limits
The algorithm receiving the message “Sales are low, warehouse is full” sets a quota on new FBA shipments; sales momentum is broken, advertising investment is wasted.Risk of Disposal
For products close to their expiration date, Amazon may initiate mass destruction if you have not placed a “removal order”. Undated products can also be removed from the shelves with a surprise “dispose” instruction if they exceed 12 months.
3. Score Boosting Strategies
a. Demand Forecasting and Microshipments
Send a “test lot” on a new ASIN (e.g. 50-100 units).
Monitor the pace of sales for 30-45 days, then gradually increase the volume.
If you need to send a large batch, first unload it to the contracted intermediate warehouse; forward it “drop by drop” to FBA.
b. Focus on the 90-Day Cycle
Amazon gives high weight to sell-through for the last 90 days.
Stock up so that your campaign periods (Prime Day, Black Friday, 11.11) fall within the 90-day window.
Quickly trigger sales momentum on slowing SKUs with a coupon, Lightning Deal or 5-10% price adjustment.
c. Proactive Solution to Excess Inventory
Check the recommendations on the Manage Excess Inventory screen weekly.
Open an “Outlet Deal” or place a removal order on SKUs with low RoI.
If you have a wholesaler willing to sell the ASIN, return it to the “Seller-Fulfilled Prime” temporary model.
d. Stranded Inventory Hunt
Daily clear products that are unlisted due to SKU-ASIN mismatches, brand registration issues, price error, etc. from Seller Central → Inventory → Fix Stranded table.
Turn on automatic “Stranded Alert” notifications; each record not resolved within 48 hours will deduct IPI.
e. ABC Classification for “In-Stock Rate”
A: Top 20 best-selling ASINs → Never out of stock.
B: Medium volume 30-40 ASINs → Minimum 4 weeks stock hold.
A: Remaining long tail → Manage with FBM or Dropshipping models instead of FBA; don’t burden IPI.
4. Roadmap for First Time FBA Sellers
Market Analysis and Target Sales Plan
Extract price-competition, number of reviews, ranking trend.Target Sell-Through per SKU (e.g. 30% per month).
Shipping Plan
First batch 30 days stock
sales rate revision per day
Second batch 45-60 days stock
Critical Indicators Dashboard
IPI, sales velocity, FBA fees, ad spend on one screen.Pre-Season Lean Stock
Focus on cash-flow instead of excess product; renew quickly.Underperforming Product Protocol
before 60 days are up: price reductions
If still slow at 90 days: removal order or outlet.
5. What do we do for you?
At YCF Digital:
Real Time IPI Tracking: We set automatic alarms for instant score fluctuations.
Demand Forecasting Model: We combine your sales data, Amazon season calendar and campaign history with machine learning.
Optimal Shipment Plan: Staggered shipment to FBA via our intermediate warehouse eliminates unnecessary fees.
Stranded/Suppress Solution Team: Response to all error codes within 24 hours.
Excess Stock Exit Strategy: Multiple scenarios including outlets, B2B bulk sales or transition to FBM.
In short, while you focus on product development, we manage every meter of the FBA maze on your behalf. Your IPI score goes up, your warehouse costs go down and your Prime badge stays secure.
We are waiting for your applications.
Take your place among the winners now.
