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Amazon Lowers Inventory Performance Index Threshold For Sellers

On Monday, Amazon issued a seller notice that it is lowering the Inventory Performance Index (IPI) threshold for sellers to 450. The company explains:

  • “If your IPI is 450 or above in week 51 of 2020, starting January 1, 2021, you will not be subject to storage volume limits.”
  • “If your IPI is below 450 in week 51 of 2020, you will continue to be subject to storage volume limits. We will notify you of your next period limits, which will go into effect on February 1, 2021.”

The IPI is a number between 0-1000 to gauge a seller’s inventory performance over time as it measures how efficient and productive a seller is in managing their FBA inventory. While the company does not disclose how it calculates the IPI, it recommends four key items for sellers to improve their IPI:

  • Reducing excess (overstock) inventory.
  • Improving 90-day rolling sell-through by maintaining the right balance of inventory over the same time period.
  • Ensuring inventory is buyable by fixing listings that are stranded.
  • Increasing sales by keeping popular items in stock.

Amazon also updated the IPI Help Page and IPI FAQ it maintains for third-party Amazon sellers on its Seller Central platform.

And finally, the company reminded sellers that all products are still subject to restock quantity limits. Sellers can view quantity limits for their products on Restock Inventory.

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