Amazon IPI stand for Inventory Performance Index. It is a recently-introduced metric that is used by Amazon to evaluate the performance of FBA sellers. IPI is calculated quarterly. If an FBA seller’s IPI drops below 350 on a scale of 0 to 1000 Amazon imposes a storage limit. The seller is charged an overage fee for every square foot of inventory over the limit. FBAs with scores below 350 receive their first notice about six weeks before the end of the quarter. Once imposed, storage limits remain in effect at least for the entire next quarter.
- Amazon introduced the inventory performance index (IPI) a month ago. The IPI is used to identify sellers with slow moving inventory.
- If your IPI score falls below 350 in Q1, Amazon will send you an alert. If it doesn?t improve, Amazon will impose a storage limit.
- Evaluation periods start on the 19th of November, February, May and August and end the last day of December, March, June and September.
“Whether you?re part of the first wave of sellers to have storage limits on Amazon.com, or you?d like to prevent it from happening to you, you?re in the right place.”