How well you handle your inventory as an Amazon FBA seller is a key factor in your success at FBA Shipping. Reduced storage fees and inventory costs, as well as increased overall profitability, are all benefits of proper inventory management.

The Inventory Performance Index, or IPI, is a built-in indicator that helps Amazon FBA sellers track their inventory performance over time. This metric is an important indicator for Amazon Freight Forwarders as well as Sellers, since they can only meet this metric’s requirements if they work in harmony. The IPI is intended to assist Amazon FBA sellers and FBA Freight Forwarders in completely comprehending the state of their inventory so that they can be as efficient and lucrative as possible.

What does IPI mean for Amazon FBA Sellers and FBA Freight Forwarders?

The IPI score, according to shipping to Amazon FBA, assesses how effective and efficient you and your Amazon Freight Forwarder are in managing your FBA inventory. It has a scale of 0 to 1,000, with higher numbers indicating better performance.

All Amazon FBA sellers must satisfy a minimum threshold score set by Amazon. If you fall below that threshold, Amazon will impose storage restrictions on your account while shipping to Amazon FBA until your inventory condition improves. The Inventory Performance Index (IPI) threshold is 450; anything above 450 is considered a “high” IPI score.

Your IPI score is influenced by a few important elements that can impact Sellers Amazon FBA storage capacities and ability to use specific Amazon FBA programs:

• Maintaining a healthy balance between sold and available inventory while avoiding surplus inventory
• Avoiding the cost of long-term storage
• Fixing issues with your postings
• To meet client demand, keep bestselling products in stock.

Essentially, Amazon employs the IPI score to verify that their own FBA capacity is used efficiently; that is, the products that sellers are keeping in FBA warehouses are goods that consumers want and will not go unsold for long periods. Running not out of stock is not only an Amazon FBA Sellers success alone but also its FBA Freight Forwarders. A successful Amazon Freight forwarder should guide about the best shipping methods in terms of cost vs speed and keep its promises about on time delivery.

How can an Amazon FBA Seller increase its IPI score?

1. Boost your conversion rate

Amazon prefers sellers to have a good 90-day rolling purchase rate, which puts them in the “green” on the IPI chart.

An Amazon FBA Seller can run a sale to promote conversions, promote its products, fine-tune its keyword targeting approach, and use more engaging listing images to enhance its sell-through rate.

2. Excess inventory should be reduced

Amazon does not want to hold unsold goods.   Amazon may also suggest that Amazon FBA Sellers set up an “Amazon Outlet” offer to sell overstocked or out-of-season items quickly.

3. Be proactive when it comes to listing concerns

If you have any abandoned inventory or other listing difficulties that are stopping buyers from purchasing, address them as soon as possible.

• Check your trapped inventory percentage on a regular basis so you can address the problem before you start spending more in storage fees.
• Maintain a healthy inventory balance between sold and remaining items.
• Maintain optimum inventory levels for your most popular products (between 30-60 days of supply)

Amazon FBA Sellers must check their inventory dashboard on a regular basis to make sure they’re on track.

What happens if my IPI score falls below the threshold?

Amazon FBA Sellers will be subject to inventory storage constraints if their IPI score falls below the minimal requirement.

As you may recall, Amazon announced new ASIN-level FBA inventory restrictions based on sales volume in July 2020. While brand-new ASINs were limited to 200 units, older listings were given far more flexibility. FBA products will no longer be subject to those restrictions as of April 22, 2021.

Instead, Amazon has imposed restocking restrictions based on storage type. Amazon now limits the amount of FBA inventory you can keep at fulfillment centers to your entire account, rather than by ASIN.

Many Amazon FBA Sellers who only use one sort of FBA storage are dissatisfied with this development, as it limits their ability to keep current ASINs in stock as well as launching new products.

Now that Amazon has made this significant move, Amazon Sellers should keep a watch on their storage restrictions. Even if they have refill limits in place, they must make sure that they maintain a healthy IPI score, since this will at the very least keep their storage expenses low.

If the IPI score is below the limit and have low restock limitations and storage volume, Amazon Sellers should consider employing a third-party fulfillment center to avoid overstocking in FBA. So, Amazon Sellers must prefer Amazon Freight Forwarders who has a an extensive warehouse network both in the East and West Coasts.

You’re on the right way to become a successful and profitable Amazon FBA seller if you can correctly manage your inventory.

How can Forceget help?

Forceget is a top choice as an Amazon logistics service provider because it is a focused Amazon Freight Forwarder. We offer a broad variety of services for Amazon FBA sellers, with a network of warehouses both in East and West Coasts of US, Canada and in China.  Warehousing, full container load (FCL), less than container load (LCL), air and door-to-door transportation to fulfillment facilities are all included.

We also have a digital platform, where our customers can easily manage their inventory levels since they can track exact location of their each shipment.