What Does Amazon Warehouse Performance Mean?

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and how calculate my IPI?

1 Answers

Amazon's warehouse resources are limited. To scientifically and reasonably allocate warehouse capacity to each seller, Amazon has established the Inventory Performance Index (IPI).

The IPI measures the overall performance of a seller's FBA inventory over a period of time. Additionally, the IPI score is a crucial factor in determining a seller's storage limits on Amazon. By stocking best-selling items and efficiently managing existing inventory, sellers can effectively drive sales. Amazon updates the IPI score weekly. Sellers who meet the IPI threshold can enjoy unlimited storage space in the next quarter; those who do not meet the threshold will face storage capacity limits and will be charged monthly overage fees for exceeding their storage limits.

The IPI score is calculated based on the ability to drive sales through inventory management, with the specific standards as follows:

IPI ≥ 550: Excellent operational capabilities.
550 > IPI ≥ 350: Inventory performance is within the normal range but has room for improvement.
IPI < 350: Immediate measures should be taken to improve the score.

Viewing Path:
Inventory -> Inventory Planning -> Inventory Dashboard Performance -> Inventory Performance.