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What is the Inventory Performance Index (IPI)?

Kelly

Account Performance Manager at Amersify

Introduction

The Inventory Performance Index (IPI) is a vital but complex metric for Amazon FBA sellers in 2025.

Amazon uses your IPI score to measure how efficiently you manage your stock within its fulfilment network. A strong IPI keeps your storage limits high and your costs low. A poor score restricts your capacity, increases fees, and can block new inbound shipments—especially during Q4 and peak sales periods.

This guide breaks down what the IPI measures, how the score is determined, and what you can do to improve it for optimal FBA performance.

1. What Is the Inventory Performance Index (IPI)?

The IPI is a rating between 0 and 1,000 that gauges how effectively you manage inventory at Amazon’s fulfilment centres.

It is Amazon’s tool for balancing the need to have stock available for sale, without letting excess product accumulate and use up valuable warehouse capacity.

Why Your IPI Matters:

Determines your FBA storage and restock limits.
Influences your profile in Capacity Manager auctions for extra space.
Impacts FBA storage fees (including excess and overage charges, now higher in late 2025).
Reflects overall inventory management health.

Amersify Tip:

Maintain an IPI score above 400 to avoid severe storage or restock restrictions in Q4 2025.

2. How Amazon Calculates IPI

Amazon does not publish the full calculation, but IPI is primarily affected by these four metrics:

Metric	What It Measures	Why It Matters
Excess Inventory	Stock unsold for more than 90 days	Ties up capacity, incurs high storage fees
Sell-Through Rate	Units sold divided by units in stock (90 days)	Higher throughput = better efficiency
Stranded Inventory	Unsellable stock from listing issues	Generates costs but cannot be sold
In-Stock Rate	Frequency key ASINs remain available	Stockouts harm sales and account health

Your IPI score in Seller Central reflects a rolling 90-day window, updated weekly.

Pro Insight:

Recent improvement efforts can positively impact your IPI in as little as 2–3 weeks. Amazon rewards recent progress more heavily than older data.

3. How to Check Your IPI Score

In Seller Central, go to Inventory > Inventory Planning > Performance Dashboard.
Find your IPI score and individual breakdowns for each metric, complete with colour-coded progress bars.
Hover over any section for details on which ASINs are underperforming.

Amersify Tip:

Focus your optimisation work on the poorest-performing categories—these will give you the fastest returns in IPI improvement.

4. How to Improve Your IPI Score

Boosting IPI is straightforward, but consistent attention to detail is required:

Increase Sell-Through:

Run short-term deals or price campaigns to clear ageing stock before Q1.
Leverage Sponsored Products and Display Ads for slow sellers.
Reprice surplus ASINs to move stale inventory.

Reduce Excess Inventory:

Identify and liquidate overstocked products.
Halt FBA replenishment on underperforming lines.
Monitor seasonality for storage fee avoidance—respond before Q4 storage rates take effect.

Resolve Stranded Inventory:

Use Inventory > Fix Stranded Inventory to resolve errors.
Correct any suppressed listings or policy issues.
Relist or remove any unsellable units promptly.

Maintain High In-Stock Rates:

Rely on Restock Inventory Reports to plan shipments.
Prioritise your top revenue ASINs.
Ship stock to Amazon 4–6 weeks before key peak selling periods.

Amersify Tip:

Set automated replenishment reminders inside Seller Central or use an inventory management tool, such as RestockPro, to prevent accidental stockouts.

5. The Impact of IPI on Storage Limits

IPI directly determines your FBA storage and restock limits—especially significant from November 2025 due to seasonal surges and the expanded use of Capacity Manager. Here is the latest impact chart:

IPI Score Range	Account Impact
700–1,000	Excellent: High capacity and maximum flexibility
500–699	Good: No immediate restriction
400–499	Warning: Risk of restrictions, improve promptly
Below 400	Limited: Reduced storage and restock allowed

Pro Insight:

Amazon now reviews your allocation monthly and allows sellers to bid for extra space in Capacity Manager—a low IPI makes winning that extra capacity very challenging in Q4.

6. Common IPI Myths

Deleting old listings will not instantly remove their inventory history or excess stock impact.
Running out of popular products does hurt your IPI due to drops in in-stock rate.
IPI is recalculated weekly, not just quarterly as some believe.

Truth:

IPI measures your operational efficiency—it is not a penalty, but a tool for identifying when and where to optimise your processes.

FAQs

How often is IPI updated?

Weekly. Each update reflects your rolling 90-day performance.

Can I recover from a low IPI quickly?

Yes—focus on sell-through and resolving stranded stock for noticeable gains in a few weeks.

Does IPI affect FBM listings?

No. IPI applies only to inventory stored in Amazon’s FBA network.

What’s a good target score?

500+ is recommended, 700+ is ideal.

Summary

The Inventory Performance Index is more than a compliance score—it sets the pace for your FBA opportunity and profitability in 2025.

A high IPI means lower fees, greater storage flexibility, and fewer fulfilment disruptions. Neglecting it can restrict you when you most need capacity, especially during peaks.

At Amersify, our team continuously monitors and manages IPI for clients, balancing sell-through, replenishment, and inventory control for optimal Amazon performance year-round.