Amazon Inventory Index (IPI) Threshold Change To 450
In May, Amazon raised the Amazon Inventory Index (IPI) threshold for Q3 from 350 to 400.
In July, the IPI threshold soared to 500 points, and the evaluation period was advanced by 5 weeks. Those with lower IPI scores between July 13-19 and August 10-16 will face storage restrictions from August 16 to December 31.
However, Amazon changes the Inventory Index (IPI) threshold to 450. Amazon pointed out, as the New Year is approaching, Amazon has decided to reduce the inventory performance index(IPI) threshold to 450. In this way, to ensure that all sellers have space to store their products during this holiday season,
But all products are still subject to restock quantity limits. Sellers can view quantity limits for products on Restock Inventory.
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.
Has your IPI reached 450?
Therefore, for sellers with an IPI score of less than 450, the most important task now is to find a way to improve the inventory performance index (IPI) score.
Tips to improve your IPI
1. Manage your inventory
Dispose of slow-moving inventory, immediately create removal orders to process these products, close or delete inactive listings, and delete problematic or obsolete SKUs.
2. Focus on your best-selling products
The sales volume of one product is 5 times that of another product, so the impact of this product on your IPI is also 5 times that of another product. Therefore, you should focus on increasing the sales of best-selling products to increase your IPI score.
3. Avoid out of stock
When you replenish inventory, remember that Amazon will not punish you for having less inventory than they recommend. But when your inventory is completely sold, your IPI score will be immediately affected. Therefore, please ensure that there is at least one inventory in the warehouse.
4. Increase the sales rate.
Selling rate = inventory quantity sold in 90 days/average total inventory in 90 days.
The sales rate score depends on the seller’s sales ability and order level, the higher the sales rate, the better.
If your sell-through rate is not well, we can consider that there is a problem with your product. Maybe you have not chosen the right keyword for your product, or your product can not meet customers’ needs.
Find your product performance by monitoring your product keyword ranking and reviews, better analyze your sales, and get your sales report. In this way, you can easily target the problem of the product and change your strategies timely.