Boosting and maintaining your Amazon Inventory Performance Index (IPI) score is crucial for a successful and profitable FBA business. By addressing major factors like excess inventory percentage, FBA sell-through rate, stranded inventory percentage, and FBA inventory in-stock rate, you can boost your IPI score and, in turn, boost your business success. With the help of One Page Inventory, your success is inevitable. Below, we dive into some key strategies to improve your IPI score.
1. Excess Inventory Percentage
Excess inventory (or overstock) refers to the products that a seller has stored in Amazon’s fulfillment centers which exceed the amount likely to be sold in a reasonable timeframe. Amazon typically considers a reasonable amount of time for inventory to be sold within a 90-day period. Three aspects Amazon uses to determine if inventory is excessive include:
FBA Sell-Through Rate:
This measures how quickly your inventory is selling over a 90-day period. A high sell-through rate indicates that you are maintaining an appropriate inventory level and meeting customer demand. With OPI’s forecasting capabilities, you can accurately predict future sales and ensure that your inventory levels are aligned with customer demand. This helps you avoid overstocking or stock-outs, ultimately improving your FBA sell-through rate.
Inventory age / in-stock rate:
0-90 Days: Inventory is considered fresh.
91-180 Days: Inventory is aging but still within a relatively acceptable timeframe.
181-365 Days: Inventory is getting old and may incur long-term storage fees soon.
Over 365 Days: Inventory is considered long-term and incurs additional storage fees.
Excess units:
Amazon defines excess units as the quantity of a product that exceeds the forecasted demand for the next 90 days. By keeping inventory within these timeframes and ensuring a high sell-through rate, sellers can avoid accumulating excess inventory and the associated fees. Reduce excess inventory by closely monitoring inventory age, optimizing stock levels, utilizing removal orders, and running promotions.
One Page Inventory’s sales velocity and forecasting graphs can help you identify slow-moving products and effectively manage your inventory. The replenishment features and minimum stock settings can help you maintain a high FBA inventory in-stock rate, avoiding stock-outs and ensuring that your best-selling products are consistently available to customers.
2. Stranded Inventory Percentage
Stranded inventory is FBA inventory unavailable for sale due to listing issues. Causes of stranded inventory include inactive listings, pricing issues, missing information, ASIN suppressions and fulfillment issues. OPI’s issue tracker can help you identify and resolve any discrepancies in your product data. By utilizing OPIs tools and understanding the causes of stranded inventory, you can maintain a healthy IPI score, reduce storage costs, and optimize your sales performance on Amazon.
To read more about preventing stranded inventory, click here!
Further improve your IPI score with OPI:
- Forecasting: Accurately predict future demand and make informed decisions about your inventory levels.
- Replenishment: Create shipments within OPI for fast replenishment.
- Ordering: OPI leverages all marketplace sales to predict future demand, so that you can order with confidence. Ensuring that you are always in stock.
By leveraging the powerful features and insights provided by OnePageInventory, you can effectively address the four key factors that influence your Amazon IPI score. This, in turn, can help you reduce storage fees, increase your sales, and achieve greater success on the Amazon marketplace. Try OPI for free today!
