How can Amazon FBA sellers improve their IPI scores?

In July 2018, Amazon introduced a new metric to FBA sellers: IPI.

Briefly explain, what is IPI?

IPI (Inventory Performance Index) refers to the inventory performance index . The index score is 1-1000 points. If the IPI score of an FBA seller is lower than 350 points, Amazon will limit your inventory. Once your inventory exceeds the limit, you will no longer be able to ship to FBA. This shows that the IPI index is very important for Amazon sellers.

When you log in to your seller backend > Inventory > Performance, you can view your IPI score. At the top of the page, the main factors that affect the IPI score are listed:

• Excess inventory   Stranded Inventory

• Sell-through   Inventory-to-sales ratio

• Stranded inventory is inventory that is stranded in the warehouse due to listing problems.

• In-stock inventory

Therefore, if you want to improve your IPI score and then increase your position, you must consider the above four factors for optimization.

It is recommended to optimize in the following order:

Knowing that the above factors affect your IPI, how can you improve your IPI score?

You can follow the recommendations given by Amazon.

In the Amazon backend , Inventory > Manage Excess Inventory can manage overstock, as shown below:

As shown in the picture, there is a drop-down menu on the far right of each column, which contains improvement suggestions given by Amazon.

include:

• Modify your listing

• Generate sales

• Update product settings

• Improve keywords

• Promote product listings

• Price reduction

• Set the cleanup order

Each product in your inventory has different characteristics, so you can’t handle inventory problems in the same way. You need to carefully consider the actual situation and various factors to choose the best solution. Amazon recommends a solution for each product, telling you how to clear out the backlog and improve your IPI score.

In addition, if you feel that the solution provided by Amazon is unreasonable, you can also submit your own feedback to improve the solution.

Steps: After clicking on the product link, another drop-down menu will appear where you can submit your feedback.

Specific steps:

In the Inventory tab, there is an FBA Inventory Age, which is the age of the goods. You can view how long your products have been in the Amazon warehouse in chronological order.

It is recommended to classify them into different time periods as shown in the figure below, and then handle each inventory according to the operations recommended by Amazon.

Make sure to regularly check for stranded inventory caused by listing issues and take appropriate measures to resolve them.

You can re-edit your product listings, or set up an automatic cleanup order to close or delete inactive listings.

Starting from June 10, 2019, Amazon allows sellers to resolve stranded inventory caused by listing issues within 30 days. If it is not resolved after 30 days, Amazon will automatically determine it as unsaleable and remove it from the warehouse.

If the IPI score is low due to insufficient inventory, the seller can solve it as follows:

There is a Restock Inventory under the Inventory tab. Amazon will provide suggestions for solving insufficient inventory. You can replenish according to their suggestions or choose to hide the suggestions.

The above are three suggestions for improving IPI scores. Here I would like to remind all FBA sellers that Amazon has launched the IPI indicator, which shows that Amazon inventory is very important. As an FBA seller, you should pay close attention to this issue. Amazon set up FBA warehouses to satisfy customers in terms of logistics. If you have too much inventory backlog in Amazon warehouses, then Amazon will naturally be unhappy.

The IPI score is Amazon's way of helping us see problems in our inventory and improve inventory performance. The original purpose was not to torture FBA sellers in every possible way. Instead, Amazon wants FBA sellers to have a huge success in their business so that it can also make a profit. The IPI score is designed to provide sellers with important data on how to improve their business. Amazon FBA sellers are the biggest beneficiaries of understanding the IPI indicator and optimizing inventory performance.

You can find out about:

• Strengths and weaknesses of IPI scores

• The best ways to improve your IPI score

• Why did the IPI score drop after optimizing according to the four factors?

• How do different factors affect your IPI score?

• How to calculate FBA in-stock rate?

To learn more about Amazon storage limits and IPI scores,

Click: https://sellercentral.amazon.com/gp/help/GXLRKWL8L5BMSHWB .

What is your IPI score? How do you manage your IPI index? FBA sellers are welcome to share your experience and opinions.

Rain or shine, we'll be waiting for you in the comments section.