Amazon's inventory dropped sharply, how to improve IPI!

This year can be regarded as an eventful year for Amazon, with major changes in policy direction, shipping restrictions, and even major changes in VAT tax reform . In fact, it is not surprising that Amazon has undergone new changes recently, and the inventory of a large number of Amazon sellers has dropped sharply.

As sellers on Amazon, this decision is a mixed bag. Although Amazon has only updated it, it is clear that most sellers have seen a sharp drop in sales!

We can also see from the sellers’ feedback that many people’s accounts also turned red directly.

Some sellers who exceed the standard are very worried about one issue: whether there will be additional charges for the excess amount. In fact, everyone can rest assured that as long as the warehousing plan is created and shipped before the 22nd, no additional fees will be charged even if the quantity exceeds the limit . This is Amazon's official statement.

One Amazon seller said that although his large size had lost more than 1,000 pieces, a small size that was not sold much actually had 9.99 million. After seeing this number, he was so panicked that he couldn't speak! Many sellers will ask how this is calculated, so we have to start with IPI;

Amazon IPI is an inventory performance index, which is the score Amazon uses to evaluate sellers' inventory management. The score ranges from 0 to 1000. Amazon previously announced that it would raise the IPI threshold to 400 from January 1, 2020. For sellers who do not meet the threshold, the FBA inventory quantity will be restricted.

In fact, IPI is generally updated once a week. As for the calculation of inventory capacity, many sellers said it is related to IPI. But it is definitely impossible to enjoy unlimited warehouse capacity if the score is higher than 450. From the seller's personal experience, although inventory capacity is related to IPI, it is also closely related to product sales and unsalable products . One Amazon seller said that his IPI score has risen to 705 points, but the inventory capacity has decreased by 500.

Amazon has stated that the IPI score assessment time for the third quarter is expected to be in mid-May. If the seller's IPI score is lower than 450, it is necessary to take action as soon as possible to improve the IPI score.

1. Sort out your inventory . Get rid of slow-moving inventory, immediately create inventory removal orders to process these products, sort out your listings, and delete problematic or outdated SKUs.

2. Discontinued and unrestocked products will not affect your IPI score , so you can ignore Amazon’s recommendations for these products on the restock page.

3. Once new inventory is put into storage, it will immediately affect your product sell-out rate , which is currently the most important influencing factor. Therefore, you should frequently monitor product delivery status, adjust product prices and discount information to accelerate sales.

4. Archived listings are still included in the IPI score calculation . Listings that have been converted from Amazon Logistics FBA to Seller-Fulfilled MFN are also still included in the IPI calculation. Hiding these listings from Amazon recommendations is the only way to bypass the IPI score.

5. Consider product sales . If one product sells 10 times as much as another product, then the impact of this product on your IPI is also 10 times that of the other product. Therefore, before the evaluation period begins, you should focus on increasing the sales of best-selling products to improve your IPI score.

6. Quarterly storage limits depend on Amazon's available space and categories . So, in order to prepare for the next quarter in advance, you should be aware of some categories with higher Amazon storage limits. Generally speaking, sellers' storage limits are no less than 25 cubic feet per product. Sellers should note that storage limits and excess fees have a much greater impact on large items, and you should consider small items more.

7. When you replenish your inventory, once your inventory is completely sold, your IPI score will be affected immediately. Therefore, make sure there is at least one inventory in the warehouse, especially Amazon recommended products.

8. You need to sell your products quickly in a short period of time . If possible, negotiate with suppliers to deliver in small quantities and multiple times, and then resume the original delivery speed after Amazon touches your inventory limit.

In addition , new products within 90 days will not affect the seller's IPI score .

In addition to the above 8 points, you should do the same as usual , but do it better. Increase product ratings and feedback rates as much as possible to attract more consumers to buy, so as to continuously improve your IPI value and strive to reach more than 500 points before the peak season arrives, break free from restrictions and do a great job!