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This article applies to selling in: Brazil

IPI frequently asked questions

This page provides answers to common questions about Inventory Performance Index (IPI).

The IPI score and Inventory Performance Dashboard is only available for sellers with a Professional selling plan.

How is IPI score calculated?

IPI score measures how efficient and productive you are in managing your FBA inventory. Multiple factors could influence your IPI score, however, the most important ones are based on your actions:

  • Maintain a balanced inventory level between sold and on-hand inventory and avoid excess and aged inventory.
  • Avoid long-term storage fees.
  • Fix listing problems.
  • Keep your most popular products in stock at the right levels to meet customer demand and maximize customer satisfaction.

Your IPI score is designed to represent your overall inventory performance and considers both your recent and long-term inventory performance. When you take actions to improve your inventory efficiency, these actions can take time to result in IPI score improvements. The IPI is built to account for seasonality or unexpected disruptions in your business, allowing your long-term inventory performance to serve as your safeguard and prevent your IPI score from short-term fluctuations. This gives you more time to adjust your business and manage your inventory more efficiently in different circumstances.

What's the best way to improve my IPI score, and what should I prioritize?

While every seller's business is different, we recommend the following general guidelines to manage your inventory performance:

  1. Improve your 90-day rolling sell-through by maintaining a sell-through that places you in the green (or "good") range year-round. Go to the Inventory age page to see recommendations on your inventory. You can filter by inventory age ranges or sort the FBA sell-through column to see products with the lowest sell-through. You can improve your sell-through by improving the balance of your sold and on-hand inventory by increasing your sales, or by removing inventory that is not selling.
  2. Fix listing problems on time. Check your Stranded inventory regularly. Stranded inventory refers to sellable products in an Amazon fulfillment center that does not have an active offer on Amazon, and therefore cannot be sold to customers. If you have inventory that is incurring fees without the possibility of sales, it can reduce your IPI score. That is why it is important to fix listing issues in a timely manner.

Do new ASINs affect my IPI score?

Newly created ASINs in their first 90 days do not affect your IPI score.

Are removals included in IPI?

Once a removal order request is placed, the inventory no longer affects your IPI score. Remember that actions taken today, such as removal order, will take time to be reflected in your IPI score.

How can I improve my sell-through rate?

You can improve your sell-through by increasing sales of your on-hand inventory or removing the inventory that is not selling. To improve sales, consider your pricing, and where applicable, create sales, improve keywords, or advertise to promote your listings, such as using Sponsored Products.Consistently sending high volumes of inventory to Amazon may impact your sell-through rate if your volume of sales is not increasing at the same rate over the same time period.

How is the sell-through rate calculated?

Sell-through rate is updated daily and looks at past 90 days of shipped units and average inventory over that same period. We encourage you to try to maintain a sell-through rate in the green (or “good” rating) year round.

Your FBA sell-through rate is your sold and shipped units over the past 90 days divided by the average number of units in stock in our fulfillment centers during that period. We calculate your available average units by taking a snapshot of your inventory levels today and 30, 60, and 90 days ago. For example: Let’s say that you shipped 120 units in the past 90 days and had an average of 80 units available during that period. Your sell-through rate would be 120 divided by 80, which equals 1.5, as shown below.

Total units sold (cumulative) in the past 90 days 120 units
Date Today 30 days ago 60 days ago 90 days ago
Inventory available 80 units 150 units

(new shipment of 150 units received)

40 units 50 units

Average available inventory = (50 + 40 + 150 + 80) / 4 = 80 units

Sell-through rate = 120/80 = 1.5

Why don't I have an IPI score?

An IPI score is available only for sellers with a Professional selling plan, inventory at a fulfillment center, and recent account activity. If you are new to FBA or have not been active in the past 13 weeks, you may not have an IPI score until more data is available.

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