The Inventory Performance Index, or IPI, is Amazon’s score for how efficiently you manage FBA inventory. It affects how much you can store and send in, so a low score can limit sales during your busiest months. For supplement brands with steady demand, keeping IPI healthy is one of the easiest operational wins.
What the Inventory Performance Index Measures
Amazon scores IPI from 0 to 1,000. The score reflects how well you balance stock levels against sales. Four main factors drive it:
- Excess inventory: units that exceed expected demand.
- Sell-through rate: units sold compared with average units on hand.
- Stranded inventory: units in FBA without an active listing.
- In-stock rate: how often your replenishable ASINs stay available.
See Amazon’s IPI help page for current thresholds.
Why IPI Matters
Capacity limits are tied to performance. Sellers with weak scores may receive tighter limits and higher storage costs. As a result, they cannot stock up for Prime Day or Q4. In contrast, strong scores give more flexibility.
How to Raise Your Inventory Performance Index
- Fix stranded inventory first. Relist or remove these units. It is the fastest improvement.
- Reduce excess stock. Run promotions, create removal orders, or use liquidation for slow movers.
- Improve sell-through. Send smaller, more frequent shipments that match demand.
- Stay in stock on winners. Track lead times and reorder points for top sellers.
Forecasting for Supplements
Supplements have steady, repeat demand, which makes forecasting easier than in seasonal categories. Use 30, 60, and 90-day sales velocity, then add a buffer for promotions and supplier delays. In addition, watch expiration dates, because aging inventory can trigger extra fees and customer complaints.
Inventory turnover is closely linked to IPI. Our guide on calculating inventory turnover explains the math.
Using Reports to Monitor IPI
Check the FBA Inventory page weekly. It shows your current score, excess units, and recommended actions. Moreover, the Restock Inventory report suggests reorder quantities based on recent sales. Use both together so you neither overstock nor run out.
Common Inventory Performance Index Mistakes
- Sending a full production run to FBA instead of using a 3PL buffer.
- Ignoring stranded units after a listing edit or suppression.
- Launching many variations that sell slowly and drag down sell-through.
- Waiting until Q4 to fix a low score.
Reducing fees also helps margins. See our tips to lower FBA fees.
Conclusion
A strong Inventory Performance Index protects capacity, lowers storage costs, and keeps best sellers in stock. Clear stranded units, cut excess, ship to demand, and review your score every week. If you want help with inventory planning, reach out to Exclusiva Inc.
