Glossary

Amazon IPI score (Inventory Performance Index): meaning, drivers and mistakes

Updated · Ecomsellertool

Short answer

The IPI score, or Inventory Performance Index, is Amazon's measure of how efficiently a Professional seller manages FBA inventory, shown on the Inventory Performance dashboard and widely reported on a 0 to 1,000 scale. Amazon does not publish the formula but names the drivers: excess inventory, 90-day sell-through, stranded inventory and keeping popular products in stock. It matters because Amazon uses IPI, with sales forecasts and lead times, to set FBA capacity limits.

  • Amazon uses IPI to rate how efficiently a seller runs FBA inventory over time; only Professional selling plans get a score and the Inventory Performance dashboard.
  • Amazon does not publish the IPI formula. Industry guides from SPS Commerce and Flexport describe the score as running from 0 to 1,000.
  • Amazon counts an item as excess once it holds more than 90 days of supply against forecast demand, and suggests keeping 30 to 60 days of expected sales on hand.
  • FBA sell-through is units shipped in the past 90 days divided by average units on hand, averaged from snapshots taken today and 30, 60 and 90 days ago.
  • FBA capacity limits for Professional accounts are influenced by IPI together with sales forecasts, seasonality, scheduled deals, shipment lead time and fulfillment center capacity.
  • Newly created ASINs do not affect IPI for their first 90 days, and units drop out of the calculation once a removal or liquidation order is placed.

Definition: IPI score (Inventory Performance Index)

The IPI score, or Inventory Performance Index, is Amazon's rating of how efficiently a Professional seller manages FBA inventory. It reflects excess inventory, 90-day sell-through, stranded inventory and whether popular products stay in stock, and it is one of the inputs Amazon uses to set FBA capacity limits.

The IPI score is Amazon's report card for your FBA inventory: is the stock you keep at Amazon the right stock, and is it selling at a healthy pace? Professional sellers see it on the Inventory Performance dashboard, with the current week's score and past weeks. The rules on this page come from Amazon's US Seller Central help.

How is the IPI score calculated?

Amazon does not publish the formula. It says the score weighs recent and long-term performance, so it moves slowly in both directions. It does publish four drivers, each rated poor, fair, good or excellent:

DriverHow Amazon measures itWhat drags it down
Excess inventoryShare of FBA units with more than 90 days of supply against forecast demandOver-ordering, slow movers
FBA sell-throughUnits shipped in 90 days ÷ average units on handToo much stock for the sales it supports
Stranded inventoryShare of FBA units with no active offerListing errors left unfixed
FBA in-stock rateTime replenishable ASINs were in stock over 30 days, weighted by units sold over 60 daysBest sellers running out while slow SKUs sit

The formula Amazon spells out in most detail, with a worked example, is sell-through:

FBA sell-through = units shipped in the past 90 days ÷ average units available

The average comes from four snapshots: today, 30, 60 and 90 days ago. A SKU that shipped 270 units, with snapshots of 200, 120, 160 and 240 units, averages 180 on hand and scores 1.5.

In-stock rate is not a direct input. Amazon says it only hurts when popular products keep running out while the stock you still hold is slow, excess or aged.

Why does IPI matter for operations and growth?

Because it helps decide how much you can send in. Amazon says FBA capacity limits for Professional accounts are influenced by IPI, alongside sales history, seasonality, forecasts, new selection, scheduled deals, fulfillment center capacity and lead time. New Professional accounts, active in FBA for less than 39 weeks, get no limit yet. When on-hand stock plus open shipments exceeds the limit, Amazon blocks new shipments. A weak IPI can leave a best seller without room to restock before peak, which is how an inventory metric turns into stockouts.

It also tracks cost. Excess units run up storage fees, units stored 181 days or more add the aged inventory surcharge on top, and Amazon ties a higher IPI to lower storage costs.

Older guides talk about IPI thresholds and score-check weeks. Those belonged to storage volume limits, which Amazon replaced in March 2023 with one monthly capacity limit per storage type. Amazon's IPI FAQ still describes thresholds announced four to eight weeks ahead for storage volume limits, but its capacity limit page names no cutoff score. Treat IPI as a trend that feeds every month's limit, not a line to clear once.

What mistakes drag the IPI score down?

  • Sending far more than 90 days of supply at once. A big inbound lifts average on-hand stock, and units beyond 90 days of forecast supply count as excess even if you plan to sell them over 100 days. Because IPI feeds capacity, that drag can cost you space in the months after.
  • Leaving stranded inventory for later. Stranded units count against you while they cannot sell.
  • Removing stock too late. Units leave the calculation once a removal or liquidation order is placed, but the score catches up slowly. Act weeks before the month you need space for, not after its limit is announced.
  • Hiding SKUs as non-replenishable. Even hiding every SKU of an ASIN changes the in-stock rate only, not IPI.
  • Chasing the score. Starving best sellers raises sell-through until they stock out. Amazon treats a very high sell-through as a sign of scarce inventory, not a win.
  • Forgetting launches. Newly created ASINs are ignored for 90 days. Plan launch quantities for day 91.

How does Growth OS keep IPI healthy?

The base inventory and replenishment module in Ecomsellertool Growth OS tracks days of cover per SKU and channel, sets reorder points from real lead times and drafts POs and shipment plans before you run out. That balance of stock against sales is what the excess and sell-through drivers measure.

IPI is one score for your overall inventory performance, and it is not in the SP-API's FBA inventory reports, so tracking its drivers SKU by SKU is custom work we scope on top of the base. A module like that rebuilds them from reports on your own account: the Manage Inventory Health report (sell-through, days of supply, estimated excess units, age buckets), the Stranded Inventory report and the Restock report. It can then:

  1. Rank SKUs by how much each one adds to excess and drags sell-through.
  2. Alert on stranded units and route listing fixes to an owner.
  3. Cost each excess option side by side: markdown, extra ad spend, Multi-Channel Fulfillment, removal or liquidation.
  4. Keep planned FBA shipments inside your capacity limit, with the buffer held in Amazon Warehousing and Distribution (AWD), a 3PL or your own warehouse.
  5. Flag inbound shipments that would push a SKU past 90 days of supply.

You own the custom modules we build and your data; the Growth OS base is licensed to you.

Where should you start?

If your capacity limit keeps boxing in best sellers, or excess and stranded units keep growing, start with the free Quick Scan in the Ops Gap Diagnostic. To see the base system first, look at Growth OS.

Frequently asked questions

What is the IPI score in Amazon?

It is the Inventory Performance Index, a score on the Inventory Performance dashboard that rates how well a Professional seller balances FBA stock against sales. It is driven by excess inventory, sell-through, stranded inventory and in-stock performance on popular products.

What is a good IPI score?

Amazon does not publish a target number; it rates each of the four drivers from poor to excellent. Under the old storage-limit system, the thresholds in effect from May 2020 into 2021 were 400, then 500, then 450, according to SPS Commerce. Amazon replaced storage limits with monthly FBA capacity limits in March 2023, and its capacity limit help page lists IPI as one input without naming a cutoff score.

Why don't I have an IPI score?

Amazon only scores Professional sellers with inventory in its fulfillment centers and recent activity. New FBA sellers, accounts with no activity in the past 13 weeks and sellers whose FBA stock only fills off-Amazon orders through Multi-Channel Fulfillment may have no score.

Does marking a SKU as non-replenishable raise my IPI?

No. Amazon says that hiding the restock recommendation for every SKU of an ASIN only takes that ASIN out of your FBA in-stock rate; the score still reflects how that inventory performs on hand.

Sources

  1. Inventory performance, Amazon Seller Central Help (accessed 2026-09-24)
  2. IPI frequently asked questions, Amazon Seller Central Help (accessed 2026-09-24)
  3. FBA capacity limits, Amazon Seller Central Help (accessed 2026-09-24)
  4. Aged inventory surcharge, Amazon Seller Central Help (accessed 2026-09-24)
  5. Amazon announces new streamlined FBA capacity management system, Amazon (accessed 2026-09-24)
  6. Inventory management techniques and best practices, Amazon (accessed 2026-09-24)
  7. Amazon Warehousing and Distribution (AWD), Amazon (accessed 2026-09-24)
  8. Fulfillment by Amazon (FBA) Reports, Amazon Selling Partner API (accessed 2026-09-24)
  9. 4 Ways to Improve Your Amazon IPI Score + IPI Updates, SPS Commerce (accessed 2026-09-24)
  10. What Is the Amazon Inventory Performance Index (IPI) And How Can You Improve It?, Flexport (accessed 2026-09-24)

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