Meikeduo, as the largest cross-border e-commerce platform in Latin America, has set an important performance indicator for sellers using its official overseas warehouses – the Inventory Performance Index (IPI), which aims to efficiently utilize the official overseas warehouse inventory and allow sellers to reasonably increase inventory capacity. This indicator is very important for sellers because it determines whether sellers can obtain larger inventory capacity.
The calculation method of the Inventory Performance Index (IPI) is relatively simple, with a two-month cycle. If the seller’s IPI index score is above 60 points, the inventory capacity will be increased in the next cycle; conversely, if the IPI index score is below 60 points, the inventory capacity in the next cycle will remain unchanged.
The main factors affecting the IPI index score are the following four dimensions:
The proportion of inventory that cannot be sold normally due to front-end page problems/Listing problems.
The proportion of inventory that has not been sold through overseas warehouses or other channels in the past 30 days.
The proportion of inventory that has been in storage for more than two months and has incurred long-term storage fees (in Chile, the proportion of inventory with a storage age of more than three months).
The proportion of inventory that exceeds the sales volume of the product in the next 6 weeks (the system will estimate the inventory required for normal sales in 6 weeks based on the recent sales volume of the product).
For the above four dimensions, sellers need to solve the problems in a targeted manner to maintain or improve the IPI index score, so as to obtain a larger inventory capacity.
Maintain the saleable status of the product: promptly fix the front page problem or Listing problem to ensure that the product can be sold normally.
Boost sales and speed up inventory turnover: optimize Listing, accurately embed words to increase exposure; participate in promotional activities, seize every platform promotion opportunity to promote conversion; place advertisements to maximize product exposure.
Timely retrieve or abandon the inventory of unsaleable goods: For those goods that cannot be sold for various reasons, promptly retrieve them and send them to the cooperative overseas warehouse or own warehouse; if there is no secondary use value for the goods, you can choose to abandon them directly.
It should be noted that:
The initial index of the new Listing is 100 points, and the platform will re-evaluate the score based on performance after 60 days.
After submitting a request for retrieval or disposal, this part of the inventory will no longer be included in the IPI index.
Goods that have not arrived at the warehouse do not affect the IPI index.
For sellers, whether the storage capacity can be broken through means whether the store can be expanded, especially during the promotion period, so daily maintenance of the IPI index is very important. Sellers should pay close attention to their IPI index scores and optimize inventory management in a targeted manner based on performance to increase storage capacity and achieve greater development. Meikeduo’s IPI index is set to ensure the inventory management efficiency of the entire platform, and at the same time provide sellers with better development opportunities.