Amazon’s storage limit is a restriction policy on the seller’s warehouse capacity based on the volume of goods (cubic feet). Amazon’s warehouse resources are limited. In order to scientifically and rationally allocate warehouse capacity to each seller, Amazon has formulated Amazon’s inventory performance evaluation index, the full name of which is inventory performance index, or IPI for short.
IPI is a score that measures the overall performance of the seller’s FBA inventory over a period of time. At the same time, the IPI score is also an important factor in measuring the seller’s Amazon storage limit, and it can effectively promote sales by stockpiling best-selling products and efficiently managing existing inventory. Amazon updates the IPI score once a week. Sellers who meet the IPI score can enjoy unlimited storage space in the next quarter; sellers who do not meet the standard will be subject to storage capacity restrictions, and inventory that exceeds the storage limit capacity will be charged a monthly storage excess fee.
The IPI score is calculated based on the ability to drive sales through inventory management. The specific standards are as follows:
IPI ≥ 550, excellent business capabilities;
550>IPI ≥ 350, inventory performance is within the normal range and there is room for improvement;
IPI<350, immediate measures should be taken to improve the score.
View path: Inventory – Inventory Planning – Inventory Dashboard Performance – Inventory Performance.