Meikeduo is one of the largest e-commerce platforms in South America, with a large user base and abundant business opportunities. For sellers, it is very important to effectively utilize the official overseas warehouse capacity, because it is directly related to whether the store can grow, especially during the big promotion period. In order to more efficiently utilize the official overseas warehouse inventory, the Meikeduo platform has set the Inventory Performance Index (IPI). This article will introduce in detail how to effectively break through the official overseas warehouse capacity limit and increase the inventory capacity.
1. Understand the Inventory Performance Index (IPI).
First, let’s understand how the Inventory Performance Index (IPI) is calculated. This indicator is mainly applicable to sellers who use Meikeduo’s official overseas warehouses. Its purpose is to ensure the efficient use of inventory. The IPI indicator is calculated in a 2-month cycle. If the IPI index reaches 60 points or more, the inventory capacity will be increased in the next cycle; conversely, if it is less than 60 points, the inventory capacity will remain unchanged.
The calculation of the IPI indicator is affected by the following four dimensions:
The proportion of inventory that cannot be sold normally due to front-end page problems or 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 an age of more than three months).
The proportion of inventory that exceeds the product’s sales in the next 6 weeks (the system estimates the inventory required for 6 weeks of normal sales based on the product’s recent sales).
2. Solve the key issues of the IPI indicator.
For the above four dimensions, sellers need to take corresponding measures to improve the inventory performance indicators. Here are some suggestions:
Maintain the saleable status of goods: Timely repair unsaleable goods caused by front-end page problems or Listing problems. Ensure that the product can be sold normally on the platform.
Improve inventory turnover rate: Improve inventory turnover rate through a series of methods, including optimizing Listing, increasing exposure, participating in promotional activities to promote conversion, and placing advertisements to maximize product exposure.
Timely handle unsaleable inventory: For those goods that cannot be sold for various reasons, retrieve them in time or directly abandon them. This will reduce unnecessary inventory occupation.
Understand the evaluation rules for new listings: The initial score of a new listing is 100 points, but after 60 days, the platform will re-evaluate the score based on performance.
Submit a request for retrieval or disposal: Once a decision is made to retrieve or dispose of certain inventory, this part of the inventory will no longer be included in the IPI index.
Understand that goods that have not yet arrived at the warehouse are not included in the index: Goods that have not yet arrived at the warehouse will not affect the IPI index.
Conclusion:
On the Meikeduo platform, it is very important to effectively utilize the official overseas warehouse capacity. A breakthrough in storage capacity means the development and growth of the store. By understanding how the IPI index is calculated and taking corresponding improvement measures, sellers can better increase storage capacity and ensure more business opportunities on the largest e-commerce platform in South America. Therefore, daily maintenance of the IPI index is crucial to the success of e-commerce business.