What is Amazon IPI Score and How Do You Improve It?
Amazon's Inventory Performance Index (IPI) is a score between 0 and 1000 that measures how efficiently you manage your FBA inventory. Maintaining a healthy IPI score is critical — a low score can result in Amazon restricting how much inventory you can send to their fulfillment centers, directly limiting your ability to scale.
What is the Amazon IPI Score?
The Inventory Performance Index (IPI) is a composite score that Amazon calculates weekly for FBA sellers. It reflects your overall inventory health across four key dimensions: excess inventory, sell-through rate, stranded inventory, and in-stock rate. The score ranges from 0 to 1000 — Amazon considers a score above 400 healthy, and scores below 400 can trigger storage limit restrictions.
The Four Components of IPI
- Excess inventory: products where you have more than 90 days of supply on hand — these incur higher storage fees and hurt IPI
- Sell-through rate: the percentage of inventory sold and shipped in the past 90 days — higher is better
- Stranded inventory: FBA units in Amazon's warehouse that are not linked to an active listing and therefore unsellable
- In-stock rate: the percentage of time your top ASINs are in stock — stockouts hurt IPI significantly
Why IPI Matters for CPG Brands
Amazon uses IPI to manage storage capacity across its fulfillment network. Sellers with low IPI scores receive lower storage limits, meaning you cannot send as much inventory to Amazon. During peak seasons (Q4, Prime Day), storage limits become especially constraining. Maintaining a high IPI ensures you always have the capacity to meet demand.
How to Improve Your IPI Score
- Remove or discount excess inventory that has been sitting longer than 60 days
- Create removal orders for truly dead stock rather than paying ongoing storage fees
- Fix all stranded inventory listings immediately — check the Stranded Inventory report weekly
- Improve sell-through rate with coupons, advertising, or price adjustments on slow movers
- Maintain healthy in-stock levels on your top ASINs by sending replenishment shipments before stockout
- Use Amazon's restock recommendations as a baseline guide
IPI Score Monitoring
Your IPI score is visible in Seller Central under Inventory > Inventory Performance. Amazon emails sellers when their IPI drops below 400. You should monitor the score weekly rather than reacting only when Amazon notifies you. The score updates weekly and reflects changes you make within the same week.
Storage Limits and IPI
When your IPI falls below Amazon's threshold, Amazon restricts your ASIN-level and category-level storage limits. This is called a restock limit. During high-demand periods, even sellers with good IPI can face storage constraints due to Amazon's network capacity — which is why maintaining IPI well above the minimum threshold provides a buffer of protection.
| IPI Score | Status | Impact |
|---|---|---|
| 700–1000 | Excellent | No storage restrictions, maximum flexibility |
| 400–699 | Healthy | No storage restrictions from IPI |
| 350–399 | At risk | Approaching threshold — act now |
| Below 350 | Restricted | Storage limits applied, restock limit in effect |
Amazon only emails you when your IPI drops below 400 — by which point storage restrictions may already be in place. Check your IPI in Seller Central every week, act on excess inventory and stranded listings proactively, and aim to stay above 500 so that any temporary dip does not push you below the threshold.
Frequently Asked Questions
The Inventory Performance Index (IPI) is a composite score that Amazon calculates weekly for FBA sellers. It reflects your overall inventory health across four key dimensions: excess inventory, sell-through rate, stranded inventory, and in-stock rate. The score ranges from 0 to 1000 — Amazon considers a score above 400 healthy, and scores below 400 can trigger storage limit restrictions.
Amazon considers a score above 400 healthy. Scores below 400 can trigger storage limit restrictions, meaning Amazon will reduce how much inventory you can send to their fulfillment centers. Maintaining a score well above 400 provides a buffer during peak seasons when even sellers with good IPI can face storage constraints.
The four components are: excess inventory (more than 90 days of supply on hand), sell-through rate (percentage of inventory sold and shipped in the past 90 days), stranded inventory (FBA units not linked to an active listing), and in-stock rate (percentage of time your top ASINs are in stock).
Remove or discount excess inventory sitting longer than 60 days, create removal orders for dead stock, fix all stranded inventory listings weekly, improve sell-through rate with coupons or advertising on slow movers, maintain healthy in-stock levels on top ASINs, and use Amazon's restock recommendations as a baseline guide.
Your IPI score is visible in Seller Central under Inventory then Inventory Performance. Amazon emails sellers when their IPI drops below 400. You should monitor the score weekly rather than reacting only when Amazon notifies you, since the score updates weekly and reflects changes made within the same week.
When your IPI falls below Amazon's threshold, Amazon restricts your ASIN-level and category-level storage limits — called a restock limit. This means you cannot send as much inventory to Amazon's fulfillment centers, which can directly limit your ability to meet demand, especially during peak seasons like Q4 and Prime Day.
About Perfality
Perfality is an end-to-end ecommerce and marketplace management agency trusted by 75+ global CPG and DTC brands including Spectrum Brands, Kenneth Cole, Black+Decker, Stella & Chewy's, and Galderma. With 8 years of hands-on experience and a 100+ specialist team based in Jaipur, India, Perfality helps brands grow on Amazon, Walmart, Chewy, Petco, and other major marketplaces through listing optimization, A+ content, PPC management, account operations, chargeback recovery, and data intelligence. Learn more at www.perfality.com.
Perfality's operations team manages FBA inventory health for 75+ global CPG brands — including IPI monitoring, excess inventory removal, and stranded listing resolution. Let's review your account.
