Your Inventory Performance Index (IPI) score on Amazon is more than just a number—it directly impacts your ability to store inventory and maintain sales momentum. A low IPI score can result in storage restrictions, higher fees, and even lost sales. But improving your IPI can feel like a constant battle, especially if you’re dealing with overstocked items, stranded inventory, or low sell-through rates. Here’s how you can address these challenges and take control of your IPI.
Why Your IPI Score MattersThe IPI score is Amazon’s way of measuring how efficiently you manage your inventory. A low score means you’re not using your storage effectively, which can lead to reduced storage capacity or additional fees. On the flip side, a high IPI score gives you more freedom to store and sell products on Amazon without these limitations.If your IPI score is below Amazon’s threshold, you could face storage restrictions, limiting the number of units you can send to FBA warehouses. This directly impacts your ability to maintain consistent stock levels, especially during peak seasons.Key Issues That Hurt Your IPI ScoreA low IPI score isn’t just a result of poor performance—it’s the outcome of specific problems in how you manage your inventory. Let’s look at the pain points sellers commonly face:
Excess InventoryOne of the most common reasons for a low IPI score is excess inventory. When your products sit too long in Amazon’s warehouses without selling, they not only take up space but also rack up storage fees. This leads to higher costs and a lower IPI score. Failing to move this stock quickly means you’re wasting resources that could be used more efficiently elsewhere.Stranded InventoryStranded inventory occurs when your products are in Amazon’s fulfillment centers but aren’t available for sale due to listing issues. This is a double loss—you’re paying for storage while losing out on potential sales. Without addressing stranded inventory, your IPI score will continue to drop, and these products will simply sit idle.Low Sell-Through RateIf you’re struggling with low sell-through rates, it means your products are not selling fast enough relative to the amount you’ve sent to FBA. This not only impacts your cash flow but also leads to long-term storage fees and a declining IPI score. A low sell-through rate signals to Amazon that your products aren’t in high demand, limiting your ability to send more inventory.Out-of-Stock IssuesRunning out of stock on popular items can hurt your IPI score as well. Stockouts signal poor inventory management, leading to missed sales opportunities and an inability to capitalize on high-demand periods. If your best-selling products are consistently out of stock, you’re not only losing sales but also negatively impacting your overall IPI score.How Polaris Perspective Helps You Boost Your IPI ScoreAt
Polaris Perspective, we understand the importance of maintaining a healthy IPI score and the challenges that come with it. Here’s how we help you address these
pain points and improve your score:
Reduce Excess InventoryWe help you identify slow-moving products and implement strategies to clear out excess inventory. Whether through promotions, price adjustments, or liquidation, we ensure that your products aren’t just sitting in Amazon’s warehouses incurring fees. This keeps your storage costs down and improves your IPI score by increasing your sell-through rate.Fix Stranded InventoryWe take a proactive approach to resolving stranded inventory issues. By regularly monitoring your listings and quickly addressing any errors that cause products to become stranded, we help you get those items back up for sale, reducing the impact on your IPI score and unlocking revenue opportunities.Increase Sell-Through RatesTo improve your sell-through rate, we implement data-driven strategies to align your inventory levels with actual demand. This includes forecasting future sales trends and adjusting stock levels accordingly. By optimizing your stock turnover, we help you increase sales velocity and reduce long-term storage fees, which directly improves your IPI score.Prevent Stockouts with Better Inventory PlanningWe help you maintain optimal stock levels for your best-selling products so you’re always ready to meet demand. Our inventory management solutions ensure you don’t miss out on sales opportunities due to stockouts, keeping your IPI score high and your products readily available for purchase.Don’t Let Common Misconceptions About the IPI Hold You BackMany sellers believe that just
keeping inventory in stock is enough to maintain a healthy IPI score. However, factors like
excess inventory,
sell-through rates, and
stranded inventory are just as important. Ignoring these areas will result in storage limitations and missed opportunities for growth.
Take Control of Your IPI with Polaris PerspectiveAt
Polaris Perspective, we help Amazon sellers maintain a healthy IPI score by addressing the
key factors that Amazon tracks. From
inventory management to
sell-through rate optimization, we provide the tools and strategies you need to ensure your inventory is always working for you—not against you.Don’t let a low IPI score
limit your success—reach out to us today and learn how we can help you improve your IPI score, reduce storage costs, and keep your business growing.
ConclusionA low IPI score can significantly hurt your Amazon business, from
storage limitations to increased fees and missed sales opportunities. But with the right strategies in place, you can turn things around. At Polaris Perspective, we focus on
solving the inventory challenges that hold sellers back, ensuring your IPI score stays healthy and your business thrives.
Key TakeawayDon’t let
excess inventory,
stranded listings, or
stockouts drag down your IPI score. Polaris Perspective is here to help you tackle these challenges head-on, so you can focus on growing your business while we ensure your inventory management aligns with Amazon’s best practices.