Most sellers don’t think about their IPI score until Amazon sends a warning. By then, storage limits are already kicking in, and sales start taking a hit. The score isn’t complicated once you understand what Amazon is actually tracking, and fixing it doesn’t require overhauling your entire operation. A few consistent habits make a real difference.
This guide walks you through what the Amazon IPI score measures, why it affects your account more than most metrics, and what sellers do to push it higher.
What Is the Amazon IPI Score?
IPI stands for Inventory Performance Index. It’s a score Amazon uses to measure how efficiently you manage your FBA inventory. The score runs from 0 to 1000, and Amazon updates it weekly.
Think of it as Amazon’s way of asking: Are you using warehouse space well, or are you tying up resources with slow-moving stock?
You can find your Amazon IPI score inside Seller Central under Inventory → Inventory Performance. Right at the top of the dashboard, Amazon shows your current score along with a breakdown of what’s pulling it up or down.
Why Does the Amazon IPI Score Matter?
Your Amazon IPI score has a direct impact on how much storage space you get at Amazon’s fulfillment centers. Drop below Amazon’s threshold, currently 400, and you’ll face storage volume limits during peak periods, including Q4. That means you can’t send in as much inventory as you need, right when demand is highest.
Beyond storage, a low IPI score signals to Amazon that your inventory management needs work. It won’t get your account suspended, but it does create friction: limited restock space, potential surcharges, and less flexibility when you need it most.
On the flip side, a consistently high score gives you more room. More storage, fewer restrictions, and the ability to scale without hitting a ceiling every time you want to send a new shipment.
Amazon has tightened FBA capacity allocations in recent years, with some sellers reporting storage reductions of up to 75% compared to previous periods. That makes maintaining a healthy IPI score even more important if you want consistent restock flexibility during peak demand cycles.
How Amazon Calculates Your IPI Score
Amazon doesn’t publish an exact formula, but it’s clear which factors carry the most weight. There are four main areas the algorithm looks at:
Excess Inventory
If you’re holding more stock than you’re likely to sell in the next 90 days, Amazon flags it as excess. This drags your score down because you’re occupying warehouse space without turning it over fast enough.
Sell-Through Rate
This measures how quickly your inventory sells relative to how much you have on hand. A higher sell-through rate tells Amazon your inventory is moving efficiently. Slow sellers hurt this number.
Stranded Inventory
Stranded inventory is stock sitting in Amazon’s warehouse that has no active listing, meaning it can’t be sold. This happens when listings get suppressed, deleted, or lose their buy box eligibility. Stranded inventory is wasted space, and Amazon penalizes you for it.
In-Stock Rate
For your best-selling ASINs, Amazon wants you to stay in stock. Running out of inventory on high-performing products hurts both your IPI and your sales rank.
What Is a Good IPI Score?
Amazon sets the minimum at 400. Drop that, and storage limits kick in automatically. But 400 is just the cutoff, not a target. Here’s a simple way to read the numbers:
| IPI Score | What It Means |
| Below 400 | Storage limits apply. You need to act fast. |
| 400 – 499 | You’re safe, but too close to the edge. |
| 500 – 599 | Decent. Most sellers sit here. |
| 600 – 749 | Strong. You have real flexibility. |
| 750+ | Excellent. Your inventory management is dialed in. |
Most experienced sellers aim for 550 and above as a working baseline. If you’re consistently hitting 650+, you’re in good shape. The higher you go, the more storage and restock room Amazon gives you, which matters most when you’re scaling or heading into peak season.
How to Improve Your Amazon IPI Score
Here’s what actually works:
Fix Excess Inventory First
Pull up your Inventory Performance Dashboard and look at the “Excess Inventory” section. Amazon will show you exactly which ASINs have more stock than they estimate you’ll sell in 90 days.
Your options: run a promotion to clear stock faster, lower the price temporarily, or use a removal order to pull the inventory back. Don’t let slow movers sit; every week they stay, they’re pulling your score down.
Improve Your Sell-Through Rate
Sell-through rate improves when you either sell more or send in less. If a product is moving slowly, resist the urge to restock it at the same level. Reduce your next shipment, or pause restocking entirely until you clear what’s already there.
If the product is worth saving, run Sponsored Products ads or a lightning deal to move units faster. A short price drop often costs less than the long-term storage fees you’re paying on idle stock.
Keep Stranded Inventory at Zero
Check your stranded inventory report weekly. Amazon shows you a list of stranded ASINs and usually tells you why each one is stranded. Fix the root cause, relist the product, update the listing, or contact Seller Support if needed.
If you can’t fix a stranded listing quickly, submit a removal order. Dead inventory is worse than no inventory.
Maintain Stock on Your Top ASINs
For your best sellers, running out of stock hurts more than just your Amazon IPI score; it tanks your organic ranking, too. Use Amazon’s restock recommendations as a baseline, but build your own lead times based on your supplier and shipping history. Don’t rely solely on Amazon’s estimate if your supply chain runs slower.
Use Removals and Liquidation Strategically
If you have old inventory that isn’t moving and promotions aren’t helping, liquidation is worth considering. Amazon’s Liquidations program lets you recover some value instead of paying ongoing storage fees. It’s not ideal, but it’s better than watching your IPI drop while fees pile up.
Conclusion
A good Amazon IPI score doesn’t happen by accident, but it’s not hard to maintain once it clicks. Most sellers who struggle with it are just reacting too late. Check your dashboard weekly, move slow stock before it piles up, and don’t let stranded listings sit. That’s really it. No complicated system, no expensive tools. Just consistent attention to a few numbers that Amazon is already showing you. Stay on top of those, and the score takes care of itself.
1. How often does Amazon update the IPI score?
Weekly, every Monday. Changes you make this week will start showing up in your score within a few days, though significant improvements usually take 2-4 weeks to fully reflect.
2. Can I sell on Amazon with a low IPI score?
Yes, but you’ll face storage volume limits if your score drops below 400. You can still sell, but you’ll have less flexibility on how much inventory you can keep at FBA.
3. How long does it take to improve an IPI score?
It depends on how far your score has dropped and what’s causing it. Fixing stranded inventory can show results within a week. Improving sell-through rate on slow movers takes longer, typically 4-8 weeks of consistent action.
