Inventory performance

The Inventory Performance dashboard helps you identify opportunities to grow your sales, reduce costs, and track key performance metrics.

Your IPI score measures how efficient and productive you are in managing your FBA inventory. Multiple factors can influence your IPI score, but the most important factors are your actions. Remember to do the following:

• Maintain a balanced inventory level between sold and in-stock inventory while avoiding excess inventory (overstock).
• Avoid long-term storage fees.
• Fix listing problems.

In-stock rate is not included as an influencing factor in Canada. But we encourage you to keep your most popular products in stock as much as possible to meet demand and maximize customer satisfaction.

For more information, go to IPI frequently asked questions.

There are three categories of recommendations to help you improve your IPI:

• Reducing excess (overstock) inventory
• Improving your 90-day rolling sell-through by maintaining the right balance of inventory over the same time period
• Ensuring that inventory is buyable by fixing listings that are stranded

The IPI dashboard displays a performance bar for each of the three categories:

• Excellent (dark green)
  
  

• Good (light green)
  
  

• Fair (yellow)
  
  

• Poor (red)
  
  

The Inventory Performance page also provides additional metrics within each factor, which you can see by selecting Show more details. After selecting Show more details for each category, you’ll see inventory management tools that provide recommendations to improve your performance.

We consider an item excess (overstock) if it has over 90 days of supply based on the forecasted demand. Track your excess inventory percentage, which is the percentage of your FBA inventory units that have been identified as excess.

In addition to the performance bar, three related metrics are shown with the excess inventory percentage on the Inventory Performance dashboard:

• Excess units is the number of units for which it costs you more to do nothing and pay the storage fees instead of taking an action like marking down the price or removing inventory. This value is based on the customer demand of your product and product costs (including fees and cost of goods).
• Excess units is the number of units for which it costs you more to do nothing and pay the storage fees instead of taking an action like marking down the price or removing inventory. This value is based on the customer demand of your product and product costs (including fees and cost of goods).
• Estimated total storage cost is the sum of estimated costs that you would incur if you take no action and leave your inventory idle in the fulfillment center over a three-year period. This includes monthly storage fees and long-term storage fees.
• The Reduce excess inventory button shows how many SKUs you have with excess inventory. Click the button to visit the Manage excess inventory page and take action on the inventory.

When inventory is not available for purchase due to a listing problem, it results in lost sales and storage costs. This inventory is referred to as stranded inventory. Your stranded inventory percentage is measured by the percentage of your FBA inventory units that are currently not available for purchase on Amazon.

In addition to the performance bar, two related metrics are shown with the stranded inventory percentage on the Inventory Performance dashboard:

• Stranded units is your total count of units in a fulfilment centre without an active listing.
• The Fix listings button shows how many SKUs have units in a fulfilment centre but do not have an active listing. For more information, go to Stranded inventory (overview).

Maintain the right balance of inventory with your rolling 90-day FBA sell-through rate. This rate represents your sold and shipped units over the past 90 days divided by the average number of units in stock in our fulfilment centres during that period.

In addition to the performance bar, two related metrics also appear with your FBA sell-through rate on the Inventory Performance dashboard:

• Units sold (past 90 days) are the total FBA units sold and shipped in the past 90 days.
• The Improve sell-through button shows the number of ASINs that have an opportunity to improve sell-through. Click the button to go to Inventory age for recommendations.