1. What Is the IPI Score and Why It Matters

The Inventory Performance Index (IPI) determines how much FBA storage you can use. A low score means limited inbound shipments and higher storage fees.

Amazon evaluates:

  • Excess inventory percentage
  • Sell-through rate
  • Stranded inventory percentage
  • In-stock rate of key ASINs

Falling below ~400 can trigger storage caps and penalties — making proactive inventory management essential.


2. Common Reasons IPI Scores Drop

  • Stranded inventory tied to inactive listings
  • Excess or aging stock in FBA
  • Suppressed listings from pricing mismatches
  • Poor advertising or low sell-through

When Amazon’s “Fair Pricing” algorithm flags an item, it can deactivate it instantly, even if you’re below MSRP — disrupting both sales and IPI metrics.


3. Fixing Pricing Errors

  1. Visit Manage Inventory → Suppressed in Seller Central.
  2. Compare “Your Price” to “Reference Price” data.
  3. Adjust pricing to align with Amazon’s thresholds.
  4. Use a rule-based pricing strategy to prevent auto-suppressions.
  5. Reactivate listings manually once corrections are made.

4. Solving Inventory Problems

Stranded Inventory:

  • Relink listings to correct ASINs.
  • Delete old SKUs.
  • Enable automatic removals for unfulfillable units.

Excess Inventory:

  • Use multi-unit bundles or limited-time promos.
  • Run PPC campaigns to improve velocity.
  • Consider FBA Liquidations or Outlet Deals.

Stockouts:

  • Use rolling forecasts to maintain in-stock rates.
  • Balance FBA with FBM or 3PL for continuity.

5. Improving IPI Score Fast

  • Keep stranded inventory <1%
  • Maintain a sell-through rate >2.0
  • Remove aging inventory over 90 days old
  • Optimize inbound shipments based on velocity
  • Monitor IPI weekly and respond before caps hit

6. How Marketplace Valet Helps

Our Amazon-native team manages:

  • Account health & IPI improvement
  • Pricing optimization and compliance
  • Inventory planning and FBA forecasting
  • Ad management for faster sell-through

We help brands stabilize IPI scores, resolve suppressed listings, and recover lost sales — fast.


7. Final Takeaway

Amazon’s system punishes slow, mismatched, or excess inventory. But with the right data-driven strategy, sellers can fix IPI issues, resolve pricing suppressions, and optimize their entire FBA workflow.

📈 Marketplace Valet helps brands operate at peak Amazon performance — even under the toughest policies.
👉 www.MarketplaceValet.com

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