Author Topic: US Inventory Performance Index (IPI) threshold change for 2020  (Read 827 times)

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US Inventory Performance Index (IPI) threshold change for 2020
« on: October 11, 2019, 08:39:35 PM »
Hello from Fulfillment by Amazon,

Since we announced expansion of one-day deliveries, we have made Prime Free One Day available to members with no minimum purchase amount on more than 10 million products, coast to coast.  The customer response has been remarkable, and FBA sellers have benefited.  To make Prime Free One Day delivery possible, we invested hundreds of millions of dollars in our fulfillment and transportation network on behalf of sellers in Q2 2019 alone.  We continue to upgrade our network to further speed up deliveries and invest in infrastructure, tools, services, people, and programs that benefit FBA sellers.

While investing in our network, we need to manage our storage space so that we can continue delighting customers with products they love at faster delivery speeds.

Effective January 1, 2020, we are changing the IPI threshold for storage limits to 400 (previously 350). 


Storage limits will continue to be evaluated on a quarterly cycle.  For example, if your IPI score is less than 400 during the week of November 11, 2019, you will be notified of your potential storage limits for Q1 2020.  You will then have six weeks to improve your IPI score.  If your IPI score is still below 400 during the week of December 23, 2019, storage limits will apply for Q1 2020.  Sellers who maintain an IPI score of 400 or greater will have unlimited storage for standard size and oversize items (monthly storage fees and long-term storage fees still apply).

You can track your IPI on the Inventory Performance Dashboard, where we also provide you with ways you can improve your performance:

    Reduce excess inventory: Take action on the Manage Excess Inventory page to reduce your storage fees and carrying costs.
    Improve sell-through: Take action on the Inventory Age page to increase your FBA sell-through rate on low traffic and low-conversion products.
    Fix listings: Take action on the Fix Stranded Inventory page to ensure your inventory is available for purchase.

Free inventory removal promotion
To provide a head start on improving inventory health, we are offering a limited-time, free inventory removal promotion for all sellers with an IPI score of 350 or above at any point in October 2019. Sellers without an IPI score are not eligible for this promotion.


We will notify you if we end this promotion earlier.  To take advantage of this offer, you must submit a removal order before the promotion ends.
Go to Inventory Age and choose Create removal order from the menu next to any FBA item in your inventory.

You will not be able to send us more units of any ASINs you remove during the promotion until: 1) January 31, 2020, when this restriction expires, OR 2) your inventory level for the removed ASINs falls below your sales over the last 90 days for the removed ASINs.
 
Thank you.

The Fulfillment by Amazon team



  

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