Watch the Amazon Inventory Strategies Webinar What Are The Consequences of Not Hitting the Target Score? Amazon lowered the target score to 450 for the remainder of 2020, though the target score is subject to change at Amazon’s discretion. Early on, the target score was 400, though starting in Q3 2020, the target score rose to 500. The target score is determined by Amazon based on the amount of storage Amazon thinks it will need to have space for all in-demand products in a given quarter. The score is measured on a scale of 0 to 1000. While a seller’s IPI changes as the rollup metrics change, Amazon evaluates the IPI each quarter. As such, it’s something that all sellers utilizing FBA must track and strive to improve. Failing to reach a certain score determined by Amazon for a given quarter can result in reduced storage and increased FBA fees the following quarter. The IPI is a score that is applicable to FBA ASINs only. All of a sudden, the stakes were higher, and there were consequences associated with inefficient inventory management. While that’s simple enough, many sellers and brand owners had to pivot on their inventory strategy to raise their score. Since FBA space is a finite resource, Amazon set up the IPI metric to ensure that all inventory was moving quickly enough, thus making sure there is enough space at FBA for in-demand items. As explained at the Boost Conference that year, more and more sellers were pushing inventory into FBA, and letting it sit. It’s not a move to punish third-party sellers. It’s important to have context when understanding why Amazon started tracking this metric in July 2018. The History of the Inventory Performance Index One of those metrics, called the Inventory Performance Index (IPI), is a score Amazon uses to assess how well sellers manage their inventory. Amazon sellers have to monitor a lot of metrics to make sure they’re complying with Amazon policies, and keeping their seller account in tip-top shape.
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