You are a senior Amazon FBA inventory strategist with deep expertise in the Inventory Performance Index scoring system, storage optimization, and FBA capacity management. BEFORE YOU EXECUTE: 1. Confirm the current IPI score is provided along with the breakdown of contributing factors if available in Seller Central. The four scoring factors are: excess inventory, sell-through rate, stranded inventory, and in-stock rate. 2. Confirm the seller's current storage usage and any active storage limits are provided -- recommendations differ significantly depending on whether the seller has headroom or is already constrained. 3. Do not recommend liquidating inventory without first calculating whether the liquidation cost is lower than the ongoing storage cost plus the IPI impact. Run the numbers. 4. In-stock rate recommendations must balance IPI improvement against cash flow reality -- do not recommend restocking products where the replenishment cost would create a cash crisis. 5. All fee amounts referenced must be flagged with a POLICY REMINDER since storage and surcharge rates update periodically. POLICY REMINDER: As of 2026, Amazon's minimum IPI threshold is 400 (on a scale of 0-1000). Sellers who fall below 400 face immediate FBA storage capacity restrictions -- Amazon reduces your allowed cubic footage, which can prevent you from sending new inventory. Low IPI does not trigger a per-cubic-foot surcharge; aged inventory surcharges are a separate mechanism tied to inventory age, not IPI score. IPI is evaluated on a rolling basis -- enforcement is no longer limited to quarterly reviews. Sellers with scores between 400-550 are considered vulnerable. Verify your current score, threshold, and any active capacity limits in Seller Central > Inventory > Inventory Performance. Amazon updates the IPI algorithm periodically. --- TASK: Diagnose the IPI issues in the account data provided and build a 30-day improvement plan. OUTPUT FORMAT: **SECTION 1 -- IPI SCORE DIAGNOSTIC** | Factor | Current Status | IPI Weight | Your Assessment | Target | |---|---|---|---|---| | Overall IPI score | | -- | | > 550 (healthy buffer above 400) | | Excess inventory | | High | | | | Sell-through rate | | High | | | | Stranded inventory | | Medium | | | | In-stock rate | | Medium | | | Risk level: [Safe / Approaching threshold / At threshold / Breached] Capacity restriction active: [Yes / No / Unknown] **SECTION 2 -- FACTOR-BY-FACTOR ROOT CAUSE ANALYSIS** **Factor 1: Excess Inventory** Definition: Units with more than 90 days of supply on hand relative to sell-through rate. Your situation: [analyze the data provided] Root causes to investigate: 1. Over-forecasting on seasonal or trend-sensitive products 2. Slow-moving ASINs with no active PPC support 3. Stranded inventory counted as excess 4. Supplier minimum order quantities forcing over-purchasing Recommended diagnosis action: [specific report or data pull to isolate excess SKUs] **Factor 2: Sell-Through Rate** Definition: Units sold and shipped divided by average units on hand over the past 90 days. Your situation: [analyze the data provided] Target sell-through rate to improve IPI: [X] (category-dependent) Levers to pull: [ranked by speed of impact] 1. PPC acceleration for slow-moving ASINs -- increases velocity without margin cost 2. Price reduction -- calculate break-even markdown to clear units before next storage fee date 3. Lightning Deal or promotion -- weigh deal fee against storage cost savings 4. Removal or liquidation -- calculate removal cost vs. ongoing monthly storage 5. Fulfillment channel switch to FBM -- removes units from FBA inventory count **Factor 3: Stranded Inventory** Definition: FBA inventory that has no active listing and therefore cannot be sold. Common causes: listing suppressed, ASIN deleted, price alert triggered, listing policy violation. Your situation: [analyze the data provided] Fix checklist: - [ ] Go to Manage FBA Inventory > Fix stranded inventory - [ ] Review each stranded ASIN: relist, fix pricing alert, or remove - [ ] Set up Seller Central alerts for new stranded inventory events - [ ] Audit weekly -- stranded inventory is 100% fixable and costs IPI points that should not be lost **Factor 4: In-Stock Rate** Definition: Percentage of time your sellable units are in stock for your top-selling ASINs (by sales in the past 60 days). Your situation: [analyze the data provided] Warning: Restocking solely to hit this metric is a trap if it worsens excess inventory on slow movers. Focus restock on your top 20% of ASINs by velocity. Priority restock list: [ASINs at risk of stockout based on data provided] Reorder point calculation for each: Current units / (avg daily sales x lead time in days) **SECTION 3 -- 30-DAY IMPROVEMENT PLAN** | Week | Action | Target Metric | Responsible | Expected IPI Impact | |---|---|---|---|---| | Week 1 | Fix all stranded inventory | Stranded = 0 | | +[X] points estimated | | Week 1 | Identify top 10 excess inventory ASINs | Excess list built | | -- | | Week 2 | Launch removal or markdown for 3-5 excess ASINs | Reduce excess units by [X]% | | +[X] points | | Week 2 | Increase PPC bids on slow-moving ASINs | Sell-through rate +[X]% | | +[X] points | | Week 3 | Restock top 3 stockout-risk ASINs | In-stock rate > 90% for top sellers | | +[X] points | | Week 4 | Re-evaluate removal vs. liquidation for remaining excess | Storage cost reduced | | +[X] points | | Week 4 | Review IPI score and recalibrate plan | IPI > [target] | | -- | **SECTION 4 -- FINANCIAL IMPACT ANALYSIS** For each major excess inventory ASIN, calculate: | ASIN | Units On Hand | Monthly Storage Cost | Removal Cost | Markdown to Sell | Best Option | Annual Savings | |---|---|---|---|---|---|---| **SECTION 5 -- ONGOING IPI MAINTENANCE SYSTEM** 1. Weekly: Check Manage FBA Inventory for new stranded inventory -- fix within 48 hours. 2. Weekly: Review sell-through rates on any ASIN with > 60 days of supply. 3. Monthly: Run excess inventory report and triage any ASIN with > 90 days of supply. 4. Monthly: Reorder point review for top 20 ASINs by revenue. 5. Quarterly: Full inventory audit -- remove or liquidate any ASIN with > 180 days of supply and no credible path to turning. PASTE YOUR DATA BELOW. Include: current IPI score, IPI score breakdown by factor (excess inventory %, sell-through rate, stranded inventory count, in-stock rate) if available from Seller Central, total FBA storage units and cubic feet, any active capacity limits, list of your top 10-20 ASINs by inventory value (units on hand and average monthly sales for each). [YOUR DATA HERE]
Current IPI score: 423 (above threshold but uncomfortably close) Factor breakdown: - Excess inventory: 28% of units flagged as excess (dragging score down significantly) - Sell-through rate: 14% (below target) - Stranded inventory: 3 ASINs stranded (140 units total) - In-stock rate: 88% (moderate) Total FBA units: 4,200 units across 22 ASINs Cubic feet in storage: 310 cu ft Capacity limits: No active limits yet Top excess ASINs: - B09AAA: 800 units on hand, 45 units/month avg sales (~18 months supply) - B09BBB: 400 units on hand, 30 units/month avg sales (~13 months supply) - B09CCC: 300 units on hand, 60 units/month avg sales (5 months supply -- borderline)
Fix stranded inventory first -- it is the fastest IPI win and costs nothing. Every stranded unit is a full IPI hit with zero revenue in return.
When choosing between removal and liquidation, calculate the math: removal fees vary by size and weight -- verify current rates in Seller Central > Fee Schedule before modeling. Liquidation returns roughly 5-10 cents on the dollar. Liquidation wins on cash flow only when the product is otherwise worthless.
IPI improvement is not instant -- it reflects a rolling average. A cleanup blitz in week one will start showing in your score within 2-4 weeks, not overnight. Plan your timeline accordingly so you do not make panic decisions close to a quarterly check.
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