Inventory Performance Index threshold will change to 450

Remember the times when the dreaded Inventory Performance Index was introduced with a 350 points target a few years ago?

Amazon, which keeps making their policies stricter and difficult to follow every day is now increasing the minimum score for avoiding storage limits being imposed to 450.

While most sellers are being hit with low maximum allowed replenishment quantities even if their IPI score meets their criteria, this move will lead to even more uncertainty for those, who are offering seasonal products, for example.

Here you can view a copy of the original e-mail notice sent to third party Amazon Sellers:

Here is the full announcement in English:

Hello,

Thank you for your cooperation as we implemented policies to ensure that all sellers have space for their products this holiday season.

Independent businesses like yours that sell on Amazon, nearly all of which are small- and medium-sized businesses, have surpassed $4.8 billion in worldwide sales so far this holiday season. That’s an increase of over 60% from last year. Congratulations, and thank you for providing terrific selection and low prices to customers.

As the new year approaches, we are lowering the Inventory Performance Index (IPI) threshold to 450:

• If your IPI is 450 or above in week 51 of 2020, starting January 1, 2021, you will not be subject to storage volume limits.
• If your IPI is below 450 in week 51 of 2020, you will continue to be subject to storage volume limits. We will notify you of your next period limits, which will go into effect on February 1, 2021.

We encourage you to continuously manage inventory. Visit your Inventory Performance dashboard for ways to increase your IPI by reducing excess inventory, improving your sell-through, or fixing stranded listings.

All products are still subject to restock quantity limits. You can view quantity limits for your products on Restock Inventory.

The Fulfillment by Amazon team

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