BASIC ELEMENTS OF AMAZON LISTING
The Inventory Performance dashboard helps you identify opportunities to grow your sales, reduce costs, and track key performance metrics.
Inventory Performance Index
The Inventory Performance Index, or IPI, is a metric to gauge your inventory performance over time.
IPI score measures how efficient and productive you are in managing your FBA inventory. Multiple factors could influence your IPI score, however, the most important ones are your actions:
- Maintain a balanced inventory level between sold and on-hand inventory and avoid excess and aged inventory.
- Avoid long-term storage fees.
- Fix listing problems.
- Keep your most popular products in stock at the right levels, when possible, to meet customer demand and maximize customer satisfaction.
For answers to common questions, go to IPI frequently asked questions.
Categories that influence your IPI score
There are four categories of recommendations to help improve your IPI score:
- Avoiding excess and aged inventory. A good guideline is to maintain enough inventory to cover 30 to 60 days of your expected sales.
- Improving your 90-day rolling sell-through by maintaining the right balance of inventory over the same time period
- Ensuring that inventory is buyable by fixing listings that are stranded
- Increasing sales by keeping popular items in stock
The Inventory Performance dashboard displays a performance bar for each of the four categories:
- Excellent (dark green)
- Good (light green)
- Fair (yellow)
- Poor (red)
The Inventory Performance page also provides additional metrics within each factor, which you can see by selecting Show more details. Clicking the Show more details box associated with each category will take you to related inventory management tools that provide recommendations to improve your performance.
Excess inventory percentage
We consider an item to be excess if it has over 90 days of supply based on the forecasted demand.
Track your Excess inventory percentage, which is the percentage of your FBA inventory units that have been identified as excess.
In addition to the performance bar, three related metrics are displayed with the excess inventory percentage on the Inventory Performance dashboard:
- Excess units is the number of units for which it costs you more to do nothing and pay the storage fees instead of taking an action such as marking down the price or removing inventory. This value is based on the customer demand for your product and product costs (including fees and the cost of goods).
- Estimated total storage cost is the sum of estimated costs that you would incur if you took no action and left your inventory idle in the fulfillment center over three years. This includes monthly inventory storage fees and long-term storage fees.
- The Reduce excess inventory button shows how many SKUs you have with excess inventory. Click the button to go to Manage Inventory Health and take action on the inventory.
Stranded inventory percentage
When inventory is not available for purchase due to a listing problem, it results in lost sales and storage costs. This inventory is referred to as stranded inventory. Your stranded inventory percentage is measured by the percentage of your FBA inventory units that are currently not available for purchase on Amazon.
In addition to the performance bar, two related metrics are displayed with the stranded inventory percentage on the Inventory Performance dashboard:
- Stranded units is your total count of units in a fulfillment center without an active listing.
- The Fix listings button shows how many SKUs have units in a fulfillment center but do not have an active listing. Click the button to go to Fix stranded inventory.
FBA sell-through rate
Maintain the right balance of inventory with your rolling 90-day FBA sell-through rate, which is your units shipped over the past 90 days divided by the average number of units on hand in our fulfillment centers during that time period.
In addition to the performance bar, two related metrics are displayed with your FBA sell-through rate on the Inventory Performance dashboard:
- Units sold (past 90 days) are the total FBA units sold and shipped in the past 90 days.
- The Improve sell-through button shows the number of ASINs that have an opportunity to improve sell-through. Click the button to go to Manage Inventory Health to see recommendations.
FBA in-stock rate
Keeping popular, replenish-able products in stock helps maximize your sales. You can track your performance in this category using the FBA in-stock rate, which is the percent of time your replenish-able FBA ASINs have been in stock during the last 30 days, weighted by the number of units sold for each SKU in the last 60 days.
You can indicate that a SKU is replenish-able in Restock inventory by going to the drop-down menu in the Action column and selecting Hide recommendation. Hiding all SKUs associated with an ASIN will exclude the ASIN from your FBA in-stock rate and estimated FBA lost sales.
In addition to the performance bar, two related metrics are displayed under the replenish-able FBA in-stock rate percentage on the Inventory Performance dashboard:
- Estimated FBA lost sales in the last 30 days is equal to the forecasted unit sales on days that your products were out of stock multiplied by the average sales price.
- The Restock today button shows the number of SKUs for which the days of supply is less than the restock lead time. Orders from your supplier may need to be expedited to avoid going out of stock.