IPI (Inventory Performance Index)
Inventory Performance Index. This index applies only to FBA Sellers' products and is a score that will measure the performance of the stock held in storage.
Through this index and the score obtained, Amazon will adjust the FBA rates to the sellers depending on how they have performed. Therefore, the IPI is an element that FBA Sellers will need to pay close attention to avoid a rate increase or storage reduction.
Although the index score changes depending on how sellers' metrics change at the time, Amazon assesses it quarterly.
The ratios used by the algorithm to calculate the IPI score are based on: excess inventory, number of sales, stuck inventory, inventory in stock vs. sold inventory... etc.
