The Inventory Performance Index evaluates a seller’s performance based on how well he holds healthy inventories and products in stock.
Your task didn’t end here, you also need to keep an eye on the Amazon Inventory Dashboard to prevent potential sales losses, and you should follow Amazon’s suggestions for what you can do better.
Want to see your seller in the top 10% of sellers with the highest Inventory Performance Index values on the Amazon Inventory Dashboard?
How to Manage Excess Inventory Tool Helps eCommerce Seller
Amazon offers a tool called Manage Excess Inventory, which helps sellers identify listings with potentially inflated inventories and provides data to help them get a better return on their investment. To improve your excess inventory and performance, you need to make sure you don’t send too many units at once to Amazon ASINs that are slow to sell.
You also need to monitor the age of your inventory to prevent your Amazon ASINs from being shipped and overloaded with too many units at once.
If you run out of a popular product, lost sales are a missed opportunity to increase your IPI score. The FBA share price indicates how much value you derive from your products by keeping refillable ASINs in stock. A lower FBA share price does not reduce your IPI values, but if your SKU is marked as not replenished and hidden on the Restock Inventory page, it can be removed from the FPA share price calculation.
It is not in your best interest to hide refillable SKUs to increase your FBA stock ratios for three reasons. This blog explores the impact of refillable ASINs on the FPA share price and the IPI values of your products.
Inventory Performance Index
The Inventory Performance Index indicates how Amazon normally displays report information and is the standard for setting standards for inventory performance. Amazon says this metric is based on its ability to increase sales by storing popular products and efficiently managing its inventory.
The number of units and the cost of storage would probably be the result of measures that have been taken, such as lowering prices to increase sales – passes, eliminating excess units, etc. The value is based on costs that include shipping, storage, shipping, and other costs. For example, by using lighter colors, reducing fees to manage excess inventory or a lower price for the same product.
The IPI is consolidated into a single rolling metric, updated weekly by the US Bureau of Labor Statistics (BLS) and the International Monetary Fund (IMF).
When sales are high, as they often are in December, it is easy to maintain healthy inventories, especially when they are higher. Once sales subside, you must continue to manage your inventory and use the four influencing factors as a guide. The Inventory Performance Index includes new inventory limits and adjustment cycles that apply to sales, inventories, sales volumes, and the number of inventory units in the inventory system.
We will provide further details on the default storage limits when they enter into force on 1 July 2018. If you do not have an index value by this date, you will not receive it in the future.
The Speed Update will be announced later this month, along with the release of the next update for AMAZON Enterprise Edition.
Many self-publishers avoid carrying out competitive analyses because the process can be lengthy, but this is a costly mistake. The information provided by the Competitive Analyzer can help you learn the craft of your market, which will help you sell more books and improve your Kindle rankings.
The data itself can be intimidating at a glance, but there are things you can discover if you spend enough time collecting the data. Based on this information, you can judge how hard it will be to beat the competition. There are a number of things your software should make easy for you, such as no sales and more.