What are the factors that affect Amazon's IPI? How to improve it?

Amazon merchants all know the importance of Amazon IPI. There are many factors that affect this data. Dear Amazon merchants, you can learn about the specific influencing factors so that you can make the next operational measures. What are the influencing factors of Amazon IPI?

What are the factors affecting Amazon IPI?

1. Excess product inventory

Blue Ocean Yiguan.com learned that in FBA inventory, if a product is in stock for more than 90 days, its inventory cost will be higher than the cost of selling it at a lower price or directly removing it; or if the product can be supplied for more than 90 days, then such a product is redundant. Amazon sellers can directly determine whether a product is redundant through the system in the recovery rate under the purchase cost in the product settings. Redundant products will directly affect the seller's IPI score

2. Product sales rate

This is the biggest factor affecting inventory performance. The higher the sell-through rate, the better the sales of the product. Stores with high sell-through rates are also more popular with the Amazon platform because this will bring more cash flow to the platform.

3. Amazon inventory with no sales information

This category of products refers to products that cannot be purchased by customers due to problems with the product information. The products need to continue to be stored in FBA and incur inventory fees.

4. Have stock in stock

This is the normal inventory portion that sellers keep in order to ensure their normal sales and maintain operations.

How to improve?

After you have a basic understanding of the factors that affect IPI, you can improve your IPI score through more targeted methods.

1. Amazon sellers need to get rid of their redundant product inventory. Close or delete inactive products through Removal orders, and also pay attention to clearing expired SKUs. The best frequency of clearing is once a week.

2. Since discontinued and restocked products do not affect the seller's IPI score, sellers can ignore the relevant suggestions on the restocking page. If sellers have time, it is best to use the excess inventory tool to learn about some products that are not recommended for restocking.

3. Since product sales rate is the most important factor affecting IPI, sellers need to pay close attention to it. Once new products are put into storage, they will affect the product sales rate, so sellers need to know the product delivery status. If necessary, they also need to accelerate product sales and circulation by adjusting product prices, holding promotional activities, etc.

4. Archived product listings will be included in the IPI statistical score. At the same time, product listings that have been converted from FBA logistics to MFN by sellers will also be included in the IPI statistical scope. Therefore, sellers can hide these product listings.

5. Sellers also need to consider the seasonal restrictions on Amazon inventory. Therefore, seasonal restrictions are affected by the available space and product categories. Therefore, when sellers prepare for the next quarter, it is best to know in advance the product categories with higher storage limits in Amazon. Generally speaking, sellers have a storage limit of no less than 25 cubic feet per product category. However, storage limits and excess fees have a greater and more obvious impact on large items, so when preparing for inventory, sellers are best to consider small products.

6. Since the IPI score is calculated every 90 days and is a factor in the next year’s Amazon logistics storage, even if the seller’s current IPI score is higher than 500, it is necessary to do a good job of inventory management. If the current seller has encountered a storage problem, the seller will have 6 weeks to remedy it.

Regarding the question raised at the beginning, we have already introduced it in the above content. In fact, there are many factors that affect Amazon's IPI. Therefore, if Amazon merchants want to improve it, they need to take measures. I hope the above content will be helpful to everyone.

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