Understanding Amazon's IPI Score and Storage Limits
Your Inventory Performance Index (IPI) score determines how much inventory you can store at Amazon's fulfillment centers. A low score means restricted storage and higher costs.
What Is the IPI Score?
The IPI is a number from 0–1,000 that measures how efficiently you manage your FBA inventory. Amazon evaluates IPI every quarter.
IPI Score Thresholds
| Score | Status | Impact |
|---|---|---|
| 400+ | Good | No storage limits |
| 350–399 | Warning | May face limits |
| Below 350 | Poor | Storage limits enforced, overage fees |
Factors Affecting IPI
- Excess inventory (30%) — Units unlikely to sell in 90 days
- Sell-through rate (25%) — Units sold and shipped over last 90 days ÷ average inventory
- Stranded inventory (25%) — Inventory without active listings
- In-stock rate (20%) — Percentage of time your replenishable ASINs are in stock
How to Improve Your IPI Score
Reduce excess inventory:
- Create removal orders for slow-moving products
- Run promotions or lower prices on aging inventory
- Use Amazon Outlet for excess stock
- Set up automated removal for items approaching 180 days
Improve sell-through:
- Optimize listings (title, bullets, images, A+ content)
- Run PPC campaigns on slow-moving products
- Adjust pricing strategy
- Consider Lightning Deals or coupons
Fix stranded inventory:
- Check Stranded Inventory report daily
- Resolve listing issues (suppressed, incomplete)
- Relist deactivated products
Maintain in-stock rate:
- Use replenishment alerts
- Ship inventory regularly using reliable freight partners
- Plan for lead times (sourcing + shipping + FC check-in)
Storage Overage Fees
If you exceed your storage limits:
- $10 per cubic foot per month for standard-size
- $10 per cubic foot per month for oversize
Seasonal Storage Considerations
- Q4 (Oct–Dec): Storage fees nearly triple
- Ship Q4 inventory early (September) to avoid October rate increases
- Remove slow sellers before October 1st
Strategic Inventory Management
The key to a healthy IPI score is consistent, right-sized inventory replenishment. Working with a freight partner like Indray who can guarantee reliable delivery schedules to Amazon FCs helps you maintain optimal stock levels without overstocking.
Contact us for a logistics consultation.
