Definition
The Inventory Performance Index is the score Amazon uses to decide how much storage capacity your account gets in FBA fulfillment centers. It rolls up four behaviors into a single number that updates weekly: how much excess inventory you’re carrying, how fast it’s selling through, whether listings have FBA stock attached but no buy box, and what percentage of your active SKUs have inventory available.
Amazon publishes the score in Seller Central under Inventory > FBA Inventory > Inventory Performance. The threshold has moved over the years (350, then 400, then 450 for some accounts, then back to 400). As of April 2026, sellers below 400 get capacity restrictions on standard-size storage. Sellers above 400 typically get unlimited storage, though Amazon still applies aged inventory surcharges separately.
The score is not published as an exact formula. Amazon describes the four components qualitatively. From observed seller data, sell-through rate and excess inventory each move the needle the most. Stranded inventory and in-stock rate matter at the edges.
How Amazon calculates IPI
Worked example: a $2.1M private label seller
A private label seller running 18 SKUs at $2.1M annual revenue (average selling price $34, average lead time 75 days from China) checks IPI on April 15, 2026:
- 4 SKUs are sitting on 142 days of supply (excess inventory)
- Trailing 90-day sell-through is 5.8 (units shipped per average unit on hand)
- 2 SKUs are stranded after recent listing suppressions
- 16 of 18 active SKUs have inventory available (in-stock rate 89%)
Their score: 437. Above the 400 threshold but with capacity headroom getting tight. If excess inventory creeps another 10%, they’re under threshold by Memorial Day.
The fix: pull excess inventory off Amazon (AWD or 3PL), unstrand the two suppressed listings, and tighten reorder timing on the remaining 16 SKUs. Two weeks of work moves the score to 540 and adds roughly 18% more storage capacity heading into Q4.
Why IPI matters for FBA sellers
IPI is distinct from FBA fee profitability. A SKU with strong IPI contribution can still be unprofitable after fulfillment fees, referral fees, and ad spend. The score tells Amazon you’re a good warehouse tenant. It does not tell you whether a product is making money.
The score also lags. New SKUs do not have enough sell-through history to score well, so launching three new products in a quarter can drag IPI down for 90+ days even if those products sell through quickly. If your account sits near the threshold, plan launches around the score window or absorb the temporary drag in your reorder math.
Common mistakes
- Treating IPI as a profitability metric. It measures storage efficiency, not margin. A high-IPI catalog can still bleed cash through fees and ad spend.
- Ignoring stranded inventory. Two stranded SKUs can knock 30+ points off the score. Check Seller Central > Inventory > Manage Stranded Inventory weekly.
- Reacting to weekly score changes. IPI updates each Monday but reflects trailing 90-day behavior. One week of bad data will not change the trend, and chasing the weekly number leads to over-corrections.
