The Amazon IPI score is a key metric that determines how much inventory sellers can store in FBA warehouses. Understanding how the Amazon IPI score works helps sellers avoid storage limits, reduce fees, and improve overall inventory performance.
Amazon continues to tighten inventory control across its fulfillment network. In 2026, updated Inventory Performance Index (IPI) rules place even greater emphasis on efficient inventory management, sell through performance and storage optimization. For FBA sellers, understanding these changes is critical to avoiding storage limits, excess fees and operational disruptions.
This guide explains what has changed in Amazon IPI score rules and outlines practical strategies to maintain a healthy score throughout 2026.
Amazon IPI Score Thresholds in 2026
For 2026, Amazon has set the core IPI threshold at 450. Sellers who fall below this level face storage restrictions and higher inventory related fees.
Key ranges to understand:
Below 350
Additional excess inventory fees apply, currently reaching up to $10 per cubic foot for units classified as overstock.
Above 550
Sellers receive maximum storage flexibility, including higher capacity limits for standard and oversized inventory, with reduced storage pressure.
450 to 549
Standard storage limits apply. Inventory must be actively managed to prevent restrictions.
Below 450
Sellers face quarterly storage caps and increased scrutiny on excess inventory.
Amazon has also adjusted entry requirements for the FBA New Selection Program, lowering the minimum IPI score to 300, allowing newer sellers limited access to incentives while still encouraging disciplined inventory control.
Key Metrics That Affect Your IPI Score
Amazon calculates the IPI score using four primary metrics, updated weekly based on a rolling 90 day window.
Excess Inventory Percentage
Measures how much inventory exceeds Amazon’s recommended 90 day supply. This metric carries the greatest negative weight. Prolonged overstock quickly drives scores down.
FBA Sell Through Rate
Compares units sold to average available inventory. A strong sell through rate significantly improves IPI performance and offsets minor inventory imbalances.
Stranded Inventory Percentage
Tracks inventory that cannot be sold due to listing, pricing or compliance issues. While less impactful than excess inventory, unresolved stranded units steadily erode scores.
In Stock Rate
Reflects how consistently active listings remain available. While this metric does not directly penalize sellers, poor in stock rates limit sales velocity and indirectly harm sell through performance.
Reducing Excess Inventory Before It Impacts Your Score
Excess inventory is the fastest way to lose IPI standing. Proactive monitoring is essential.
Effective practices include:
- Leveraging liquidation or removal options for inventory that no longer aligns with demand
- Reviewing the Inventory Performance Dashboard weekly
- Setting alerts when units approach 75 to 90 days of supply
- Identifying slow moving ASINs early and adjusting reorder quantities
- Using promotions, coupons or price adjustments to accelerate sell through
Well managed sellers typically target 30 to 60 days of coverage, adjusting upward only for predictable seasonal spikes.
Improving Sell Through Rate Consistently
Sell through rate remains the most effective lever for improving IPI scores.
Proven optimization strategies include:
- Strengthening listings with high quality images, clear titles and structured bullet points
- Adding A Plus content to improve conversion rates
- Running targeted Sponsored Products campaigns to increase visibility
- Refining backend search terms to align with actual customer queries
- Actively managing reviews using compliant post purchase follow ups
Improving conversion efficiency often delivers faster IPI gains than inventory reductions alone.
Inventory Planning and Restock Discipline
Effective restocking requires balancing sales velocity, supplier lead times and Amazon capacity limits.
Best practices include:
- Setting minimum and maximum stock levels per ASIN
- Using Amazon restock recommendations as a baseline, not a rule
- Adjusting forecasts for promotions, seasonality and external demand shifts
- Tracking supplier reliability and transit variability
- Maintaining controlled safety stock rather than broad buffers
As Amazon continues tightening storage policies, sellers with predictable restock cycles maintain far more stable IPI performance.
Preparing for Reduced Amazon Prep Services
Amazon has already begun reducing internal prep and labeling services. By 2026, Amazon is expected to fully phase out seller facing prep and labeling inside its fulfillment centers.
Sellers will be required to deliver fully prepped and labeled inventory before inbound shipment. This shift increases reliance on external prep warehouses and 3PL partners capable of handling labeling, inspection, bundling and compliance before inventory reaches Amazon.
Forward planning in 2026 allows sellers to transition smoothly without risking inbound delays or rejected shipments.
Amazon’s 2026 IPI score updates reinforce a clear message: efficient inventory management is no longer optional. Sellers who actively control excess inventory, maintain strong sell through rates and plan restocks with discipline can avoid storage penalties and maintain operational flexibility.
By aligning inventory strategy with Amazon’s evolving standards now, sellers position themselves for stability in 2026 and beyond.
Request a consultation to review your current inventory setup and prepare for upcoming FBA changes.