Amazon is shaking up its Inventory Performance Index rules for 2025, introducing new thresholds and fee structures that affect FBA sellers. These updates focus on encouraging a well-managed inventory and a strong sell-through rate to unlock better storage options.

Latest IPI Score Thresholds for FBA Sellers 2025

The Amazon Inventory Performance Index (IPI) threshold sits at 450 for 2025, and dropping below this mark means you'll face storage restrictions and higher fees. If you dip under 350, you're looking at extra storage fees of $10 per cubic foot on those excess units.

Getting your IPI score above 550 puts you in the sweet spot, unlocking unlimited storage space for both standard and oversized items while keeping those storage fees low. Sellers hanging between 450-550 get standard storage privileges, but drop below 450 and you'll run into quarterly storage limits and increased fees. When scores fall under 350, you'll face the toughest restrictions, including major cuts to storage capacity.

The FBA New Selection program has changed its rules, dropping the minimum IPI score to 300 for getting in. This makes life easier for newer sellers who want those program perks, like free storage and return processing.

Key Metrics That Shape Your IPI Performance Score

Your IPI score rides on four key factors: excess inventory percentage (anything over 90 days of supply), FBA sell-through rate (comparing sold units to available inventory), stranded inventory percentage (items you can't sell), and in-stock rate (keeping products available). These numbers directly impact your overall score and storage privileges, with Amazon refreshing these metrics weekly based on a 90-day performance window.

In the grand scheme of things, Amazon weighs excess inventory and sell-through rates more heavily than other factors when calculating your score. Having too much excess inventory can really drag down your score more than other issues, while nailing your sell-through rate can give it a nice boost. Your in-stock rate won't hurt your score but shows where you might be missing out on sales opportunities. Stranded inventory might not hit as hard, but it still needs your attention to keep that score healthy.

Smart Solutions for Reducing Excess FBA Inventory

Keep your finger on the pulse of inventory levels through the Inventory Performance Dashboard, which flags items creeping toward that 90-day supply mark. Running weekly reports helps catch slow movers before they become excess baggage. Setting up automatic alerts when products hit specific age thresholds can save you from inventory headaches.

Flash sales and lightning deals can help move aging inventory fast. Don't forget about Amazon's liquidation programs as a last resort to clear stubborn stock while getting some money back.

Smart seasonal planning makes all the difference, aiming for 30-60 days of stock during regular periods and adjusting for peak seasons. Monthly tracking of inventory turnover rates, shooting for 8-10 turns yearly for most products, keeps things moving. Base those reorder quantities on real sales velocity instead of just forecasts.

Proven Methods to Boost Your Sell-Through Rate

Your sell-through rate comes from dividing units sold in 90 days by average available inventory. This rolling calculation updates weekly, showing you exactly how well your inventory moves.

Getting those sponsored product campaigns running can boost visibility and sales velocity. Make those product listings shine with top-notch images and descriptions that turn browsers into buyers. Adding A+ content showcases your products' benefits in ways that connect with customers.

Zero in on high-converting search terms that match your product category. Get those backend search terms matching what customers actually type in.

Building up authentic reviews through post-purchase emails makes a difference. Using Amazon's review request button at the right time helps boost those numbers. Keeping tabs on review rates helps you fine-tune your follow-up strategy for better results.

Stock Management Techniques for Higher IPI Scores

Set those minimum and maximum stock levels for each ASIN based on sales history and lead time. Use Amazon's restock suggestions as your starting point, but factor in seasonal changes and supplier limits. Daily sales velocity tracking helps catch trends early and adjust buffer stock as needed.

Match your restock quantities to Amazon's monthly storage capacity limits and your current IPI score. Remember to consider both past sales data and upcoming promotions when planning those restocks.

Put Amazon's sales forecasting tools to work on predicting demand spikes and adjusting inventory levels. Tracking supplier lead times and reliability helps maintain optimal stock without excess. Build safety stock calculations that account for both demand changes and supply chain hiccups.

Conclusion

These fresh IPI rules offer sellers a chance to adjust their inventory strategies and steer clear of hefty storage fees. Making smart tweaks now can lead to smoother operations and stronger performance throughout the year.