The majority of FBA sellers will get a higher IPI score
Amazon is making it slightly easier for sellers who use its FBA fulfillment service by easing standards for the Inventory Performance Index (IPI)
Amazon announced: “As of January 20, 2020, your Inventory Performance Index (IPI) score considers both your recent and long-term inventory performance. Your IPI is now based on the time duration that results in a higher score.” (The higher the better for sellers.)
The company explained that the majority of FBA sellers would see a higher IPI score or no change at all:
“Previously, your IPI score was based only on recent inventory performance. The calculation change benefits sellers with lower sales volume in their off-peak season as well as sellers taking action to improve their inventory performance.”
This move comes after Amazon imposed stricter storage limits on sellers in January, changing the IPI threshold for storage limits to 400 (previously 350), reports EcommerceBytes.
One frustration sellers have cited about the metric is that Amazon does not disclose the formula it uses to calculate their IPI, only explaining in general terms: “We calculate IPI for you based on how well you maintain inventory levels, fix listing problems that make your inventory unavailable for purchase, and keep popular products in stock.”
More Amazon news
Amazon is testing a new system to tackle patent infringements
A cheaper alternative to patent lawsuits The program will match a seller claiming infringement and the accused merchant with a neutral, third-party lawyer. According to engadget.com, the company is testing a program to help fight utility patent...
Amazon AI automatically fires low productivity workers
Amazon workers are supervised by AI If the system determines the employee is failing to meet production targets, it can automatically issue warnings and terminate contracts without a supervisor's intervention Documents obtained by The Verge show how...
Amazon will have “multibillion-dollar failures”
Size of failures at Amazon will be bigger along with growth Jeff Bezos warns that Amazon will “occasionally have multibillion-dollar failures” in his annual letter to shareholders Jeff Bezos in his annual letter to shareholders said that Amazon will be...
