“Starting January 1, 2020, Amazon US will raise the IPI compliance value of the storage limit to 400 (previously 350). Abbottt, Premiere Creative’s creative director.

Sellers may have recently been notified of changes in Amazon's logistics storage limit policy: Starting January 1, 2020, Amazon US will raise the IPI compliance value of the storage limit to 400 (previously 350). So, starting from January 1, 2020, the IPI score will be raised. What is the specific time point for the assessment?What impact will it have on everyone's preparations for the fourth quarter peak season?Below, Xiaobian will explain it to you one by one.

From January 1, 2020, the IPI compliance value will be raised from 350 points to 400 points before unlimited storage can be stored for one quarter.

Limited storage capacity
Excess storage charge (existing storage capacity - storage capacity granted) *Monthly excess storage fee of $10 per cubic foot

Unlimited storage for the next quarter and remains the same for one quarter without excess storage fees

Whether you will have unlimited storage in the first quarter of 2020, the time point for the assessment is your IPI score for the fourth quarter of 2019.

Of the two assessments in the fourth quarter of 2019, as long as one of them reaches 400 points or more, the storage capacity for the first quarter of 2020 is unlimited. In other words: if your IPI score falls below 400 in the week of November 11, 2019, the system will notify you of potential storage limits for the 1st quarter of 2020. You'll then have 6 weeks to improve your IPI score. If your IPI score is still below 400 for the week of December 23, 2019, we will implement storage limits on you in the first quarter of 2020. Sellers who maintain an IPI score of 400 or above will be able to store unlimited standard-sized and oversized items (monthly storage fees and long-term storage fees are still required).

There are 4 main influencing factors in the composition of IPI: excess inventory percentage, Amazon Logistics sales rate, percentage of Amazon inventory not on sale, and Amazon Logistics's inventory rate influence (for specific definitions, see: Urgent!The checkpoint is here. If you want unlimited use of FBA storage during the peak season, how can your inventory performance reach 350?).

You can track your IPI score in Seller Central's “Inventory Performance Dashboard” and take the steps provided on the page to optimize inventory health.

1) Reduce excess inventory:

The percentage of excess inventory is an assessment of the surplus inventory situation over the past 90 days. Too much inventory can drag down your profits. Take the actions provided on the Manage Excess Inventory page to reduce storage fees and storage costs.

2) Increase sales rate:

Sales volume is an assessment of inventory sold in the past 90 days. It requires a balance between your product volume and sales volume. Avoid inventory aging and becoming redundant. Take the steps provided on the Inventory Age page to increase Fulfilment by Amazon (FBA) sales rates for products with low traffic and low conversion rates.

3) Fix product information:

The percentage of slow inventory without active sales information is an assessment of inventory that cannot be sold due to problems with the front desk page information/listing. Product information issues need to be fixed to make the product available for sale. Make sure your inventory is in a purchasable condition by taking the steps provided on the Amazon Inventory page with no active sales information.
The best way to improve your IPI score and minimize Amazon Logistics storage costs is to reduce excess or slow-selling inventory, maintain inventory turnover at lean levels, and ensure sufficient FBA inventory to minimize lost sales. You can also improve your IPI score by running promotions, creating removal orders, advertising products, improving search keywords, and optimizing product information.
Big sales throughout the year were staged in the fourth quarter. Black Friday, online shopping Monday, Christmas sales, etc., even spread the phrase “Eat enough in Q4, don't be hungry all year long” among Amazon sellers. Everyone should make full use of these promotions to increase the product sales rate and reduce the excess inventory ratio.
Sellers with an IPI score above 350 can get free removal service for a limited time!To provide a good start in improving inventory conditions, Amazon will waive removal fees for all removal orders submitted between October 14 and October 31, 2019 for inventory in Amazon fulfillment centers in the US for sellers who have reached an Inventory Performance Index (IPI) score of 350 or above at any time in October. For more information, please refer to the relevant information on the Amazon US Seller Central Help page.

Action: Log in to Amazon's US Seller Central, go to Inventory Storage, and select “Create Removal Order” in the menu next to any FBA item in your inventory.

1. Sellers with an IPI score below 350 are not eligible to participate in this promotion

2. To take advantage of this offer, you must submit a removal order before the promotion ends

3. You will no longer be able to send items with any ASINs you removed during the promotion until: