Amazon IPI Score 2025: Avoid FBA Storage Fees and Restock Limits

If you’re an FBA seller, your Inventory Performance Index (IPI) score is more important than ever in 2025. With Amazon tightening inventory restrictions and raising fees, ignoring your IPI score can lead to costly consequences like storage limits, higher fees, and blocked shipments—every seller’s nightmare.

So how does the IPI score work in 2025? What’s considered a good score? And how can you improve it to avoid penalties?

Let’s break it down.

What Is Amazon’s IPI Score & Why Does It Matter?

Your IPI score is a number between 0 and 1,000 that Amazon assigns to your seller account to measure how efficiently you manage FBA inventory.

If your score drops too low, Amazon will:

• Limit your FBA storage space.
• Charge higher storage fees—especially for overstocked or aged inventory.
• Restrict new inventory shipments, increasing the risk of stockouts and lost sales.

The minimum IPI threshold in 2025 is 400.
Falling below this number puts your account at risk of penalties.

Bottom Line: A higher IPI score means more available storage, lower fees, and fewer restrictions.

How is the IPI Score Calculated in 2025?

While Amazon doesn’t publish its exact formula, your score is based on four key metrics:

1. Excess Inventory Percentage – How many of your items are overstocked or not moving?
2. Sell-Through Rate – Are you consistently selling your inventory?
3. Stranded Inventory Percentage – Do you have inventory stuck at fulfillment centers due to listing errors?
4. In-Stock Rate – Are your popular, high-demand products consistently available?

Amazon updates your IPI score weekly, so consistent improvement can lead to fast gains.

What’s New for IPI in 2025?

Several changes have made IPI management more critical this year:

• Stricter storage limits – Even sellers with an IPI score above 400 may face limitations if their sell-through rate is low.
• Higher fees for aged inventory – Long-term storage of slow-moving products will cost more than ever.
• More aggressive restock restrictions – Amazon may limit inbound shipments based on demand forecasts, even if your IPI is solid.

Translation: Amazon wants sellers to stay lean, move inventory quickly, and avoid dead stock.

How to Improve Your IPI Score & Avoid Storage Fees

If your IPI score is below 400 (or close to it), take these steps to boost it ASAP:

1. Fix Stranded Inventory

Stranded inventory hurts your score and your bottom line.

• Go to Seller Central → Inventory → Fix Stranded Inventory to resolve any listing issues and get products selling again. You can also go directly to the Stranded Inventory page in Amazon Seller Central to take immediate action.

2. Increase Your Sell-Through Rate

Amazon rewards sellers who move inventory efficiently. To boost this metric:

• Run promotions or time-limited discounts to clear stale inventory.
• Use Amazon PPC to drive targeted traffic to underperforming listings.
• Consider Multi-Channel Fulfillment (MCF) to move inventory through platforms like eBay, Walmart, or Shopify.

3. Reduce Excess Inventory

Overstocked SKUs can drag down your score and trigger costly long-term storage fees.

• Use “Manage Inventory Health” in Seller Central to identify slow-moving items.
• Enroll eligible products in Amazon’s Outlet Program to move inventory via deals.
• Remove or liquidate aged inventory that isn’t selling.

4. Keep Best-Sellers in Stock

Amazon favors sellers who consistently keep popular items available.

• Monitor restock reports to ensure you don’t run out of top-selling SKUs.
• Base reorders on actual demand data, not just FBA storage limits.
• Avoid stockouts—they can lower your IPI fast.

Final Thoughts: Mastering Your IPI in 2025

IPI management isn’t just about avoiding fees—it’s a strategic advantage. Sellers who maintain high IPI scores enjoy more storage flexibility, lower operating costs, and improved sales velocity.

Here’s where you stand:

• IPI Score 500+ – You’re in the safe zone, but stay proactive.
• IPI Score 400–500 – Keep optimizing to prevent potential penalties.
• IPI Score below 400 – Act now to avoid severe restrictions and rising fees.

By tracking your IPI weekly and taking swift action on stranded, excess, or slow-moving inventory, you can stay competitive and profitable on Amazon in 2025.

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