The time for the Black Friday promotion is coming, what should I do if the seller's inventory is insufficient?
Amazon measures inventory management through the Inventory Performance Indicator ( IPI). The Amazon Inventory Performance Indicator (IPI) is a benchmark Amazon uses to identify and penalize sellers with slow inventory turnover. If the seller's IPI is too low, Amazon will impose storage restrictions, and in severe cases, overpayment will be required.
From the factors that affect the Inventory Performance Indicator Algorithm ( IPI) score, sellers should improve their Inventory Performance Score as follows;
Avoid redundant and out-of-age inventory. Sellers are advised to maintain sufficient inventory to meet expected sales within 30 to 60 days . Reducing the number of redundant items directly improves a seller 's inventory performance metrics . There is a product setting on the management redundant product page in the seller's background , which can help Amazon determine whether the seller 's product is a redundant product by setting the "purchase cost"/"capital cost"/"recovery rate" of the product.
Maintain a properly balanced inventory level for 90 consecutive days and increase the 90 -day sell-through rate. ( 90 days is three months, which is equivalent to the new product period. The seller can use the Amazon platform to support the traffic of the new product and improve the product conversion rate.) It is recommended that the seller organize the listing regularly , which can be maintained once a week. For example, through advertising, discounts and other means to organize inventory to avoid slow sales.
Repair the product information of "Amazon Inventory with No Selling Information" to ensure that the inventory is available for sale. Inventory that is unavailable to buyers due to issues with product information can result in lower sales and storage costs.
Increase sales by ensuring best-selling items are "in stock". Because when the inventory is fully sold, the seller 's IPI score is immediately affected. Therefore, it is necessary to ensure that there is at least one inventory in the warehouse, especially Amazon recommended products.
If sellers want to expand their storage capacity, they need to increase their inventory performance indicator scores in order to achieve 400 points in two assessments each quarter to ensure that they have unlimited inventory in the next quarter.