Why My Inventory Performance Index Is Important

Inventory Performance IndexA few months ago, a new thing showed up on your Dashboard called the Inventory Performance Index. This index is based on how well you keep popular products in stock, maintain healthy inventory levels, and fix listing problems. The Inventory Performance Index is updated weekly. You can increase your Inventory Performance Index by increasing sales by keeping popular items in stock, reducing excess inventory to increase profitability, and ensuring inventory is buyable by fixing listings that are stranded.

Inventory Performance Index – Excess Inventory Percentage

This part of the index will show your excess units and the estimated total storage cost. There is even a button to reduce your excess inventory which leads you to the Manage Excess Inventory page. The recommendations that you may get for your products are create a sale, advertise a listing or create a removal order.

Inventory Performance Index – FBA In-Stock Rate

This part of the index will show you your out-of-stock SKUs and the estimated FBA lost sales. There is a button Restock today that leads you to the Restock Inventory Page. When I reviewed this report, I did not agree with some of the recommendations. The report is telling me to restock Valentine’s Day products which makes no sense at all.

Inventory Performance Index – Stranded Inventory Percentage

This part of the index will show you your Stranded Inventory. The Fix Listings button will take you to the Fix Stranded Inventory page.

The following email was sent on March 1, 2018:

Starting July 1, 2018, storage limits will be evaluated every three months on a quarterly cycle. If your Inventory Performance Index is less than 350 six weeks before the start of a quarter, you will be notified of your potential storage limits. If your Inventory Performance Index score is still less than 350 at the end of that quarter, those limits will apply for the next quarter.

Under the FBA inventory storage limits policy, you will not be able to create a new shipment to Amazon until your inventory level drops below your storage limits. If your existing inventory exceeds your storage limits for a given month, we will also charge an Inventory Storage Overage Fee on the portion of your inventory that exceeds your storage limits, in addition to monthly inventory storage fees and, if applicable, long-term storage fees. The overage fee will be charged monthly at $10.00 per cubic foot, based on the daily average volume of inventory that exceeded your storage limits throughout the month. We will be updating our tools to reflect cubic feet of storage instead of the number of units that we currently show.

For more information, check out FBA Storage Limit Changes.

Professional Selling Plan Storage Limits

July 1, 2018 and after
Inventory Performance Index
Score less than 350

(6 weeks before the quarter ends AND at the end of the quarter)

Score of 350 or more
Storage limits Updated quarterly Unlimited
Monthly Inventory Storage Overage Fee $10.00 per cubic foot over the storage limit Not applicable

So not only will you be charged Long Term Storage Fees, but you could be prohibited or restricted from sending in inventory if your Inventory Performance Index is too low.

One of the things that is being discussed is if you should delete or end your listings that you no longer intend to sell. There have been questions as to whether this affects your Inventory Performance index. My FBA stock rate is low because I have a lot of listings with no stock. I will start to close some of these and see if this makes a difference.

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