In the event you’re an FBA vendor, your Stock Efficiency Index (IPI) rating is extra vital than ever in 2025. With Amazon tightening stock restrictions and elevating charges, ignoring your IPI rating can result in pricey penalties like storage limits, increased charges, and blocked shipments—each vendor’s nightmare.
So how does the IPI rating work in 2025? What’s thought of a superb rating? And how will you enhance it to keep away from penalties?
Let’s break it down.
What Is Amazon’s IPI Rating & Why Does It Matter?
Your IPI rating is a quantity between 0 and 1,000 that Amazon assigns to your vendor account to measure how effectively you handle FBA stock.
In case your rating drops too low, Amazon will:
- Restrict your FBA space for storing.
- Cost increased storage charges—particularly for overstocked or aged stock.
- Prohibit new stock shipments, growing the danger of stockouts and misplaced gross sales.
The minimal IPI threshold in 2025 is 400.
Falling under this quantity places your account vulnerable to penalties.
Backside Line: The next IPI rating means extra accessible storage, decrease charges, and fewer restrictions.
How is the IPI Rating Calculated in 2025?
Whereas Amazon doesn’t publish its actual system, your rating relies on 4 key metrics:
- Extra Stock Proportion – What number of of your gadgets are overstocked or not transferring?
- Promote-By means of Price – Are you persistently promoting your stock?
- Stranded Stock Proportion – Do you will have stock caught at success facilities attributable to itemizing errors?
- In-Inventory Price – Are your fashionable, high-demand merchandise persistently accessible?
Amazon updates your IPI rating weekly, so constant enchancment can result in quick beneficial properties.
What’s New for IPI in 2025?
A number of modifications have made IPI administration extra vital this yr:
- Stricter storage limits – Even sellers with an IPI rating above 400 might face limitations if their sell-through charge is low.
- Larger charges for aged stock – Lengthy-term storage of slow-moving merchandise will price greater than ever.
- Extra aggressive restock restrictions – Amazon might restrict inbound shipments based mostly on demand forecasts, even when your IPI is stable.
💡 Translation: Amazon needs sellers to remain lean, transfer stock shortly, and keep away from useless inventory.
The right way to Enhance Your IPI Rating & Keep away from Storage Charges
In case your IPI rating is under 400 (or near it), take these steps to spice up it ASAP:
1. Repair Stranded Stock
Stranded stock hurts your rating and your backside line.
- Go to Vendor Central → Stock → Repair Stranded Stock to resolve any itemizing points and get merchandise promoting once more. You may also go on to the Stranded Stock web page in Amazon Vendor Central to take speedy motion.
2. Improve Your Promote-By means of Price
Amazon rewards sellers who transfer stock effectively. To spice up this metric:
- Run promotions or time-limited reductions to clear stale stock.
- Use Amazon PPC to drive focused site visitors to underperforming listings.
- Think about Multi-Channel Success (MCF) to maneuver stock by platforms like eBay, Walmart, or Shopify.
3. Scale back Extra Stock
Overstocked SKUs can drag down your rating and set off pricey long-term storage charges.
- Use “Handle Stock Well being” in Vendor Central to establish slow-moving gadgets.
- Enroll eligible merchandise in Amazon’s Outlet Program to maneuver stock through offers.
- Take away or liquidate aged stock that isn’t promoting.
Use instruments like Vendor Labs SKU Economics to shortly spot low-velocity SKUs and make data-backed selections.
4. Hold Finest-Sellers in Inventory
Amazon favors sellers who persistently maintain fashionable gadgets accessible.
- Monitor restock reviews to make sure you don’t run out of top-selling SKUs.
- Base reorders on precise demand information, not simply FBA storage limits.
- Keep away from stockouts—they will decrease your IPI quick.
Vendor Labs Restock app might help forecast stock wants based mostly on precise demand traits, serving to you keep away from stockouts and keep IPI-compliant.
Ultimate Ideas: Mastering Your IPI in 2025
IPI administration isn’t nearly avoiding charges—it’s a strategic benefit. Sellers who preserve excessive IPI scores take pleasure in extra storage flexibility, decrease working prices, and improved gross sales velocity.
Right here’s the place you stand:
- IPI Rating 500+ – You’re within the secure zone, however keep proactive.
- IPI Rating 400–500 – Hold optimizing to forestall potential penalties.
- IPI Rating under 400 – Act now to keep away from extreme restrictions and rising charges.
By monitoring your IPI weekly and taking swift motion on stranded, extra, or slow-moving stock, you’ll be able to keep aggressive and worthwhile on Amazon in 2025.
Keep forward of Amazon’s stock guidelines with instruments just like the Restock app and SKU Economics from Vendor Labs—constructed that can assist you forecast demand, keep away from stockouts, and scale back extra stock earlier than it hurts your IPI rating.
Take management of your stock efficiency—begin optimizing at this time.
