How to Review Amazon FBA Inventory Aging and IPI Score

TL;DR

Identifying and addressing excess FBA inventory through pricing adjustments, removal orders, and strategic decisions.

Transcript

you've got too much inventory at amazon but what do you do to solve the problem or how to even decide how big of a problem is it that 365 day marks coming up you might be paying extra fees if you keep your inventory at fba my name is stephen pope and i'm the founder of my amazon guy so first things first you should go into your inventory dashboard ... Read More

Key Insights

• 💯 Regularly monitor your Inventory Performance Index (IPI) score to maintain healthy inventory levels.
• 🥳 Identify stagnant inventory over 90 days to avoid additional storage fees.
• 🪈 Utilize pricing adjustments and removal orders to manage excess inventory effectively.
• ↩️ Consider liquidation, returns, or disposal for removing excess inventory.
• 🇨🇷 Enable donations for unsellable items to reduce inventory costs.
• 🥳 Stay informed about automatic removal of aged inventory after 180 days on Amazon.
• 🥳 Plan a recurring 90-day review of excess inventory for proactive management.

Questions & Answers

Q: What is the Inventory Performance Index (IPI) score, and why is it crucial for managing inventory on Amazon?

The IPI score indicates your inventory health, impacting storage limits and fees. Maintaining a high score is essential to avoid restrictions and optimize storage efficiency.

Q: How can sellers identify excess inventory on Amazon FBA, and what actions should be taken?

Sellers can check their inventory dashboard for items sitting over 90 days with no sales. Lowering prices, creating removal orders, or donating excess inventory are effective solutions.

Q: What are the options for removing excess inventory on Amazon FBA, and how do they impact costs?

Sellers can choose liquidation, return to address, or disposal methods for removing inventory, with associated costs varying based on the chosen option and item size.

Q: Why is it essential to regularly review and manage excess inventory on Amazon FBA?

Regular reviews help prevent storage fees, maintain storage limits, and enhance overall inventory performance, ensuring efficient operations and cost-effective management.

Summary & Key Takeaways

• Monitor your Inventory Performance Index (IPI) score to manage excess inventory effectively.

• Identify stagnant inventory over 90 days and take immediate action to prevent extra fees.

• Lower prices, create removal orders, or donate to reduce excess inventory and avoid additional charges.