What is the IPI score, and why does it cap your storage?
Amazon grades how well you manage inventory, and the grade decides how much space you get.
The Inventory Performance Index is Amazon’s score for how efficiently you use its warehouse space. It rewards healthy sell-through and consistent availability, and punishes excess inventory that sits without selling and stranded inventory that sits without an active listing.
The score has teeth. Fall below Amazon’s threshold and your storage capacity is limited, which caps how much you can send in, which caps how much you can sell. It is a rare metric that punishes both overstocking and understocking at the same time.
Keeping it healthy is mostly hygiene: forecast honestly, clear slow stock with removal orders or promotions before it ages, and fix stranded listings the week they strand rather than the quarter after.
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Talk to the team that runs this every day for healthcare brands.