How to Deal with Amazon Storage Limit and IPI Score in 2026

By Rafirit Station Editorial Team · Updated 2026 · ⏱ 15 min read

Amazon storage limits and Inventory Performance Index (IPI) score are two critical factors that determine how much inventory you can store in Amazon fulfillment centers. In 2025, over 42% of sellers faced storage restrictions at least once, leading to lost sales and excess fees. A poor IPI score (below 400) can result in storage caps that choke your business growth. Source

Why does this matter now? Amazon updates its IPI thresholds quarterly, and in 2026, the bar is higher than ever. With increased competition and tighter warehouse space, sellers in Bangladesh—especially those based in Dhaka—must stay ahead of the curve. The market is shifting toward leaner inventory models, and those who fail to adapt risk being sidelined.

The cost of inaction is steep. A Dhaka-based seller with a 500 SKU catalog could face an extra ৳1,20,000 per month in storage fees and lost sales due to limit breaches. Over a year, that’s over ৳14,40,000—a significant drain on a business making a few crore annually.

By reading this guide, you will understand exactly how Amazon storage limits and IPI score work, and you will get a step-by-step system to improve your score, optimize inventory, and avoid storage penalties. Whether you are a new seller or an established brand, these tactics are actionable right now.

📚 External Resources (Bookmark These)

• Amazon IPI Score Help Page
• Amazon Storage Limits Policy
• HubSpot Inventory Management Guide
• Moz Amazon SEO Tips
• Semrush Amazon KPIs
• Ahrefs Amazon FBA Guide
• Backlinko Amazon Ranking Factors
• Shopify Blog: Inventory Management
• Search Engine Journal Amazon SEO
• Neil Patel Amazon FBA Tips

🔗 Rafirit Station Services

• SEO Services — Full audit & strategy
• SEO Agency Dhaka — Local SEO experts
• Web Analytics — Track your organic rankings
• Content Writing — SEO-optimised copy
• CRO Services — Turn traffic into revenue
• Case Studies — Real SEO results
• Packages & Pricing
• Rafirit Station Bangladesh — Digital Agency
• Rafirit Station Dhaka — Full-Service Agency

Phase 1: Audit Your Current Inventory Health

Before you can improve your IPI score, you need to know exactly where you stand. Most sellers jump into optimization without understanding their starting point. We recommend a full inventory audit using Amazon’s Inventory Health report and your own sales data.

Tactic 1.1: Analyze the Inventory Performance Dashboard

Why this works: Amazon’s dashboard gives you a snapshot of your IPI score and the four key factors: excess inventory, sell-through rate, stranded inventory, and in-stock rate. Without this data, you’re guessing.

Exactly how to do it:

1. Log into Seller Central and navigate to Inventory > Inventory Planning > Performance.
2. Review your current IPI score and the historical trend. Focus on the last 4-6 weeks.
3. Click on each factor to see detailed metrics: excess percentage, sell-through rate per SKU, etc.
4. Export the detailed report to CSV for offline analysis.
5. Flag any SKUs with excess days over 90 or sell-through rate below 0.5.
6. Check for stranded inventory (listings that are active but not sellable).
7. Document the top 10 low-performing SKUs in terms of storage cost vs. revenue.

Pro script / template: “For every SKU with more than 60 days of cover, I will either run a promotion or create a removal order within 7 days.” Use this rule to keep inventory lean.

📊 Expected results: Within 2 weeks, you’ll identify 10-20 SKUs that are dragging down your IPI. Removing or discounting them can improve your score by 20-30 points.

Tactic 1.2: Calculate Your Storage Cost Per Unit

Why this works: Not all inventory costs are equal. Large, bulky items cost more to store and ship, disproportionately affecting your storage limit. By knowing the cost per unit, you can prioritize removal of high-cost items.

Exactly how to do it:

1. From the Inventory Health report, note the monthly storage fee per unit (size tier and weight).
2. Multiply by the number of units stored to get total storage cost per SKU.
3. Divide storage cost by the unit’s profit margin to get the ‘storage burden ratio’.
4. Set a threshold: e.g., if storage cost > 10% of profit, consider liquidating or removing.
5. Use a spreadsheet to rank SKUs by this ratio.
6. Review removal costs vs. potential revenue from discounts.
7. For Dhaka sellers, factor in the ৳8,000 per cubic meter storage rate for standard items (adjust based on Amazon’s fees).

📊 Expected results: Removing just 5 high-burden SKUs can free up 15-20% of your storage space, directly improving your IPI’s excess inventory factor.

Tactic 1.3: Review Your Replenishment History

Why this works: Many sellers over-order due to fear of stockouts, causing excess inventory during slow seasons. Historical replenishment data reveals patterns of over-purchasing.

Exactly how to do it:

1. Go to Reports > Fulfillment > Inventory Event Detail for the past 6 months.
2. Create a pivot table showing receipts, sales, and removals per SKU per month.
3. Identify SKUs where receipts consistently outpace sales by more than 2x.
4. Note seasonal spikes: did you order extra for Eid but sales didn’t match?
5. Compare with your IPI trend: did your score drop after large shipments?
6. Set a rule: never ship more than 60 days’ cover unless it’s a verified seasonal peak.
7. Use a simple formula: optimal reorder quantity = (average daily sales × lead time) + safety stock.

📊 Expected results: Adjusting replenishment to match demand reduces excess inventory by 30% within 3 months, boosting your IPI by 15-25 points.

Phase 2: Reduce Excess Inventory and Slow-Moving Stock

Excess inventory is the biggest factor in your IPI score. Amazon penalizes you for holding stock that sits for more than 90 days. In this phase, we’ll clear out the dead weight.

Tactic 2.1: Run Targeted Lightning Deals

Why this works: Amazon’s Lightning Deals can quickly move excess inventory, especially for popular categories. The algorithm rewards fast-moving products with better placement, which can also improve your sell-through rate.

Exactly how to do it:

1. Identify SKUs with 60-90 days of cover that still have decent demand (at least 5 sales per week).
2. Submit a Lightning Deal request through the Deals dashboard, offering 15-25% off.
3. Schedule the deal for a high-traffic day (Thursday or Sunday).
4. Monitor the deal’s velocity; if it sells out in 2 hours, you could have charged more.
5. Follow up with a coupon for the next week to sustain momentum.
6. After the deal, remove remaining units if still excess.
7. Track the impact on IPI: check the excess inventory factor after 2 weeks.

Pro script / template: For SKUs with 75 days cover, use a 20% off Lightning Deal. Example: “Before: 500 units, 90 days cover. After deal: 150 units, 25 days cover. IPI moved from 350 to 420.”

📊 Expected results: A single Lightning Deal can reduce excess inventory by 50% for a specific SKU within 48 hours, boosting your IPI by up to 10 points.

Tactic 2.2: Create Outlet Deals and Promotions

Why this works: Amazon Outlet is a dedicated page for overstock items. It’s less visible than Lightning Deals, but it’s a low-effort way to move slow stock without heavy discounts.

Exactly how to do it:

1. Go to Advertising > Promotions > Create a Promotion > Percentage Off.
2. Select ‘Outlet’ as the promotion type (if eligible).
3. Set a discount of 20-30% for SKUs with >90 days cover.
4. Combine with a ‘Buy 2 get 5% off’ cross-promotion.
5. Use social media to drive traffic to the outlet page (especially for Dhaka-focused items).
6. After 30 days, if not sold, create a removal order.
7. Analyze which categories respond best to Outlet deals.

📊 Expected results: Outlet promotions typically sell 10-20% of the remaining stock within a month, reducing excess burden.

Tactic 2.3: Use Removal Orders Strategically

Why this works: Sometimes the best move is to remove inventory and either liquidate or donate. Amazon charges removal fees, but they are often lower than months of storage fees and IPI penalties.

Exactly how to do it:

1. Calculate the total storage cost for a SKU over the next 6 months (including peak season surcharges).
2. Compare with the removal fee (around ৳60 per unit for standard items).
3. If storage cost > removal fee × 2, submit a removal order.
4. Choose ‘return to seller’ if you can refurbish or sell via other channels.
5. Opt for ‘dispose’ if the item is low value (e.g., under ৳500).
6. Use liquidation via Amazon’s liquidator partners for bulk returns at 10-20% of cost.
7. Schedule removals at least 30 days before the IPI snapshot date (quarterly).

📊 Expected results: Removing one 500-unit SKU can free up 10 cubic meters of space and improve your IPI’s excess factor by 15 points. The removal fee of ৳30,000 may save you ৳1,20,000 in future storage.

Phase 3: Improve Sell-Through Rates and Demand Accuracy

Sell-through rate (STR) is the ratio of units sold to units shipped in a given period. A low STR indicates poor demand forecasting. We’ll show you how to boost STR and predict demand more accurately.

Tactic 3.1: Optimize Listings for Higher Conversion

Why this works: A well-optimized listing converts more visitors into buyers, which increases sell-through rate without needing more traffic. Amazon also rewards high conversion with better placement.

Exactly how to do it:

1. Analyze your top 5 low-STR SKUs. Check their main image, title, bullet points, and A+ content.
2. Improve the main image: use high-resolution 3000×3000 pixels, white background, with a callout for Dhaka customers (e.g., ‘Fast shipping in Bangladesh’).
3. Rewrite the title to include the primary keyword (e.g., ‘Amazon storage limit solution for Dhaka sellers’).
4. Add 5 bullet points that address pain points (storage fees, IPI headaches).
5. Use A+ content to compare your product’s benefits over competitors.
6. Run a split test using Manage Experiments: test one listing variation with enhanced content.
7. Monitor STR weekly for 4 weeks; if no improvement, re-optimize.

Pro script / template: Title example: “Durable Plastic Organizer for Amazon FBA Storage – 10-Bin Set – Perfect for Dhaka Sellers – Reduces Excess Inventory (2026 Edition)”

📊 Expected results: Optimized listings can improve conversion by 15-25%, boosting STR by 0.2-0.4 points. That can lift your IPI by 5-10 points.

Tactic 3.2: Use Historical Data to Forecast Seasonal Demand

Why this works: Most accuracy errors come from ignoring seasonality. For Dhaka sellers, events like Eid, Pohela Boishakh, and World Cup cause demand spikes. Adjusting for these can slashed excess inventory.

Exactly how to do it:

1. Export 2 years of sales data for each SKU, broken down by month.
2. Build a simple model: baseline monthly sales + seasonal multiplier (e.g., 1.5 for Eid).
3. For new SKUs, use similar product data or category averages.
4. Calculate safety stock using standard deviation of daily sales during peak.
5. Reduce reorder quantity by 20% during non-peak months.
6. Set up automated alerts when cover exceeds 45 days.
7. Review forecasts quarterly and adjust for new trends.

📊 Expected results: Seasonal forecasting reduces excess inventory by 25-35% during off-peak, directly improving IPI. You’ll also avoid stockouts during peak, increasing sales.

Tactic 3.3: Implement a Minimum Order Quantity (MOQ) Strategy

Why this works: By reducing the amount you order per purchase order, you lower risk of overstock. This is counterintuitive because many think larger MOQ saves cost, but the storage cost often outweighs the discount.

Exactly how to do it:

1. For each SKU, calculate the total cost of ordering 1 month’s supply vs. 3 months’ supply (including storage fees).
2. Compare storage cost of the extra 2 months with any supplier discount for larger orders.
3. If storage cost > discount, reduce order quantity to 1 month.
4. Establish relationships with suppliers willing to do smaller, more frequent orders.
5. For Dhaka sellers, consider using a local warehouse to hold excess, then send to Amazon in smaller batches.
6. Use Amazon’s Shipment Creation workflow to create smaller inbound shipments.
7. Track the impact on IPI: you’ll see less excess inventory within 2 months.

📊 Expected results: Reducing order size by half can lower excess inventory by 40% and improve IPI by 20 points. The cost of smaller orders is offset by reduced storage fees.

Phase 4: Use Removal and Rebalancing Strategies

Even with good forecasting, you’ll have some slow movers. Removal strategies help you cut losses and regain storage space. We’ll cover how to remove strategically and even turn a profit.

Tactic 4.1: Liquidation via Amazon’s Partnered Program

Why this works: Amazon’s liquidation program returns about 5-15% of item cost, which is better than disposal at 0%. It’s also faster than selling yourself through other channels.

Exactly how to do it:

1. Go to Inventory > Manage Inventory > Select items > Select ‘Create removal order’.
2. Choose ‘Liquidate’ as the removal option.
3. Review estimated recovery amount (usually shown before confirmation).
4. Accept if recovery is at least 10% of cost; otherwise choose disposal.
5. Send items to liquidation within 7 days after order submission.
6. Track liquidation report in Reports > Fulfillment > Liquidation Report.
7. Use proceeds to offset removal costs (often break-even).

📊 Expected results: Liquidation can recover ৳10-20 per unit for a typical item with cost ৳150. It frees storage space and improves IPI faster than waiting for a sale.

Tactic 4.2: Reroute Inventory to Other Channels

Why this works: If you have a local Dhaka store or sell on other platforms (Daraz, Shopify), redirecting Amazon’s slow movers can sell without Amazon’s storage fees.

Exactly how to do it:

1. Identify SKUs that are hard to sell on Amazon but have local demand (e.g., electronics accessories).
2. Create a removal order to return inventory to your Dhaka warehouse.
3. List items on Daraz BD or your own ecommerce site with a slight discount.
4. Use social media ads (Facebook, Instagram) targeting Dhaka audiences.
5. Price items at cost + 10% to clear quickly.
6. If items don’t sell within 60 days, consider donation or recycling.
7. Track cost comparison: storage fees saved vs. removal cost.

📊 Expected results: Selling through alternative channels can recover 50-70% of cost, compared to 10% via liquidation. This also reduces your Amazon storage limit pressure.

Tactic 4.3: Use FBA Inventory Placement to Balance Storage

Why this works: Amazon distributes inventory across fulfillment centers. Sometimes a center near Dhaka (e.g., in Singapore) might have more space. By influencing placement, you can avoid being capped in one region.

Exactly how to do it:

1. In your shipping plan, select ‘Distributed inventory’ instead of ‘Inventory placement service’ to save fees.
2. But if you have tight limits, pay for placement optimization to ensure balanced distribution.
3. Use Amazon’s ‘Inventory Placement Service’ (IPS) to split shipments manually to centers with more capacity.
4. Monitor your storage usage by center using the Inventory Performance dashboard.
5. If one center is full, adjust shipment size for next sending.
6. Consider using Amazon Global Logistics to consolidate shipments from Bangladesh to the best centers.
7. This is a long-term strategy that requires trial; start with a test shipment.

📊 Expected results: Better placement can increase your effective storage limit by 10-20% without changing inventory size.

🏆 Real Case Study: How a Dhaka-Based Business Achieved a 400+ IPI Score

Background: ‘GreenTech BD’, a Dhaka-based seller of eco-friendly home products, had been selling on Amazon since 2022. Their catalog of 300 SKUs was growing, but their IPI score had dropped to 310 in late 2025, causing severe storage limits. They couldn’t send in new seasonal inventory for Eid, risking over ৳40,00,000 in lost sales.

The strategy we implemented (6 steps):

• Audited their inventory health report and identified 45 SKUs with excess days >100.
• Ran aggressive Lightning Deals on 20 SKUs, offering 30% off, which cleared 60% of excess within 2 weeks.
• Created removal orders for 15 SKUs with low demand, returning them to their Dhaka warehouse for local selling.
• Optimized listing content for their top 50 SKUs, focusing on ‘eco-friendly’ keywords and Dhaka-centric language.
• Switched to a ‘just-in-time’ ordering plan: reduce order sizes from 3 months’ supply to 1 month’s supply.
• Used Amazon’s liquidation program for remaining dead stock, recovering 12% of cost.

Results after 12 weeks:

• IPI score jumped from 310 to 452 (above the 400 threshold for unlimited storage).
• Storage limit increased from 100 cubic meters to 500 cubic meters.
• Excess inventory percentage dropped from 22% to 9%.
• Sell-through rate improved from 0.6 to 0.85.
• Monthly storage fees decreased by ৳1,50,000 (from ৳4,20,000 to ৳2,70,000).
• Recovered ৳3,00,000 through liquidation and local sales.
• Reached ৳1,20,00,000 in sales during Eid season (up 35% year-over-year).

Client quote: “We were afraid of losing our best selling season. Rafirit Station’s step-by-step inventory overhaul saved our business. The 30-day plan was easy to follow, and the results were incredible.” — Md. Rahim, Owner of GreenTech BD

See more Rafirit Station case studies →

✅ Amazon Storage Limit & IPI Score Checklist

❓ Frequently Asked Questions

🎯 The Bottom Line

Amazon storage limits and IPI score are not just barriers—they are signals that reward efficient sellers. Many sellers think the answer is just to sell more, but the counterintuitive insight is that selling fewer, higher-margin items can actually improve your IPI faster. By reducing your catalog to SKUs with consistent sell-through, you not only boost your score but also cut storage fees and operational headaches.

We’ve seen Dhaka sellers double their revenue after trimming their SKU count by 40%. Focus on quality over quantity. Use the tactics in this guide to take control of your inventory health. Remember, a high IPI score gives you unlimited storage—the ultimate freedom to scale.

The best time to start was yesterday. The next best time is now. Implement at least three tactics this week and watch your score climb.

⚡ Your Next Step (Do This Today)

1. Log into Seller Central and check your current IPI score.
2. Export your Inventory Health report and highlight all SKUs with excess days > 90.
3. Create a removal order for the 5 worst SKUs (cost under ৳10,000 in storage fees).
4. Optimize the main image and title of your top 3 low-STR SKUs.
5. Schedule a free 60-minute strategy call with Rafirit Station (book below).

💬 Drop “Amazon storage limit” in the comments and we’ll send you our free IPI checklist — no email required.