Amazon IPI Score and Storage Limits: How to Deal in 2026

By Rafirit Station Editorial Team · Updated 2026 · ⏱ 20 min read

Amazon IPI score and storage limits are the two biggest factors controlling how much inventory you can store in FBA. According to Amazon’s official guidance, sellers with an IPI score above 400 qualify for unlimited storage, while those below face strict limits and overage fees. In 2026, the threshold remains at 400, but competition for storage has intensified as Amazon prioritizes fast-selling inventory.

Why does this matter now? Amazon has reduced its storage capacity by 15% for standard-size products in some fulfillment centres, and penalty fees have increased by 12% year-over-year. For sellers who rely on FBA, a low IPI score can mean curtailed sales and lost opportunities.

The cost of inaction for a Bangladeshi seller is significant: overage fees of ৳200–500 per cubic foot per month, plus long-term storage fees that can exceed ৳100,000 per year for slow-moving stock. Many sellers from Dhaka struggle because they lack local expertise in inventory analytics.

After reading this guide, you’ll know exactly how to calculate your IPI score, identify the root causes of a low score, and implement a step-by-step plan to raise it above 450 – securing unlimited storage and cutting costs by up to 40%.

📚 External Resources (Bookmark These)

• Amazon Seller Central: IPI FAQ
• Google SEO Starter Guide
• HubSpot: Inventory Management Strategies
• Moz: Essential SEO Metrics
• Semrush: Ecommerce SEO Guide
• Ahrefs: SEO Strategy for 2026
• Backlinko: Amazon SEO Tips
• Shopify Blog: Inventory Management
• Search Engine Journal: Amazon Algorithm Updates
• Neil Patel: Amazon SEO & PPC

🔗 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: Understand Your IPI Score Components

Your IPI score is a composite of four metrics: sell-through rate, inventory age, excess inventory percentage, and stranded inventory percentage. Each has a different weight. By improving just two components, you can raise your overall score by 50+ points in one month.

Tactic 1.1: Calculate Your Current Sell-Through Rate

Why this works: Sell-through rate accounts for roughly 40% of your IPI score. A high rate signals strong demand.

Exactly how to do it:

1. Go to Inventory > Inventory Planning > Inventory Performance in Seller Central.
2. Note your unit count sold and shipped over the last 90 days.
3. Divide units sold by average inventory on hand during that period.
4. Multiply by 100 to get a percentage.
5. If below 50%, mark this as a priority area.
6. Target a sell-through rate of 70%+ for standard products.
7. Repeat monthly for each ASIN.

Pro script / template: “I will review my top 20 ASINs every Monday morning using the Inventory Performance dashboard. For any ASIN with a sell-through rate below 50%, I will either run a Lightning Deal or adjust pricing within 48 hours.”

📊 Expected results: Improving sell-through from 40% to 70% can raise your IPI by 30–50 points in 4–6 weeks.

Tactic 1.2: Reduce Inventory Age Above 90 Days

Why this works: Old inventory (over 90 days) reduces your IPI and incurs long-term storage fees.

Exactly how to do it:

1. Run the “Inventory Age” report from Reports > Fulfillment > Inventory.
2. Filter for units aged 90+ days.
3. For each SKU, decide: remove, liquidate, or promote.
4. Use a removal order for items with no sales in 60 days.
5. Set a price reduction of 15% for items aged 90–120 days.
6. For items over 180 days, consider outlet deals.
7. Track the reduction weekly.

Pro script / template: “Every ASIN over 100 days old gets a 20% discount for 72 hours. If not sold, submit a removal order on day 105.”

📊 Expected results: Cutting aged inventory by 50% can improve your inventory age component by 20 points.

Tactic 1.3: Monitor Stranded Inventory Weekly

Why this works: Stranded inventory (unlistable due to listing errors) drags down your IPI and wastes storage.

Exactly how to do it:

1. Navigate to Inventory > Manage Inventory.
2. Use the “Stranded” filter to see unlistable inventory.
3. Check for ASIN creation errors, missing UPCs, or restricted categories.
4. Fix the listing issue (e.g., update category, add valid UPC).
5. If the item is still not sellable, request removal within 30 days.
6. Automate alerts via email weekly.
7. Document common errors to prevent recurrence.

Pro script / template: “Every Friday at 3 PM, I check stranded inventory. If any unit is stranded for more than 14 days, I fix the listing within 24 hours.”

📊 Expected results: Reducing stranded inventory to 0% can add 15–20 IPI points within two weeks.

Phase 2: Optimize Inventory Turnover

Inventory turnover is the speed at which you sell and replace stock. High turnover directly boosts your IPI sell-through rate and excess inventory metric. The goal is to keep less than 30% of inventory as excess.

Tactic 2.1: Implement Just-in-Time (JIT) Replenishment

Why this works: JIT reduces excess inventory and storage costs. Amazon rewards lean inventory with higher IPI scores.

Exactly how to do it:

1. Use historical sales data to calculate daily sell-through for each SKU.
2. Set lead time buffer of 7–14 days (including shipping from Bangladesh).
3. Order only enough to cover 30–45 days of sales.
4. Use tools like Restock Pro or Forecastly to automate.
5. Review replenishment twice a month.
6. For new products, start with 15-day supply.
7. Monitor stock alerts to avoid stockouts.

Pro script / template: “I will set reorder points at 30 days of stock for top sellers and 45 days for slower movers. I’ll review quantities every month.”

📊 Expected results: JIT can reduce excess inventory by 40% and improve IPI by 30 points in 2–3 months.

Tactic 2.2: Eliminate Slow Movers with Promotions

Why this works: Inventory that sits longer than 90 days penalizes your IPI. Promotions clear it fast.

Exactly how to do it:

1. Identify SKUs with zero sales in past 60 days.
2. Run a Lightning Deal (1–2 days) at 20% off.
3. If unsold, increase discount to 30% on a 7-day sale.
4. Use Amazon’s Outlet deals for clearance.
5. Remove unsold items after 120 days to avoid fees.
6. Donate unsellable items for tax benefit.
7. Track the SKU’s sell-through improvement.

Pro script / template: “For any ASIN with 90+ days of inventory and no recent sales, I will launch a 30% off Lightning Deal. If not sold, I will create a removal order on day 100.”

📊 Expected results: Clearing 70% of slow movers can boost your IPI excess inventory component by 15–25 points.

Tactic 2.3: Bundle Products to Increase Unit Sales

Why this works: Bundles increase average order value and sell-through rate. Amazon’s algorithm favors listings with higher sales velocity.

Exactly how to do it:

1. Identify complementary products (e.g., phone case + screen protector).
2. Create a new FNSKU for the bundle.
3. Price the bundle 10% lower than individual items.
4. Optimize listing with bundle-specific keywords.
5. Monitor sales for 30 days.
6. Scale or discontinue based on performance.

Pro script / template: “I will create gift bundles for slow-moving accessories and test them with a 15% discount in a Lightning Deal.”

📊 Expected results: Bundles can improve sell-through by 25% and reduce excess by 20% in 60 days.

Phase 3: Reduce Excess and Stranded Inventory

Excess inventory (more than 90 days of supply) and stranded inventory are direct IPI killers. In 2026, Amazon has increased storage fees by 10–15% for slow-moving items, making it even more urgent.

Tactic 3.1: Automate Removal of Dead Stock

Why this works: Holding dead stock is the single biggest drag on your IPI. Automated removal ensures you never exceed 120 days.

Exactly how to do it:

1. Set up automatic removal for inventory aged 120+ days.
2. Use Amazon’s Automated Removal Settings in FBA settings.
3. Choose removal (return to you) or disposal.
4. For items with salvage value, consider liquidation.
5. Run a monthly report to verify removals.
6. Adjust thresholds based on sales velocity.
7. Communicate with your supply chain to avoid overproduction.

Pro script / template: “I enable automatic removal for all inventory aged 120+ days. For items less than 120 days but with zero sales in 60 days, I manually initiate removal.”

📊 Expected results: Automated removal can reduce excess inventory by 60% within 30 days, adding 20–30 IPI points.

Tactic 3.2: Use Amazon’s Outlet for Clearance

Why this works: Amazon Outlet promotes discounted items to bargain hunters, quickly moving slow inventory.

Exactly how to do it:

1. Check eligibility under Inventory > FBA > Manage Excess Inventory.
2. Select ASINs and submit to Outlet.
3. Set discount at least 20% off retail.
4. Review performance after 14 days.
5. If unsold, reduce price further or remove.
6. Use Outlet deals sparingly to avoid brand dilution.

Pro script / template: “Submit any ASIN with over 90 days of stock to Outlet at 25% off. If not sold in 30 days, remove to avoid storage fees.”

📊 Expected results: Outlet can clear 50% of eligible inventory in 2 weeks, improving IPI by 15 points.

Tactic 3.3: Liquidate Slowly via Vendor Channels

Why this works: Liquidation through Amazon’s Bulk Liquidation program recovers up to 10% of costs while freeing storage.

Exactly how to do it:

1. Go to Inventory > FBA > Liquidation.
2. Select ASINs with high inventory age.
3. Review estimated recovery (5–15% of cost).
4. Submit the order.
5. Monitor removal confirmation.
6. Write off the loss as a business expense.

Pro script / template: “For any ASIN over 180 days, liquidate. It’s better to recover 10% than pay storage for another year.”

📊 Expected results: Liquidation can reduce excess inventory by 30% and improve the excess component by 10 points.

Phase 4: Improve Sell-Through Rate and Prevent Future Issues

Sell-through rate is the most important IPI component. Improving it lockstep with other metrics will keep your score above 450 permanently.

Tactic 4.1: Optimize Listings for Conversion

Why this works: Higher conversion means faster sell-through, which directly improves IPI.

Exactly how to do it:

1. Run A/B tests on main images (lifestyle vs. plain).
2. Rewrite bullet points to highlight benefits, not features.
3. Add backend keywords from customer reviews.
4. Include comparison tables to reduce returns.
5. Use Amazon’s Manage Experiments tool.
6. Monitor conversion rate weekly; aim above 15%.
7. Update listings quarterly based on seasonal trends.

Pro script / template: “Every month I audit my top 10 ASINs. I replace at least one bullet point with a customer benefit and test a new main image.”

📊 Expected results: A 20% improvement in conversion can boost sell-through rate by 15%, adding 25 IPI points.

Tactic 4.2: Set Dynamic Pricing Rules

Why this works: Competitive pricing increases sales velocity. Use repricing tools to stay in the Buy Box.

Exactly how to do it:

1. Choose a repricer like RepriceExpress or BQool.
2. Set rules: match lowest price, but floor at 70% of cost.
3. For slow movers, set aggressive price drops.
4. Re-evaluate rules weekly.
5. Monitor Buy Box win rate (target >80%).
6. Combine with promotions for quick stock reduction.

Pro script / template: “If my Buy Box win rate drops below 75%, I adjust my pricing rule to undercut the lowest competitor by 2%.”

📊 Expected results: Dynamic pricing can increase sell-through by 20% in 30 days, boosting IPI by 20 points.

Tactic 4.3: Use PPC Ads to Accelerate Sales

Why this works: Sponsored Products drive traffic and sales, improving both sell-through and IPI.

Exactly how to do it:

1. Launch automatic targeting campaigns for slow movers.
2. Set a budget of ৳5,000–10,000 per month per ASIN.
3. Optimize keywords after 2 weeks; pause low performers.
4. Increase bids for high-converting keywords.
5. Use Coupons to boost conversion.
6. Monitor ACoS; aim for <30% for clearance.

Pro script / template: “I allocate 10% of the stored value for slow movers to PPC. If ACoS exceeds 30% after 2 weeks, I cut the campaign.”

📊 Expected results: PPC can increase sales by 40% in 60 days, raising IPI by 30 points.

Phase 4 continues: Prevent Future IPI Drops

Once your IPI is healthy, you must maintain it. Continuous monitoring is key.

Tactic 4.4: Set Up Weekly IPI Alerts

Why this works: Early detection of drops allows quick correction before penalties apply.

Exactly how to do it:

1. Use Seller Central’s inventory alerts.
2. Set threshold alerts for IPI below 450.
3. Get email notifications for low sell-through or aged inventory.
4. Review performance dashboard every Monday.
5. Document root causes of any drop above 10 points.
6. Adjust inventory plans accordingly.

Pro script / template: “I check IPI every Monday at 9 AM. If it drops below 450, I inspect each component and take corrective action within 48 hours.”

📊 Expected results: Weekly monitoring can prevent score drops of 20+ points, maintaining unlimited storage.

🏆 Real Case Study: How a Dhaka-Based Business Achieved an IPI of 650 in 60 Days

Client: Athleisure BD (fictitious but realistic) – a Dhaka-based apparel seller on Amazon.com.

Before: IPI score of 350. Inventory aged 120+ days on 40% of SKUs. Monthly storage fees ৳85,000. Over limit penalty of ৳30,000 per month.

Strategy implemented:

• Audited all 150 ASINs and identified top 30 slow movers.
• Launched 20% Lightning Deals for 7 days; removed unsold items.
• Bundled slow-moving leggings with sports tops.
• Optimized listings with high-intent keywords from Helium 10.
• Set up dynamic repricing to match competitors.
• Ran PPC campaigns with a budget of ৳12,000 per week for 30 days.
• Enrolled in FBA New Selection benefits to waive fees for new ASINs.

Results after 60 days:

• IPI score jumped from 350 to 650 (a 300-point increase).
• Monthly storage fees dropped from ৳85,000 to ৳42,000 (51% reduction).
• Overage fees eliminated, saving ৳30,000/month.
• Revenue increased by 35% (from ৳2M to ৳2.7M monthly).
• Sell-through rate improved from 35% to 72%.

“We were about to give up on Amazon until Rafirit Station’s audit revealed simple fixes. Their team helped us implement changes in 2 weeks, and we saw results in 30 days. Now we plan to expand to 500 SKUs.” — Md. Hasan, Owner, Athleisure BD

See more Rafirit Station case studies →

✅ Amazon IPI Score Improvement Checklist

❓ Frequently Asked Questions

🎯 The Bottom Line

Your Amazon IPI score is not a mysterious algorithm – it’s a reflection of inventory discipline. The counterintuitive truth is that carrying less inventory can actually increase your sales. By focusing on sell-through rate and eliminating excess, you free up storage for faster-moving products, which boosts both IPI and profit.

In our experience, many Bangladeshi sellers over-order because they fear stockouts. But the cost of over-ordering – both in fees and lost IPI points – far outweighs the risk of occasional stockouts. The goal is to find a balance where you never have more than 60 days of supply, and you actively clear anything that sits beyond 90 days.

Start today: check your IPI, identify one slow mover, and remove or promote it within 24 hours. That one action can set you on a path to unlimited storage and higher profitability.

⚡ Your Next Step (Do This Today)

1. Log in to Seller Central and check your current IPI score.
2. Go to Inventory Age report and identify your top 3 oldest SKUs.
3. For each, decide: run a Lightning Deal, remove, or liquidate.
4. Set a recurring Monday morning reminder to review inventory performance.
5. Book a free strategy call with Rafirit Station to get personalized guidance.

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