Improving Amazon Inventory Performance Index Explained by Inventory Management Expert on Lunch With Norm Blog


Amazon sellers interested in improving their Amazon Inventory Performance Index can find expert advice from Chelsea Cohen on the “Lunch With Norm” Amazon FBA blog.

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Fort Lauderdale, FL, Jun 22, 2021 /prREACH/ -- Amazon seller, speaker and copywriting expert Chelsea Cohen recently shared her advice on how a business can improve its Amazon Inventory Performance Index (IPI) on the e-commerce blog “Lunch With Norm.” Cohen is the co-founder of, the first fully customizable, fully understandable inventory management software for Amazon sellers.

To read the full Amazon Inventory Management blog post, visit

Amazon IPI has been rolled out as a way for Amazon to measure how well sellers are managing their inventory. The score is calculated as a number between 0-1000. In May 2020, Amazon increased the minimum threshold from 350 to 400 and then again, in July 2020, Amazon increased it to 500. A score over 500 means a brand is excelling at inventory management, and a number below 500 can leave sellers with inventory restrictions by Amazon.

Although the exact formula used to calculate IPI is unknown, Cohen says stranded inventory, excess inventory sell-through and in-stock inventory are top factors that can influence a seller’s score.

With these factors in mind, Cohen suggests four ways to increase an Amazon IPI score:

  1. Manage stranded inventory by relisting a product, making the listing live, and un-stranding inventory. Alternatively, a seller can remove or dispose of the stranded inventory from their account.
  2. Eliminate excess inventory. A brand can create a sale or drop the price to move the inventory quickly, dispose of the stock, or return stock to a warehouse.
  3. Boost sell-through rate by increasing advertising efforts and working on listings. Offering Lightning Deals or coupons can be used to encourage customers to make a purchase.
  4. Make sure to always stay in stock. Set a buffer stock system within Amazon FBA and any outside warehouses to act as a safety net against stock-outs by taking action well before running out.

“Currently, Amazon requires its sellers to be more proactive with taking care of their IPI score, with the main goal of managing their inventory successfully,” Cohen explains. “How you operated your business in the past likely won’t cut it anymore. It’s time to make the long-postponed upgrade to your logistics systems and work on improving your IPI.”

For those interested in learning more about Amazon FBA, tune into industry expert Norman Farrar’s “Lunch with Norm” podcasts

About Norman Farrar

Entrepreneur and businessman Norman "The Beard Guy" Farrar stands at the forefront of the economic mega-machine known as Amazon Marketplace. As a leading expert with over 25 years of product sourcing, development, and branding expertise, Norm is an advisor to many and an inspiration to all.

Throughout his career, he has worked with big brands including Mercedes-Benz, Coca-Cola, Dell, Microsoft, Target, Hershey, 20th Century Fox, Molson's, Cadbury and a wide variety of emerging businesses that are celebrating sudden escalation in profitability and sales as a result of taking action on his advice and proven methods. | | | | | | |

About Chelsea Cohen

Chelsea Cohen is an Amazon seller, speaker & copywriting expert. To solve her own inventory management problems, faced with disappointing options, Chelsea teamed up with Dan Fernandez of to build out After 2 years testing tons of inventory software and crowd-sourcing the best spreadsheets and systems from top seven-and-eight-figure sellers, SoStocked’s forecasting algorithm evolved into something completely unique on the market: the first fully customizable, fully understandable inventory management software for Amazon sellers. Chelsea is also well-known for her unique perspective on Amazon listing copy on, seeing some students and clients achieve increases of over 20% conversions using her techniques. She has been featured on AM/PM Podcast, Seller Stories with Jungle Scout, and the Amazing Summit stage. |


Contact Info

Lunch With Norm

The Beard Guy

Norman Farrar

701 N Andrews Ave

Fort Lauderdale, FL

United States


1 (888) 300-1001

[email protected]

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Lunch With Norm is your resource for everything from Amazon, to e-commerce, to digital marketing, to social media, all in the form of a live stream podcast. We aim to arm the small business owner with the latest tools and advice from the experts making waves in the online space. Tune in to our Facebook page each week to have your questions answered live and on air.
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