IPI Below 400 in 2026? Get Ready for FBA Storage Limits!

Key Takeaway: For Amazon FBA sellers, the Inventory Performance Index (IPI) isn't just a number. If your IPI score drops below 400 in 2026, you could face FBA storage limits, additional fees, and even rejection of new inventory shipments, all of which can be devastating to your sales. It's crucial to prioritize your inventory management right now.

Why You Need to Know This Now

In 2026, Amazon is further emphasizing the importance of the Inventory Performance Index (IPI) to maximize the efficient use of Fulfillment Center space and maintain healthy inventory levels for sellers. Notably, the minimum IPI threshold was temporarily lowered to 350 (from the previous 400) in Q1 2026. While this demonstrates Amazon's flexible policy changes, it also signals that the threshold could be raised again at any time. A low IPI score can do more than just increase inventory storage costs; it can make operating your business via FBA incredibly difficult. Therefore, understanding the latest policy changes and proactively responding is essential.

3 Key Rules

1. IPI Score and Storage Volume Limits: The IPI score, ranging from 0 to 1,000, is a key indicator of your Amazon FBA inventory management efficiency. Generally, if your score falls below 400, FBA storage volume limits will begin to apply, potentially preventing new inventory shipments. In Q1 2026, a temporary threshold of below 350 could result in up to a 40% reduction in your storage space. 2. Factors Determining Your IPI Score: Your IPI score is primarily determined by these four core factors: Excess Inventory Percentage: Your score will drop if you have too much inventory projected to sell in over 90 days. Sell-Through Rate: This indicates how quickly your inventory sells, calculated by dividing the number of units sold in the last 90 days by the average number of units on hand. Stranded Inventory: Inventory that is not available for sale (e.g., due to listing issues) negatively impacts your score. In-Stock Rate for Replenishable ASINs: It's crucial to maintain sufficient stock of popular products. 3. Aged Inventory Surcharge: Inventory stored in Amazon's fulfillment network for 181 days or more incurs an Aged Inventory Surcharge, in addition to monthly storage fees. This fee is assessed monthly on the 15th, based on an inventory snapshot. Effective January 16, 2026, fees for items stored for 366 days or more have changed, with the minimum fee for items stored 12-15 months increasing from $0.15 to $0.30 per unit.

Consequences of Non-Compliance

A low IPI score or violations of inventory management policies can severely impact a seller's account and sales.

FBA Storage Volume Limits: The most direct impact is a restriction on the amount of inventory you can send to Amazon's warehouses. This can hinder new product launches or securing inventory for peak seasons, leading to lost sales opportunities. Monthly Storage Overage Fees: If you store inventory beyond your allocated storage volume, you'll incur additional overage fees on top of regular storage fees. Restock Caps per ASIN: The quantity of replenishable inventory for specific ASINs (Amazon Standard Identification Numbers) may be limited. Hindered Business Growth: A low IPI score makes it difficult to expand your business through FBA, and inefficient inventory management can lead to reduced profitability.

Practical Checklist (Act Now!)

1. Check Your IPI Dashboard Weekly: In Seller Central, navigate to Inventory → Inventory Performance Dashboard to review your IPI score and its components (excess inventory, sell-through rate, stranded inventory, in-stock rate) on a weekly basis. 2. Immediately Address Excess and Stranded Inventory: Check the Manage Excess Inventory and Fix Stranded Inventory sections of your dashboard. Promptly deal with unnecessary excess inventory through FBA Liquidations or Removal Orders. For stranded inventory, resolve listing issues to make it available for sale. 3. Improve Sell-Through Rate and Optimize Replenishment Plans: For products with low sell-through rates, boost sales through price adjustments, advertising campaigns, or promotions. Additionally, utilize Amazon's inventory recommendation tools to maintain appropriate stock levels, and consider a small-batch replenishment strategy to avoid sending too much inventory at once.

Common Mistakes

Viewing IPI as Just a Reference Metric: Many sellers treat their IPI score merely as a reference, failing to actively manage it. This often leads to sudden storage limits or unexpected fee increases. Remember, IPI is a critical health indicator for your Amazon FBA operations. Unplanned Inventory Replenishment Without Considering Sales Velocity: Sending too much inventory to Amazon's warehouses based on vague hopes of high sales can quickly lead to excess inventory, a rapid drop in your IPI score, and ultimately, aged inventory surcharges.