How to Use Amazon’s Inventory Dashboard to Avoid Stockouts and Lost Sales

Smart inventory management is one of the most overlooked opportunities on Amazon. The Inventory Dashboard in Seller Central gives you real-time insights to help manage stock levels, reduce fees, and improve profitability. Yet many sellers underutilize these tools.

In this guide, we’ll show you how to navigate each key component of the dashboard-from your IPI score to restock recommendations-and use them together to avoid stockouts, minimize storage costs, and grow your Amazon business.

What Is the Inventory Dashboard?

The Inventory Dashboard is part of Amazon’s inventory management suite for FBA sellers. It provides a comprehensive view of your inventory performance and alerts you to issues that could hurt your sales or profitability. The core sections include:

• Inventory Performance Index (IPI)
• Restock Inventory
• Manage Excess Inventory
• Aged Inventory

Each of these sections provide specific metrics and recommendations to help you manage your Amazon FBA Inventory.

1. Inventory Performance Index (IPI)

Your IPI score is Amazon’s main measure of how well you manage your inventory. It ranges from 0 to 1,000. Staying above the threshold (typically 400) is key to maintaining storage flexibility and avoiding fees.

How to Interpret Your IPI Score

Amazon factors in:

• Sell-through rate
• Stranded inventory
• Excess inventory levels
• In-stock rate of popular products

Understanding IPI Thresholds and Storage Limits

Amazon typically evaluates your IPI score at the end of Q2 and Q3 to determine your storage eligibility for Q3 and Q4, respectively.

Here’s a breakdown of what the score range generally means:

• IPI 450–1,000: Excellent. Unlimited storage with preferred restocking flexibility.
• IPI 400–449: Acceptable but at risk. Monitor closely because performance issues could lower it and lead to restrictions.
• IPI 350–399: Warning zone. Likely to face FBA storage limits and overage fees.
• IPI below 350: High risk. Immediate action required to avoid penalties and reduced inventory capacity.

Consequences of a low IPI score:

• Storage volume limits: Amazon may cap the total cubic feet of storage you can use.
• Overage fees: Exceeding your limit could result in fees up to $10 per cubic foot or more.
• Q4 risk: Limited restock capability during peak sales seasons.

To improve your IPI:

• Remove or liquidate excess inventory
• Increase sell through and inventory turn over
• Resolve stranded listings promptly
• Keep top sellers in stock to maintain a high in-stock rate

Example:

A seller had an IPI score of 450 going into Q4. By reviewing their excess inventory and shifting SKUs into liquidation three months early, they avoided $1,200 in long-term storage fees and stayed eligible for unlimited storage through the holiday season.

2. Restock Inventory: Stay In Stock, Sell More

Amazon’s Restock Inventory tool tells you when and how much to replenish, based on past sales velocity and your configured lead times. Keeping your top sellers in stock is essential for maintaining organic rankings and maximizing sales.

How to use it:

• Navigate to Inventory > Inventory Planning and click Restock Inventory.
• Customize your lead times and days of supply for accurate ship-by date recommendations.
• Download weekly restock reports and align with your supplier timelines.
• Prioritize fast-selling or seasonal SKUs for immediate restock.

Pro Tip: Sync this data with your inventory planning spreadsheet or software for better forecasting and reorder triggers.

3. Manage Excess Inventory: Cut Costs and Improve IPI

Excess inventory weighs down your IPI score and inflates your storage costs. The Manage Excess Inventory tab flags items that are overstocked or slow-moving.

How to address excess inventory:

• Review flagged SKUs and reduce prices or run coupons to increase sell-through.
• Use Amazon’s liquidation program for dead stock.
• Set alerts or use inventory tools to flag SKUs with too much stock based on current sales velocity. This helps prevent over-ordering slow-moving items and protects your IPI score.

4. Aged Inventory: Avoid Long-Term Storage Fees

Amazon charges long-term storage fees for any unit stored longer than 365 days. The Aged Inventory view shows exactly which SKUs are at risk and how much you’ll pay if they’re not sold or removed.

To avoid aged inventory fees:

• Create removal orders or mark items for disposal before they reach 365 days in storage.
• Review product listings with slow sell-through: check for negative reviews, weak main images, and opportunities to improve the listings.
• Compare your pricing, features, and images to competitors to make sure your offer is competitive in the market.
• Use advertising to boost visibility and increase sales velocity.
• Use FBA’s Inventory Age report to identify at-risk SKUs early, then plan promotions like Amazon coupons and deals/promotions to accelerate sell-through.

Conclusion: Take Control of Inventory to Drive Profit and Growth

Amazon’s Inventory Dashboard is more than just a performance report. It’s a decision-making system. When used strategically, it helps you:

• Stay in stock without overstocking
• Avoid costly storage penalties
• Maintain strong IPI scores for maximum flexibility

Use each tool-IPI, restock alerts, excess inventory, and aged inventory-in tandem. Together, they create a full picture of how to manage inventory smarter, reduce waste, and boost your margins across every ASIN.