IPI score dropped below 400 — what actually happens to your account?

General Q&A
1

Dropping below the 400 IPI threshold won’t get your Amazon account suspended, but it immediately triggers severe FBA operational restrictions and penalties.

Here is what actually happens behind the scenes, how it impacts your bottom line, and how to recover.

1. Direct Consequences of Dropping Below 400

:package: Strict Storage Capacity Caps

  • What happens: Amazon enforces a hard limit on your maximum available FBA storage volume (measured in cubic feet) for standard-size, oversized, apparel, or footwear categories.

  • The impact: If your current FBA inventory already exceeds the new limit, your available capacity for new inventory drops to zero.

:prohibited: Blocked Inbound Shipments

  • What happens: Once you reach or exceed your capped storage limit, Seller Central will block you from creating new shipping plans.

  • The impact: You cannot send fresh stock to Amazon fulfillment centers until you free up space by selling through existing inventory or removing units.

:money_with_wings: Monthly Storage Overage Fees

  • What happens: if your inventory level is above your assigned storage limit on any day during the month, Amazon assesses an Inventory Overage Fee — typically some amount per cubic foot per month, on top of your standard monthly storage fees. It’s checked daily, not just at month-end, so even a brief spike above your limit can trigger it.

  • The impact: Slow-moving inventory starts eating your profit margins twice as fast.

:cyclone: The “IPI Downward Spiral”

This is the trap that catches most sellers:

  1. Storage is capped, blocking inbound shipments.

  2. Fast-selling ASINs run out of stock.

  3. Only slow-moving excess stock remains in FBA.

  4. Your overall sell-through rate tanks, driving your IPI score even lower for the next evaluation cycle.

2. Evaluation Timing: When Limits Kick In

Amazon evaluates IPI scores continuously, but storage limits are enforced based on quarterly evaluation checkpoints:

IPI Score Account Status Storage Status
0 – 399 Below Threshold Storage limits applied & inbound capped
400 – 499 Passing / Warning No limits, but high vulnerability
500 – 1000 Healthy / Elite Full storage allocation & peak season buffer

Warning for Q4 / Peak Season: If your score is below 400 during a quarterly check prior to Q4, the storage restrictions will lock you out during the holiday rush—causing thousands in lost sales.

3. Fast-Track Action Plan to Recover Above 400

If your score is under 400, tackle these levers in order of impact speed:

  1. Fix Stranded Inventory (Same-Week Impact): Go to Inventory > Manage Inventory > Stranded Inventory. Fix listing errors or issue removal orders immediately. Stranded units count against your inventory metrics without contributing any sales velocity.

  2. Liquidate or Remove Dead SKUs: Run aggressive discounts (15–30% off), create Outlet Deals, or file Removal/Disposal Orders for non-moving stock over 90 days old. The removal fee is significantly cheaper than storage overage fees and long-term storage surcharges.

  3. Flag Non-Replenishable ASINs: Mark discontinued items as “non-replenishable” in your inventory planning tool so stockouts on dead items don’t harm your in-stock rate.

  4. Maintain 30–45 Days of Supply (DOI): Shift to smaller, more frequent restocks rather than sending 90+ days of inventory at once.