Two more sites have launched inventory performance indicators, and storage capacity will be limited if the indicators are not met!

According to official news from Amazon, starting from September 1, 2021, the Australian and UAE sites will officially begin to implement inventory storage restrictions, and the inventory performance index score thresholds for the storage limit quotas will be set at 550 and 450 respectively.

That is to say, on the Australian site, if the seller's IPI score exceeds 550, they can get unlimited storage capacity; however, once the score is lower than this number, the seller's storage capacity will be restricted. As for the specific restriction, sellers can go to the backend shipment page to check.

In the UAE, if the seller's score is higher than 450, the seller can expand the capacity as appropriate; if it is lower than this value, the seller's storage capacity will also be restricted. However, unlike the Australian site, the standard goods will not be less than 500 pieces, and the large goods will not be less than 300 pieces.

In addition, there are a few points to note.

IPI scores are only available to sellers who participate in the Professional Selling Program, have inventory in Amazon's fulfillment centers, and have recent account activity. If you are a new seller or have not been active in the past 13 weeks, there may be no score in your backend. However, these sellers do not have to worry about not having storage capacity, as Amazon still gives them a certain share.

According to the situation of other sites, if sellers with limited storage capacity choose to ship beyond the limit, they will either be cancelled by Amazon or charged high storage fees. If sellers want to get more storage capacity, it is better to honestly improve the IPI score.

It is reported that storage restrictions are evaluated every quarter (every three months). The IPI score is calculated based on factors such as the seller's sales volume and inventory status. Therefore, in order to increase the IPI score, sellers need to increase product sales, such as improving the Listing details page, using in-site promotion tools to accelerate conversions or in-site advertising for traffic diversion, etc. In addition, sellers can also improve inventory utilization by handling redundant inventory.

Three years ago, on the first day of Amazon Australia’s launch , 52% of sellers sold products from China . Today, the site’s sales have exceeded $1 billion .

Similarly, Amazon entered the Middle East in 2017 and has now opened sites in the UAE, Saudi Arabia and Egypt. Some analysts say that the light industry in the Middle East is underdeveloped and extremely dependent on imports. E-commerce in the Middle East is developing very fast and has huge room for growth. It is expected that the annual growth rate of e-commerce will reach 30% from 2015 to 2020. Chinese products are also very popular in the local market. Sellers may wish to pay attention to the Middle East market.

Amazon

Inventory Performance Indicators

Australia

United Arab Emirates