Will demand forecasting help my Amazon IPI score?

Yes, demand forecasting will help you achieve a healthy Amazon IPI score. Amazon IPI scores range between 0-1000, and they’re used to measure inventory health (i.e., assessing low and excessive inventory levels for your SKUs). Because demand forecasting facilitates more effective inventory optimization and reduces holding costs, optimal forecasting capabilities empower ecommerce businesses to maintain healthy inventory levels.

If you need more incentive to care about your IPI score, consider that if your FBA business doesn’t reach a particular quarterly IPI score, Amazon can reduce your storage capacities and increase your fees for the next quarter. It’s in the best interest of your business (and your wallet) to invest in demand forecasting.