Seller Performance; Optimize account health
Transcription
The last widget we will review from the seller central dashboard is the inventory planning widget. You can see here your inventory performance index is shown as a scale from red, which means poor up to bright green, which means excilent. It is based on how well you keep popular products in stock. Maintain healthy inventory levels and fix listing problems falling into the red areas can greatly affect your seller status.
show moreClicking in this widget will take you directly to the inventory performance dashboard. It can also be accessed through the inventory tab on the top, navigation and clicking on the inventory dashboard. The Inventory Performance Dashboard is the hub for optimizing your FBA business. Here, from this page, you can identify opportunities to grow your sales, reduce costs.
Track keep performance metrics. Your IPI score or inventory performance index is based on how well you drive sales by stocking popular products and efficiently managing on hand inventory. An IPI above 550 indicates that your business is excelling. IPI below 450 indicates immediate action should be taken to improve the score.
There are generally four recommendations to help improve your IPI. The first is to reduce excess inventory to increase profitability, carrying too much inventory, decreases profitability due to storage fees, and holding costs. The second is to increase sell through. To balance your inventory week over week, you can add advertising and promotional efforts to drive more traffic to your page and improve keywords that target the right customer and increase conversion rates.
The third is to ensure inventory is available by fixing listings that are stranded. Quite simply, if inventory is not available to sell, it can’t be purchased. And lastly, increase sales by keeping popular items in stock. By keeping your most sought after items in stock, you will maximize the overall number of sales.
The IPI dashboard displays a performance bar for each one of the four categories. Excellent is indicated by a dark green color. Good a light green fair is yellow and poor is red. Here we see that the inventory performance page also provides additional metrics within each factor, which are revealed by selecting show more detail.
Clicking the show, more detailed box associated with each category will take you to related inventory management tools, which provide recommendations to improve your performance. The dashboard also provides visual cues like red, exclamation points or green check marks. These symbols allow you to quickly and easily see where performance metrics.