The biggest risk for third-party Amazon.com sellers in the fourth quarter is likely to be inventory storage limits. Amazon’s Inventory Performance Index (IPI), which measures things like sell-through rate and age of inventory to determine what it costs Amazon to warehouse your inventory, is the primary factor the company uses to calculate sellers’ inventory storage…
Brian Burt
Amazon.com represents a complicated relationship for many consumer brands. The e-commerce giant, which has grown to be the largest online retailer in the world, leverages its vast scale to collect data, optimize revenue, and refine operations — while luring third-party sellers with access to the world’s most important online marketplace. Big brands in particular have…
