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Most sellers fixate on surface-level metrics—sales velocity, restock alerts, Buy Box wins. But after working with dozens of high-performing brands, we’ve learned that real profitability comes from the numbers most sellers overlook. What separates reactive sellers from top-tier operators is their attention to the metrics that drive margin, cash flow, and sustainable growth.

As our Inventory Specialist puts it: “People obsess over sales velocity and restock limits—but it’s the quiet metrics behind the scenes that often tell us whether we’re scaling profitably or bleeding money.”

Here are the three often-ignored metrics we monitor constantly for our clients—because we’ve seen firsthand the difference they make.

1. Unfulfillable Inventory: The Profit You’re Probably Missing

This is inventory you’ve already paid for—but can’t sell. Amazon splits inventory into two categories: fulfillable & unfulfillable.

Fulfillable is sellable inventory in any status (available, inbound, etc.)

Unfulfillable is inventory marked as unsellable for various reasons, including: 

  • Expired
  • Defective
  • Customer damaged (returns in poor condition)
  • Warehouse damaged (damaged by Amazon warehouse employees)


Why It Matters

Unfulfillable units can gradually accumulate and erode your profit margins. If you’re not reviewing them regularly, you’re losing money on inventory you’ve already invested in. 

What To Do

  • Audit your unfulfillable inventory regularly.

  • Identify SKUs with unusually high unsellable units.

  • Open a case with Seller Support if something doesn’t look right and ask for documented proof of damage or expiration.

  • Request inventory reinstatement if Amazon is at fault.


We’ve recovered hundreds of units—and thousands in revenue—for clients just by keeping this on a weekly checklist.

2. Storage Capacity Limits: What’s Controlling Your FBA Shelf Space

After your first 39 weeks on Amazon—when storage is essentially unlimited—you’ll be subject to storage capacity limits. These limits dictate how much inventory you’re allowed to send into FBA each month, and they can significantly impact your ability to stay in stock and scale effectively.


Two key factors determine your monthly capacity:

→ Inventory Performance Index (IPI)

Amazon’s IPI score measures how efficiently you manage your FBA inventory. The higher your score, the more storage you’re granted. The core drivers of your IPI include:

  • Out-of-stock rates

  • Aged or excess inventory

  • Restocking practices

  • Sales velocity

  • Listing quality

→ Sales Performance

Sales velocity also plays a major role. Amazon prioritizes storage for sellers who move inventory efficiently. If your catalog stagnates, you’re less likely to be granted additional space—even if you’re willing to pay for it through the bidding system.


Why It Matters

A low IPI or poor sales performance leads to reduced storage limits, disrupting your supply chain and slowing sales. When that happens, you face two options: cut back on inbound inventory, potentially missing sales opportunities, or bid for additional space through Amazon’s Capacity Manager—if it’s even available.


How It Works

  1. At the end of each month, Amazon assigns your storage limit based on IPI & sales data.
     
  2. If it’s not enough, you can request more by specifying the cubic feet needed and your bid per cubic foot.

  3. Amazon awards space based on demand and bid strength.

  4. You’ll only be charged if you're granted and use the space—and not until the end of the reservation period.


The upside? If that added space drives sales, you earn performance credits ($0.15 for every $1 sold), which can offset up to 100% of your fee. With strong performance, the extra storage can end up being free.

3. Storage Utilization Ratio

This is the ratio of: Average daily inventory volume stored ÷ Average daily shipped volume

Amazon monitors this to determine whether you’re sitting on inventory. If you’re storing significantly more than you’re shipping, expect storage utilization surcharges on top of your regular monthly storage fees.

Why It Matters

Inventory that lingers in Amazon’s fulfillment centers can quietly erode your margins—well before it’s officially labeled as “excess” or “aged.” The longer it remains unsold, the more you incur storage fees and damage your inventory performance.

What To Do

  • Monitor monthly.

  • Target a ratio that keeps inventory turn within 22 weeks of coverage.

  • Liquidate stale SKUs or accelerate sales with ads.


Operate Like an Insider

At AmpliSell, we don’t treat inventory management as backend busywork—we treat it as a growth driver. Unfulfillable inventory, storage capacity limits, and the storage utilization ratio aren’t just metrics; they’re strategic levers. When managed proactively, they unlock more FBA space, reduce unnecessary fees, and protect your margins.

If you're only responding to restock alerts, you're not managing inventory—you're falling behind it. Start tracking these often-overlooked metrics consistently. Make them part of your weekly workflow. That’s how top brands stay in stock, stay efficient, and stay ahead of whatever Amazon throws their way.

Want to tighten up your inventory strategy? Let’s connect.

About the Author

3 Metrics That Drive Profitable Inventory Management on Amazon

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