ABC analysis
Classify SKUs by revenue contribution (Pareto A/B/C), then review inventory value by grade for the selected period.
ABC analysis groups SKUs by how much they contribute to revenue over a period—the classic Pareto idea: a small share of products often drives most of the sales. Inventory Mate grades each SKU so you can prioritize A movers, watch B items, and scrutinize C or slow stock.
Where to find it: Dashboard → Reports → ABC analysis (/dashboard/reports/abc). Select a shop first.
How grades are assigned
Revenue is measured per SKU / variant over the period you choose (see below), using order line revenue aggregated from your store (cancelled orders are excluded). SKUs are sorted by revenue descending, then processed in order:
| Grade | Meaning (cumulative share of total revenue in the period) |
|---|---|
| A | SKUs that bring the cumulative total up to the first 80% of revenue |
| B | SKUs in the next 15% (cumulative 80% → 95%) |
| C | Remaining SKUs with sales (95% → 100% of revenue) |
| U | No revenue in the period (unsold / inactive in that window) |
Grades use revenue, not units sold or margin. A is the first 80% of revenue, B is the next 15% (up to 95%), and C is the rest.
Period (days)
Use the Period (days) control to set the sales window:
- 30, 60, 90, 180, or 365 days. The period has to stay between 30 and 365 days.
The report reloads when you change the period. All revenue and grade assignments use that window only.
What you see in the UI
High level (summary)
For each grade:
- Products with grade — % of your SKUs (variant rows) that fall in that grade:
SKUs in grade ÷ total SKUs × 100. This is a count mix, not the 80% revenue Pareto line (that rule is how grades are assigned, not what this column shows). - Items — number of SKUs in the grade (same as the numerator of the % above).
- Retail value — total on-hand retail value for those SKUs (unit price × on-hand stock, summed).
- Cost value — total on-hand cost value (unit cost × on-hand stock, summed).
Use this summary to see how many SKUs sit in each bucket and where inventory dollars are concentrated by grade.
SKU level
A detailed table lists each SKU with:
- Grade (A, B, C, U)
- Identity: product, variant, SKU
- Revenue in the selected period and revenue per day (
period revenue ÷ period days) - Stock, retail value, cost value
- ELT — estimated lead time (days), averaged from per-location product settings when available
- Est. — estimated days of stock remaining (median across locations from suggested restock when available)
- Dep. — lead-time demand (units), summed across locations from suggested restock data
Column headers include tooltips—hover the dotted labels for short definitions.
How to use ABC in practice
- Protect A SKUs — ensure stock and replenishment for top revenue contributors (Suggested Restock, AI Forecasting).
- Review C and U — candidates for promotions, bundle strategies, or discontinuation; high cost value on C may tie up cash.
- Compare periods — run 90 days for routine reviews; 365 for seasonal businesses to avoid misclassifying slow seasons.
Limitations and notes
- Revenue only — grades do not incorporate margin or profit; they answer “who drives sales dollars,” not “who drives profit.”
- Historical period — grades reflect past sales in the window; they don’t predict future importance by themselves.
- Multi-location — the report is for the shop you have selected, the same as your other reports.
Related
- SKU analysis — per-SKU demand forecast, stock zones, and supply planning
- SKU COGS — unit cost vs purchase-order average
- Cash Flow Planner — cash timing around inventory and purchasing