ABC Inventory Analyzer
Paste your SKUs and annual revenue. Get instant Pareto-style classification: A (top 80%), B (next 15%), C (bottom 5%).
Quick Answer
Sort SKUs by revenue descending. Top 80% cumulative = A class. Next 15% = B. Bottom 5% = C. Focus inventory effort on A items.
Paste SKU Data
Format: SKU, Revenue (one per line). Comma or tab separated.
| SKU | Revenue | % of Total | Cumulative | Class |
|---|---|---|---|---|
| SKU-001 | $45,000 | 27.3% | 27.3% | A |
| SKU-002 | $38,000 | 23.0% | 50.3% | A |
| SKU-003 | $22,000 | 13.3% | 63.7% | A |
| SKU-004 | $18,000 | 10.9% | 74.6% | A |
| SKU-005 | $12,000 | 7.3% | 81.9% | B |
| SKU-006 | $9,000 | 5.5% | 87.3% | B |
| SKU-007 | $7,500 | 4.5% | 91.9% | B |
| SKU-008 | $5,000 | 3.0% | 94.9% | B |
| SKU-009 | $3,500 | 2.1% | 97.0% | C |
| SKU-010 | $2,200 | 1.3% | 98.4% | C |
| SKU-011 | $1,800 | 1.1% | 99.5% | C |
| SKU-012 | $900 | 0.5% | 100.0% | C |
Total revenue: $164,900 across 12 SKUs
About This Tool
The ABC Inventory Analyzer applies the Pareto principle (80/20 rule) to SKU portfolios. Most ecommerce stores find that 20% of their SKUs drive 80% of revenue — and the bottom 50% of SKUs drive less than 5%. ABC classification is the foundation of every modern inventory management system because it tells you where to focus effort, capital, and supplier attention.
Why ABC Matters More Than Ever in Ecommerce
With Shopify and Amazon making it easy to launch SKUs, most stores accumulate hundreds or thousands of products without managing the long tail. The bottom 50% of SKUs typically tie up working capital, occupy warehouse space, and add fulfillment complexity for almost no revenue contribution. ABC analysis surfaces these underperformers and frees you to either kill them, raise prices to reset margin, or move them to drop-ship/print-on-demand to eliminate inventory carrying cost.
Managing Class A Items
A items are your business. They warrant tight tracking — weekly cycle counts, conservative reorder points with extra safety stock, multiple supplier relationships for critical SKUs. Run forecast accuracy reports on every A item monthly. Negotiate volume contracts with primary suppliers and identify backup suppliers for the top 5-10 SKUs. Stockout on an A item is materially worse than stockout on a C item.
Managing Class C Items
C items are the long tail. They generate small revenue individually but consume disproportionate operational overhead — purchase orders, shelf space, cycle counts, fulfillment touches. Many businesses simplify C items aggressively: standardize order quantities (90 days at a time), accept higher stockout risk, consolidate to one or two suppliers, or move to drop-ship arrangements. Some kill the bottom 10-20% of C items entirely each year as part of SKU rationalization.
Beyond Revenue: Multi-Criteria ABC
Pure revenue ABC sometimes misses operational risk. A low-revenue but mission-critical replacement part for an installed base might warrant A-level attention despite its small revenue contribution. Multi-criteria ABC weights revenue, margin, lead time, criticality, and supplier risk. Most small businesses do not need this complexity — pure revenue ABC plus exception flagging for critical items is sufficient.
Related Tools
See also our safety stock calculator, reorder point calculator, days of inventory calculator, AOV calculator, and dropshipping margin calculator.