ABC Inventory Analysis Calculator
Which lines deserve the attention.
Class A SKUs
80
20.0% of SKUs, 80.0% of value
Class C is 50.0% of your catalogue carrying 5.0% of the value. Give it simple rules and infrequent counts — managing it closely costs more than it protects.
How the ABC Inventory Analysis Calculator works
ABC analysis applies the Pareto principle to stock: a small proportion of lines usually accounts for most of the value. Those get tight control and frequent counts; the long tail gets simple rules and infrequent attention. Treating every SKU equally wastes effort on items that do not matter.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How does ABC classification work?
Rank items by annual consumption value — unit cost × annual usage — then take the cumulative share. The top ~80% of value is class A, the next ~15% is B, and the final ~5% is C. Class A is typically only 10-20% of your SKUs.
What do I do differently for each class?
Class A gets tight forecasting, frequent cycle counts and close supplier management. Class B gets standard controls. Class C gets simple reorder rules, larger safety buffers and infrequent counts, because the cost of managing them closely exceeds the value at risk.
How often should I redo the analysis?
Annually, or after a significant catalogue change. Items migrate between classes as demand shifts, and a classification more than a year old usually misdirects effort toward products that used to matter.
What is XYZ analysis?
A complementary classification by demand variability rather than value — X is steady, Z is erratic. Combined with ABC it produces nine categories, which is genuinely useful: a high-value item with erratic demand needs very different handling from a high-value steady one.