Updated March 21, 2024

The ABC Analysis Dashboard offers an approach for categorising inventory items into three groups, grounded on their value and sales frequency.

The ABC Analysis supports analyses over 28-day and 90-day periods, enhancing both short-term responsiveness and long-term strategic planning for eCommerce inventory management: 

• Short-term insights enable quick inventory adjustments based on real-time sales data and emerging trends. It helps merchants to optimise marketing campaigns and discounts. 
• Long-term planning aids in identifying trends and seasonality, supporting strategic decisions on inventory levels and cash flow.

A-class:

• Representing top-selling products, they account for approximately 80% of your revenue.
• These products typically have a more accurate sales forecast.
• Frequent reorders are necessitated, often on a daily or weekly basis.
• They are prioritised to prevent stock-outs, ensuring continuous availability.

B-class:

• Products in this category contribute to around 15% of your revenue and may occasionally shift to A or C class.
• They aren't as critical as A-class items but are more significant than C-class products.
• Their performance is consistently monitored to identify potential shifts to A or C class.

C-class:

• These items contribute to about 5% of total revenue.
• They are produced and reordered less frequently, usually in response to an actual purchase.
• Ideally, C-class items should stock-out after each purchase since they are low demand and pose a higher inventory cost risk due to potential overstock.

ABC Inventory Analysis can streamline inventory and improve profitability.

ABC Analysis Dashboard Elements

KPI

• A Class Variants: Count of product variants per A class, derived from an analysis of the  selected period.
• B Class Variants: Count of product variants per B class, derived from an analysis of the  selected period.
• C Class Variants: Count of product variants per C class, derived from an analysis of the  selected period.
• Total Variants: Total number of distinct product variants in classes. Source: Shopify
• A Class Total Sales: Total sales of current A-class variants from orders placed in web store(s) or point of sale locations. The percentage tells how much the total sales of the same variants have increased over the selected period. Source: Shopify
• B Class Total Sales: Total sales of current B-class variants from orders placed in web store(s) or point of sale locations. The percentage tells how much the all-time total sales of the same variants have increased over the selected period. Source: Shopify
• C Class Total Sales: All-time total sales of current A-class variants from orders placed in web store(s) or point of sale locations. The percentage tells how much the all-time total sales of the same variants have increased over the  selected period. Source: Shopify

ABC Inventory Analysis

Analysis of products purchased in pos and web. The table contains the first 100 results, but the full data can be downloaded separately. Source: Shopify