ABC Analysis for Inventory – Focus on What Sells

ABC analysis groups your inventory by contribution to sales. Focus effort where it matters most.

Part of our inventory management guide.

The Classes

• A items: ~20% of SKUs, ~80% of sales value. Fast movers, high impact.
• B items: ~30% of SKUs, ~15% of sales. Moderate.
• C items: ~50% of SKUs, ~5% of sales. Slow movers, many SKUs.

Why It Helps

• A items: Track closely, never stock out, optimize reorder
• B items: Standard tracking
• C items: Less frequent counts, consider dropping slowest

How to Do It

1. List all items with annual sales value
2. Sort by sales value (highest first)
3. Calculate cumulative % of total sales
4. Mark: 0–80% = A, 80–95% = B, 95–100% = C

For Kirana Stores

Even a simple split helps. Know your top 20–30 items—ensure they’re always in stock. Don’t over-invest in slow movers.

Stockkeeper helps track sales by item so you can run ABC analysis. Join the waitlist.