Fulfillment Lexicon

ABC Analysis

ABC Analysis is sorting SKUs into classes by their share of sales: A items are the few that drive most revenue, C items are the many that drive little.

Topic: Inventory Planning Entry INV-002

Why it matters for ecommerce brands

Used to set different safety stock, cycle count frequency, and slotting rules for each class.

Common questions

What are typical ABC analysis cutoffs?
A common split puts the SKUs driving about 80% of sales or value in class A, the next 15% in B, and the last 5% in C. The exact cutoffs are a choice, so pick ones that create useful groups for your catalog.

Cite this entry

"ABC Analysis." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/abc-analysis/

More in Inventory Planning