ABC Inventory Analysis Calculator for Ecommerce Stores

Enter Inventory Data

Use the settings area first, then enter item-level demand and cost details below.

Analysis Title

Currency Symbol

Display Decimals

Class A Upper Limit (%)

Class B Upper Limit (%)

Notes

SKU	Product Name	Annual Demand	Unit Cost	On Hand	Lead Time (Days)	Remove

Example Data Table

This sample shows the kind of data structure needed for a useful ABC ranking.

SKU	Product Name	Annual Demand	Unit Cost	Annual Consumption Value
ELEC-1001	Wireless Earbuds	4200	$18.50	$77,700.00
ELEC-1003	Bluetooth Speaker	1600	$42.00	$67,200.00
ELEC-1006	Power Bank	2100	$16.75	$35,175.00
ELEC-1002	Phone Case	9000	$3.20	$28,800.00
ELEC-1004	USB-C Cable	7200	$2.80	$20,160.00

Formula Used

Annual Consumption Value

Annual Consumption Value = Annual Demand × Unit Cost

Contribution Percentage

Contribution % = (Item Annual Value ÷ Total Annual Value) × 100

Cumulative Percentage

Cumulative % = Running total of each item’s contribution percentage after sorting values from highest to lowest.

ABC inventory analysis ranks items by annual consumption value. Items near the top consume the largest share of inventory spend and receive the strongest controls. With default thresholds, Class A covers the highest-value items up to 80% cumulative value, Class B extends to 95%, and Class C captures the remainder.

How to Use This Calculator

Enter an analysis title, currency symbol, decimal preference, and your A/B breakpoints.
Add each SKU with product name, annual demand, and unit cost.
Optionally enter on-hand quantity and lead time for stock coverage insights.
Click Analyze Inventory to generate the ranked ABC results.
Review the summary cards, table, and Pareto chart to focus tighter controls on the most valuable items.
Use the CSV and PDF buttons to save or share the analysis output.

Frequently Asked Questions

1) What is ABC inventory analysis?

ABC inventory analysis ranks products by annual consumption value. It helps separate critical, high-value items from moderate and low-value items for better purchasing, counting, and replenishment focus.

2) Why is annual consumption value important?

It combines demand and unit cost into one control metric. A product with strong demand or high cost can absorb a large share of spend, so it deserves closer planning attention.

3) What do A, B, and C classes usually mean?

Class A usually covers the few items driving most inventory value. Class B covers the middle range. Class C includes many low-value items that often need simpler control rules.

4) Can I change the class thresholds?

Yes. The calculator lets you set the A and B cumulative percentage limits. Many teams use 80% and 95%, but other cutoffs may fit your assortment better.

5) Should I use sales price instead of unit cost?

For classic ABC inventory control, purchase or inventory cost is more common. Sales price can distort operational prioritization if it does not reflect the true inventory investment.

6) How often should I run ABC analysis?

Many ecommerce teams review ABC classes monthly or quarterly. Fast-moving catalogs, seasonal products, and frequent price changes may justify more frequent refreshes.

7) Does this replace reorder point planning?

No. ABC analysis complements reorder points, safety stock, and forecasting. It tells you where tighter control matters most, but it does not replace day-to-day replenishment logic.

8) What does the Pareto chart show?

The bars show annual consumption value by SKU after sorting from highest to lowest. The line shows cumulative value percentage, making threshold-based class breaks easy to spot.