Free ABC Analysis Tool
Pareto inventory classification
Paste your product list with annual revenue to instantly classify inventory into A (high value), B (medium), and C (low) categories using the 80/20 Pareto rule.
Format: Product Name, Annual Revenue — one product per line. First line can be a header (it will be skipped if non-numeric).
What Is ABC Analysis?
ABC Analysis is an inventory management technique that classifies products into three categories based on their revenue contribution. It applies the Pareto principle (the 80/20 rule): a small number of products (Class A) typically generate the majority of revenue, while a large number of items (Class C) contribute very little. By identifying which products belong to which class, businesses can focus their stock control effort, safety stock, audit frequency, and supplier negotiations where they matter most — on the items with the highest financial impact.
How to Run ABC Analysis in 2 Steps
Step 1 — Paste Your Product & Revenue Data
Prepare a two-column list: Product Name and Annual Revenue (or annual sales value). Paste it in CSV format — one product per line, name and revenue separated by a comma. Use the 'Load Sample' button to see the expected format.
Step 2 — Click Run ABC Analysis
The tool sorts products by revenue (highest first), calculates each product's % contribution and cumulative %, then classifies: A = top products contributing ~80% of revenue, B = next ~15%, C = remaining ~5%. Results are shown in a sortable table.
Who Uses This ABC Analysis Tool?
Retail Store Managers
Identify which products drive most revenue so you can give them prime shelf space, tighter stock controls, and priority reordering.
Warehouse & Logistics Teams
Place A-category items closest to dispatch areas. Use ABC classification to design efficient warehouse layouts.
Finance & Procurement Teams
Focus supplier negotiations and contract renewals on A items, which have the highest impact on gross margin.
E-commerce Sellers
Prioritise ad spend and inventory investment on A items. Identify C items that tie up cash without contributing meaningful revenue.
Frequently Asked Questions
What is ABC analysis in inventory management?
ABC analysis (or ABC classification) is a method of categorising inventory items based on their value or revenue contribution. It applies the Pareto principle: roughly 20% of items (Class A) generate 80% of revenue. Class B items generate the next 15%, and Class C items the remaining 5%.
What are the ABC classification thresholds?
Standard thresholds: A items = products that cumulatively contribute 0–80% of total revenue (highest priority). B items = 80–95% cumulative (medium priority). C items = 95–100% cumulative (lowest priority, highest count).
How do I use ABC analysis to manage inventory?
A items deserve the most attention: tighter stock controls, frequent reorder review, safety stock, and accurate demand forecasting. B items get moderate controls. C items can be managed with simpler rules — bulk orders, less frequent reviews, or minimum stock levels.
What data do I need for ABC analysis?
You need a list of products and their annual sales revenue (or annual sales quantity, or annual profit contribution). The tool uses revenue by default. Export this from your POS, inventory software, or accounting system.
Can I use quantity instead of revenue?
Yes. If you paste unit sales count instead of revenue, the classification will be based on volume rather than value. Revenue-based ABC is more common for financial planning; quantity-based ABC is useful for logistics and replenishment planning.
Is this ABC analysis tool free?
Yes, fully free. No account, no downloads, no sign-up.