Quick answer: ABC analysis classifies your SKUs into three tiers based on sales velocity. A items are your top sellers driving the majority of revenue, B items are moderate performers, and C items are slow movers.
How to Classify Your Inventory with ABC Analysis Using Fulfyld Data
Let’s go through all the steps:
Step 1: Pull Your Orders Report from Shipedge
Log in to your Fulfyld client portal and navigate to the Reports tab. Select the Orders Report and set your date range to the last 90 days.
Step 2: Calculate Order Volume by SKU
In the exported file, create a pivot table with SKU as the row and order count (or units shipped) as the value. This gives you total orders per SKU for the period. Sort descending by order count, your highest-velocity SKUs are at the top.
Step 3: Calculate Cumulative Percentage of Order Volume
Add two columns to your sorted SKU list:
-
Cumulative orders: a running total of order count from the top SKU down
-
Cumulative % of total orders: cumulative orders divided by total orders for the period, expressed as a percentage
Step 4: Assign A, B, or C to Each SKU
Add an ABC classification column to your spreadsheet and label each SKU based on where its cumulative percentage falls. Your A-tier SKUs are confirmed.
Step 5: Apply the Classification to Your Operations
The classification is only useful if it changes how you manage each tier. Here’s how ABC maps to your Fulfyld operations:
Reorder management. A few items need tighter safety stock and shorter reorder cycles; these are the SKUs where a stockout directly costs you revenue.
Cycle count frequency. An item should be counted most frequently. B items quarterly. C items semi-annually or annually.
Storage review. C items that have shipped fewer than 5 times in 90 days are worth reviewing.
Peak-season buffer planning. When building your buffer stock ahead of peak season, prioritize A items first. These are the SKUs most likely to stock out during a surge and most damaging to your business if they do.
The 20% That Drives Everything
ABC analysis makes explicit what most brands know intuitively but rarely act on systematically: a small number of SKUs carry the business. Building your reorder calendar, your cycle count schedule, and your buffer planning around that reality is one of the highest-leverage operational habits you can develop.
Still Have Questions?
For help pulling order velocity data or discussing your inventory classification with your account, contact your dedicated account manager directly, or reach the Fulfyld team at hey@fulfyld.com or (256) 716-8241.
Frequently Asked Questions
Do I need special software to run ABC analysis on my Fulfyld inventory?
No. The Orders Report from Shipedge exports as a CSV or Excel file, and the full ABC analysis can be done in Excel or Google Sheets using a pivot table and a few basic formulas.
What if I only have a handful of SKUs? Does ABC analysis still apply?
Yes, though the value is more limited with a very small catalog.
Should I classify by units shipped or by order count?
It depends on your catalog. For brands where most orders contain a single unit of a single SKU, units shipped and order count will produce similar results. For brands with highly variable order quantities, order count (how many times a SKU appeared on an order) is often a better velocity indicator than units shipped.
Can a SKU move between tiers over time?
Yes, and this is one of the main reasons to re-run the analysis regularly.
What should I do with C items that have very low velocity?
Start by checking whether they’re earning their keep in storage. If a C item has shipped fewer than 5 times in 90 days and is occupying a bin at Fulfyld, calculate whether the monthly storage cost is justified by the revenue it generates. If it isn’t, you have three options: pull the inventory back, discontinue the SKU, and liquidate the remaining stock, or reduce your on-hand quantity to a minimal level and replenish only when it sells down to zero.