The 80/20 rule (Pareto Principle) applied to inventory states that approximately 80% of your sales come from 20% of your products. This insight helps you prioritize where to focus your inventory management efforts.
of your products
of your revenue
Focus your inventory management efforts on this critical 20%.
ABC analysis classifies inventory into three categories based on value contribution:
Top 20% of SKUs
Account for ~80% of total value. Require tight control, frequent counting, and optimized reorder points.
Next 30% of SKUs
Account for ~15% of total value. Moderate control with periodic review. Balance between A and C approaches.
Bottom 50% of SKUs
Account for only ~5% of total value. Simplify management with basic controls and less frequent attention.
Pull annual sales by SKU from your inventory system.
Multiply units sold by unit price for each product.
Rank all products from highest to lowest revenue.
Add running totals; products reaching 80% of total revenue are A items.
A = top 80% of value, B = next 15%, C = remaining 5%.
StockZip helps you identify and track your most valuable inventory. Use tags, filters, and reports to focus your attention on the items that drive your business.
Common questions about scanning, offline mode, pricing, and migration.
The 80/20 rule (Pareto Principle) states that roughly 80% of your sales come from 20% of your products. It helps prioritize inventory management efforts on the items that matter most.