--- title: "ABC analysis for inventory: built in 2 minutes with byrdAI | byrd" description: Which products carry your volume and which just tie up capital? Here is how to run an ABC analysis of your inventory with byrdAI in Claude or ChatGPT, no Excel needed. image: https://blog.getbyrd.com/hubfs/ABC%20Analysis%20byrdAI.png --- [![Getbyrd](https://blog.getbyrd.com/hubfs/raw_assets/public/Getbyrd_May2021/images/Header_logo.svg "Getbyrd")](https://getbyrd.com/en) 12+ fulfillment centers in Europe - [Home](https://getbyrd.com/en) - Product - [Our Fulfillment Services](https://getbyrd.com/en/fulfillment) - [Switching 3PL](https://www.getbyrd.com/en/3pl-switch) - [Returns Portal](https://getbyrd.com/en/returns-portal) - [Dedicated Support](https://www.getbyrd.com/en/account-management) - Integrations - [Overview](https://www.getbyrd.com/en/all-integrations) - [Amazon](https://getbyrd.com/en/amazon-fulfillment) - [Billbee](https://getbyrd.com/en/billbee-fulfillment) - [ChannelEngine](https://getbyrd.com/en/integration-channelengine) - [eBay](https://www.getbyrd.com/en/ebay-fulfillment) - [Mirakl](https://www.getbyrd.com/en/mirakl-fulfillment) - [PlentyOne](https://getbyrd.com/en/plentymarkets-fulfillment) - [PrestaShop](https://getbyrd.com/en/integration-prestashop) - [Procuros](https://www.getbyrd.com/en/procuros-fulfillment) - [Shopify](https://getbyrd.com/en/shopify-fulfillment) - [Shopware](https://getbyrd.com/en/shopware-fulfillment) - [WooCommerce](https://getbyrd.com/en/woocommerce-fulfillment) - [Xentral](https://getbyrd.com/en/xentral-integration) - Solutions - [Baby Products](https://www.getbyrd.com/en/baby-products) - [Beauty, Health & Cosmetics](https://www.getbyrd.com/en/beauty-health) - [Electronics](https://www.getbyrd.com/en/electronics) - [Food, Beverages & Supplements](https://www.getbyrd.com/en/food-beverages) - [Jewelry, Accessories & Watches](https://www.getbyrd.com/en/jewelry-accessories) - [Pet Supplies](https://www.getbyrd.com/en/pet-supplies) - [Toys and Games](https://www.getbyrd.com/en/toys-fulfillment) - [For New Businesses](https://getbyrd.com/en/new-businesses) - [For Established Retailers](https://getbyrd.com/en/established-retailers) - [For Enterprises](https://getbyrd.com/en/enterprise) - [Pricing](https://getbyrd.com/en/pricing) - Fulfillment Center Network - [Fulfillment Center Europe](https://getbyrd.com/en/european-fulfillment-network) - [Austria](https://getbyrd.com/en/european-fulfillment-network/austria) - [France](https://getbyrd.com/en/european-fulfillment-network/france) - [Germany](https://getbyrd.com/en/european-fulfillment-network/germany) - [UK](https://getbyrd.com/en/european-fulfillment-network/uk) - Resources - [Blog](https://blog.getbyrd.com/en) - [Success Stories](https://getbyrd.com/en/references) - [Demo](https://www.getbyrd.com/en/fulfillment-software) - [Whitepaper: E-Commerce Slowdown](https://getbyrd.com/en/survive-and-thrive-ecommerce-whitepaper) - [E-Book: Sustainable Supply Chain](https://getbyrd.com/en/sustainable-e-commerce-supply-chain-e-book) - [E-Book: Cross-Border E-Commerce](https://getbyrd.com/en/cross-border-ecommerce-eu-ebook) - [Whitepaper: 7 Fulfillment Tips](https://getbyrd.com/en/7-fulfillment-tips-whitepaper) - About us - [Team](https://getbyrd.com/en/team) - [Career](https://getbyrd.com/en/jobs) - [Sustainability](https://getbyrd.com/en/sustainability-at-byrd) - [Partnerships](https://getbyrd.com/en/partnerships) - [Press](https://getbyrd.com/en/press) - [Login](https://app.getbyrd.com/en/login?_ga=2.175706018.1283541857.1621736684-626381589.1621482964) - [English](https://blog.getbyrd.com/en/abc-analysis-byrd-ai) - [Deutsch](https://blog.getbyrd.com/abc-analyse-byrd-ai) - [English - United Kingdom](https://blog.getbyrd.com/en-gb/abc-analysis-inventory-byrdai) - [Español](https://blog.getbyrd.com/es/analisis-abc-inventario-byrdai) - [Français](https://blog.getbyrd.com/fr/analyse-abc-stocks-byrdai) - [Italiano](https://blog.getbyrd.com/it/analisi-abc-inventario-byrdai) [Request a quote](https://www.getbyrd.com/en#angebot-anfordern) # ABC analysis in the warehouse Which products carry your business, and which just cost you money? [**Phillip Pitsch**](https://blog.getbyrd.com/en/author/phillip-pitsch) Published: July 27, 2026 Updated: August 03, 2026 ## Table of Content Almost every e-commerce assortment hides the same uncomfortable truth: a small share of your products drives nearly all of your volume. The rest sits on the shelf, racks up storage costs, and ties up capital. ABC analysis makes exactly that visible. Until now, that meant exporting data, opening Excel, building a pivot, sorting, and accumulating. With [byrdAI](https://www.getbyrd.com/en/byrd-ai), it means asking a question. In this article, we show you what an ABC analysis is, how to build one with byrdAI as an interactive dashboard in under two minutes, and, more importantly, which decisions to draw from it. ## **What is an ABC analysis?** ABC analysis splits your assortment into three classes based on the Pareto principle: - **A-items:** the vital few. The smallest group of SKUs that together account for around 80% of your shipping volume. - **B-items:** the solid middle, contributing the next 15% or so. - **C-items:** the trivial many. Often more than half of your SKUs, yet together they move only about 5% of your volume. It sounds academic, but it is the basis for very concrete questions: which products can never go out of stock? Where is safety stock worth holding? And which 100 or 3,000 SKUs are really just generating storage costs?  ## **Why ABC analysis is so valuable in fulfillment** Three pain points merchants raise with us again and again: **Stockouts on the wrong products.** When a C-item sells out, almost nobody notices. When your A-item sells out, you lose revenue and rankings every single day. Without ABC classification, you treat both the same. **Dead capital in the long tail.** C-items occupy storage locations you pay for every month. Some of that belongs in your assortment; some of it belongs in a clearance sale, a bundle, or a delisting. **Counting effort with no priorities.** Counting and maintaining every SKU at the same frequency wastes time on products almost nobody orders. ## **How to build the ABC analysis with byrdAI** byrdAI is byrd's MCP server. It connects your live fulfillment data directly to Claude or ChatGPT. Once connected, a single prompt is enough: "Run an ABC analysis of my inventory and explain each class." Your AI assistant calls the byrd report report\_abc\_analysis and returns the classification with current numbers. In Claude, you can go one step further. With our ready-made dashboard prompt (copyable with one click on the [byrdAI page](https://www.getbyrd.com/en/byrd-ai)), Claude builds you an interactive live dashboard that pulls fresh data from byrd every time you open it. ![abc analysis byrdai](https://blog.getbyrd.com/hs-fs/hubfs/Screenshot%202026-07-21%20at%2014.09.15.png?width=1143&height=851&name=Screenshot%202026-07-21%20at%2014.09.15.png) The dashboard shows you at a glance: **The Pareto curve.** Every shipped SKU as a bar, sorted by volume, with the A, B, and C zones colour-coded. In our sample assortment, 107 of roughly 900 SKUs make up a full 80% of volume. The last 620 SKUs combined: 5%. **The concentration of your demand.** A single value (the Gini index) tells you how dependent you are on a handful of products. High concentration means your bestsellers need special protection. Low concentration means your risk is spread out, but your assortment is more complex to manage. **Policy cards per class.** For A, B, and C items, the dashboard suggests a treatment directly: service level, counting cadence, and safety-stock strategy. ## **![abc analysis](https://blog.getbyrd.com/hs-fs/hubfs/Screenshot%202026-07-21%20at%2014.09.55.png?width=1737&height=533&name=Screenshot%202026-07-21%20at%2014.09.55.png)** ## **Which decisions to draw from it** The analysis is only as good as what you do next. Proven takeaways per class: **A-items:** Service level of 98 to 99%, weekly inventory checks, generous safety stock, preferred storage locations. Every day of stockout here costs real money. **B-items:** Monthly checks, moderate safety stock. Watch the SKUs sitting on the border with A in particular: those are your risers. **C-items:** Review quarterly. And question them honestly: which C-items earn their storage location? Clearance campaigns, bundles with A-items, or delisting free up capital and space here. **Expert tip:** ABC analysis classifies by shipping volume, not by revenue. A high-priced item with low volume can still be important. So combine the ABC view with your contribution margin before you delist anything. And for assortments that deliberately compete on variety (spare parts or accessories for many device types, for example), a large C share is not a mistake. It is the business model. ![byrd ai abc analysis](https://blog.getbyrd.com/hs-fs/hubfs/Screenshot%202026-07-21%20at%2014.10.06.png?width=1141&height=1217&name=Screenshot%202026-07-21%20at%2014.10.06.png) From report to routine: what byrdAI makes of it This is the real difference from any dashboard report: you can not only view the analysis, but also process it further and automate it. **Adjust.** "Show me bundles only." "Use 70/90 instead of 80/95 as the thresholds." "Compare this quarter with the last one." Your assistant rebuilds the report live. **Schedule.** Have the ABC analysis rebuilt automatically every quarter and sent to you as a summary, by email or straight into your Slack channel. **Trigger.** Combine the classes with other byrd reports: "If an A-item drops below 14 days of cover, draft the reorder email to my supplier immediately." That gives your most important product class an automatic early-warning system. **Take it further.** With a follow-up prompt, your C-items turn into a clearance list including the capital tied up in them. One of our merchants used this to uncover €442,000 locked up in slow movers and overstock. ## **Your first ABC analysis in two minutes** If you are already a byrd customer: connect byrdAI to Claude or ChatGPT (it takes around 5 minutes) and copy the ABC prompt from our [byrdAI page](https://www.getbyrd.com/en/byrd-ai) or from the box below. If you are not a byrd customer yet: byrdAI comes only with byrd fulfillment, as the first European 3PL with an MCP server. [Talk to us](https://www.getbyrd.com/en/byrd-ai#byrdai-cta), and we will show you both together. **Example prompt for the ABC analysis report (adjust it however you like).** Build a live, persisted HTML dashboard artifact that runs an ABC analysis of my products, pulling fresh data from byrd every time it opens. Single self-contained HTML file, light mode only. ## Data source - Tool: report\_abc\_analysis (byrd MCP), called with { date\_from, date\_to } for a rolling window: Last quarter / 6 months (default) / 12 months. Cache per window. - Row fields: product\_name, sku, product\_type, units\_shipped, cumulative\_pct, abc\_class. One row per shipped SKU (no zero-movers); classification is by units, not revenue. - Recompute the A/B/C tiers client-side from cumulative share of units so thresholds and filters stay live: default A = top SKUs up to 80% cumulative volume, B = to 95%; offer alternative cut-offs 70/90 and 85/95. - Merchandise only: singles = product/prepacked\_product, bundles = bundle; exclude packaging/branding/alias types. - The show-tier control is a table-only drill; KPIs and charts stay at universe level (period + product-type + hide-test applied). ## Tech & style - Chart.js v4 and Grid.js v5 from the allowed CDN, no other libraries, neutral system font stack. - Generic light palette, indigo accent #4F46E5. Tier colours: A indigo #4338CA, B amber #D97706, C slate #94A3B8. ## Layout (top to bottom) 1. Header: eyebrow "Inventory prioritisation - ABC classification", H1 "ABC analysis - where your outbound volume concentrates", indigo accent rule, subtitle with the window's date range + "classified by units shipped" + last-updated time. No logo. 2. Controls card: period buttons Last quarter / 6 months / 12 months (re-fetches); threshold buttons 80/95 / 70/90 / 85/95 (A/B cut-off); product-type buttons All / Singles / Bundles; show-tier buttons All / A / B / C (table drill); "Hide test SKUs" checkbox. 3. Four KPI cards: SKUs classified (+ total units + per day), A-items (count, "x% of SKUs drive y% of volume"), C-items (count + tiny volume share), Concentration (Gini index + "top 20% of SKUs ship x% of units"). 4. Hero panel "The ABC Pareto curve": every shipped SKU as a share-of-volume bar coloured by tier + a cumulative line on a right 0-100% axis. Custom plugin work: shade the A/B/C x-zones with tier tints, draw dashed horizontal guides at the two cumulative cut-offs, vertical dividers at the tier borders, and a zone label per tier ("A - n SKUs - x%"). One-line reading guide above. 5. Three tier policy cards (A/B/C): recommended service level (98-99% / 95% / 90%), cycle-count cadence (weekly / monthly / quarterly), and safety-stock stance per tier, each with the tier's SKU count and volume share. 6. Two panels side by side: "Vital few vs. trivial many" (two 100%-stacked horizontal bars - share of SKUs vs. share of volume, split A/B/C, with percentage labels drawn inside the segments) and a Lorenz concentration curve (cumulative % of SKUs vs. cumulative % of volume, ascending, filled, against the equality diagonal, with the Gini value annotated). 7. Recommended actions: protect A-item service levels (name the top SKUs), interpret the concentration (high Gini = fragile dependence vs. balanced), right-size the C tail (count + suggestions), re-run monthly and watch SKUs near tier borders. 8. Grid.js table (sortable, searchable, 12 rows/page) sorted by units desc: SKU (hover copy button + open-in-byrd link to https://app.getbyrd.com/inventory/products/all?q=&fields=sku), Product, ABC badge, Units as a tier-coloured mini-bar + number, Share %, Cumulative %. Above: "Showing N SKUs" + "Copy N SKUs" button. 9. Footer explaining: tiers are by units shipped (not revenue) over the selected window; the tool's own abc\_class uses 80/95 and the dashboard reproduces it as the default; only SKUs that shipped appear; note the possible ABC x XYZ extension with a demand-variability view. ## Details - Thousands separators; shares with 1 decimal. Escape all dynamic HTML. - Custom positioned tooltip div driven by data-tip attributes (native tooltips don't work in the sandbox). - Handle a missing connector gracefully; show loading and error states. Finish by verifying the rows load, the Pareto / stacked bar / Lorenz charts render, and there are no console errors. ## **Frequently asked questions about ABC analysis with byrdAI** **How often should I run the ABC analysis?** Quarterly is the right rhythm for most merchants. With byrdAI, rebuilding it costs no time, so a monthly look at movements between the classes is worth it too. **What is the difference from the top-mover report?** The top-mover report shows your bestsellers as a ranking. ABC analysis classifies your entire assortment and turns it into action rules per class. **Do I need Excel or a BI tool for this?** No. byrdAI delivers the analysis directly in Claude or ChatGPT, as an interactive dashboard with filters, charts, and a table if you want. **What does byrdAI cost?** During the beta, byrdAI is included free in your account for byrd customers.   ## As seen on               [![Getbyrd](https://blog.getbyrd.com/hubfs/raw_assets/public/Getbyrd_May2021/images/Footer_logo.svg "Getbyrd")](https://getbyrd.com/en/) - Services - [Fulfillment](https://getbyrd.com/en/fulfillment) - [New Businesses](https://getbyrd.com/en/new-businesses) - [Established Retailers](https://getbyrd.com/en/established-retailers) - [Enterprises](https://getbyrd.com/en/enterprise) - [European Fulfillment Network](https://getbyrd.com/en/european-fulfillment-network) - Integrations - [Amazon FBM](https://getbyrd.com/en/amazon-fulfillment) - [Billbee](https://getbyrd.com/en/billbee-fulfillment) - [Mirakl](https://getbyrd.com/en/mirakl-fulfillment) - [ChannelEngine](https://getbyrd.com/en/integration-channelengine) - [PlentyONE](https://getbyrd.com/en/plentymarkets-fulfillment) - [PrestaShop](https://getbyrd.com/en/integration-prestashop) - [Shopify](https://getbyrd.com/en/shopify-fulfillment) - [Shopware](https://getbyrd.com/en/shopware-fulfillment) - [WooCommerce](https://getbyrd.com/en/woocommerce-fulfillment) - [Xentral](https://getbyrd.com/en/xentral-integration) - Locations - [Logistics Locations Europe](https://getbyrd.com/en/european-fulfillment-network) - [UK](https://getbyrd.com/en/european-fulfillment-network/uk) - [Austria](https://getbyrd.com/en/european-fulfillment-network/austria) - [France](https://getbyrd.com/en/european-fulfillment-network/france) - [Germany](https://getbyrd.com/en/european-fulfillment-network/germany) - Partner - [Become a partner](https://getbyrd.com/en/partnerships) - About us - [Team](https://getbyrd.com/en/team) - [Blog](https://blog.getbyrd.com/en) - [Our Customers](https://getbyrd.com/en/references) - [Press](https://getbyrd.com/en/press) - [Career](https://getbyrd.com/en/jobs) - [Sustainability](https://getbyrd.com/en/sustainability-at-byrd) - Additional links - [Terms and Conditions](https://getbyrd.com/en/tac) - [Privacy Policy](https://getbyrd.com/en/privacy) - [Imprint](https://getbyrd.com/en/imprint) - [Contact](https://getbyrd.com/en/contact) - [Help](https://support.getbyrd.com/en/knowledge-base) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Phillip Pitsch", "url" : "https://blog.getbyrd.com/en/author/phillip-pitsch" }, "dateModified" : "2026-08-03T08:30:24.742Z", "datePublished" : "2026-07-27T13:52:33.000Z", "headline" : "ABC analysis for inventory: built in 2 minutes with byrdAI | byrd", "image" : [ "https://blog.getbyrd.com/hubfs/ABC%20Analysis%20byrdAI.png" ], "mainEntityOfPage" : { "@id" : "https://blog.getbyrd.com/en/abc-analysis-byrd-ai", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://api.hubapi.com/avatars/v1/signed-uris/1ClMKDwgEEgtnZXRieXJkLmNvbRiayvb9BSD_sesFKidicmFuZGluZzphcGk6d2ViOnVzZXItdHJhZmZpYzp1cy1lYXN0LTEyDDIuMjAyLjEyNS43MBIZAHsNx2Q747acIaTrTi2IsGzRxJC60wqRSg" }, "name" : "byrd technologies" } } ```