ABC-analyse: Find ud af hvilke produkter der tjener dig penge

Do you know which 20% of your products generate 80% of your revenue? Most webshop owners have a gut feeling about what sells well - but gut feelings are notoriously bad at telling you what actually makes money. ABC analysis gives you the answer at a glance, without having to be a statistician.

The principle is based on the well-known 80/20 rule (Pareto principle): a small proportion of your products typically account for the majority of your revenue. The ABC analysis automatically divides all your products into three groups based on their contribution:

• A-products - your stars. The few items that together make up the top 80% of revenue. Typically 20% of your assortment.
• B products - the middle group. They contribute 80-95% in total. Solid, but not critical.
• C products - the long tail. Many products that together only make up the last 5% of revenue.

How to use the ABC analysis in Shoporama

You can find the ABC analysis under Statistics → ABC analysis in Shoporama admin. The data is calculated automatically every night, so you don't need to do anything to keep it updated.

At the top of the page, select your settings:

• Period - choose between 30, 60, 90, 180 or 365 days. Determines how far back in the order history you look.
• Show based on - choose which metric to base the analysis on: Revenue ex. VAT, Quantity sold or Contribution margin (revenue minus cost).
• Compare with - add an additional metric or select All metrics to see all three classifications side by side. Products will then get combined badges such as AAB or ACA.
• Supplier and Brand - filter the list to only show products from a specific supplier or brand.

The three overview cards at the top give you a quick overview of the distribution: how many products fall into each class, what percentage they make up and what the total value is.

In the table you see the ranked list of all products. The columns show rank, product name (clickable link to the product), SKU, metric value, percentage share, running total and class badge. Horizontal dividing lines mark the transition between classes so you can quickly see where the boundaries are.

You can export the entire analysis to a CSV file using the button at the top right - handy for further processing in Excel.

What do you do with the results?

A-products: Protect your stars

The A-products are the ones that drive your business. If you run out of an A product, you'll feel it on your bottom line immediately - and you risk sending customers to competitors. Make sure these products are always in stock, reorder frequently and keep in close contact with suppliers. They should also have the best images, descriptions and placements in your store.

In marketing, the A products are your safe bets. They're already converting, so you should prioritize them in Google Shopping and Meta ads.

B products: Potential to move up

B-products sell steadily, but are not crucial in the short term. There is potential here: a B-product with a good margin can become an A-product with the right marketing push. Test promotions and offers and monitor stock levels continuously - but you don't need to tie up large amounts of capital here.

C products: Make an active decision

C-products tie up capital in your inventory without contributing significantly to the bottom line. Here you should make an active decision: can they be reduced to free up space and liquidity? Should they be removed from the range altogether? Use them in bundle offers or put them on sale. A long, limp assortment of C-items costs you inventory, overview and ultimately money.

Compare metrics: Find the hidden traps

One of the most important questions you can ask yourself is: what happens when a product is A on revenue but C on contribution margin? That's a danger signal. You sell a lot of it, but make almost no money. It could be due to too high purchase prices, too many returns - or that you're simply pricing it wrong. Find out why and fix it.

The reverse - a product that is C on revenue but A on contribution margin - is hidden gold. It doesn't sell often, but when it does, you're making good money. It deserves more attention in your marketing.

Use the Compare with feature to find these patterns. Select All metrics to see all three classifications side by side.

Contribution margin requires cost price

For the ABC analysis to calculate contribution margins, you need to have filled in the cost price of your products. If cost price is missing, a warning will appear at the top of the ABC page. Fill in the cost price to get the full picture of which products are actually making money - not just making the most revenue.

Typical pitfalls

• Don't blindly remove all C products. Niche products, seasonal products and products that drive search traffic can have strategic value despite low revenue. Use the analysis as a starting point, not a blueprint.
• Price wisely. Customers know the price of your bestsellers and compare. A price increase on an A item is quickly reflected in the conversion rate. On the other hand, you can adjust the price of C-items without anyone noticing.
• Seasonality. A C item in winter can be an A item in summer. Change the period to account for seasonality - e.g. 90 days for current performance vs. 365 days for the big picture.

Get started

Open the ABC analysis today and find your top 10 A products. Check that they have correct stock status, good images and are visible in your navigation. It takes five minutes - and it can save you a lot of bad decisions.

Check the analysis at least once a month. Product rankings change over time and a regular review will keep you ahead.

Read more about it

• Warehouse optimization with ABC analysis - practical guide to implementing ABC analysis in warehouse operations (Rackbeat)
• ABC analysis, why? - Purpose, calculation method and limitations (SCM.dk)
• Inventory management for e-commerce - optimizing inventory specifically for webshops (Rackbeat)
• Efficient webshop warehouse operations - specific recommendations from DI Handel