ABC report, PRoduct grade of items not in stock

Shopify Discussion

Topic summary

Main issue: The OP questions Shopify’s ABC report because some known good sellers show as C-grade after being out of stock, and asks for a way to measure how fast items sell when they are in stock.

Clarifications provided:

  • ABC analysis groups products by revenue contribution: A ≈ 80% of revenue, B ≈ 15%, C ≈ 5% (per Shopify’s docs, link shared).
  • Concern remains that stockouts may skew grades for otherwise strong products.

Suggested solutions:

  • Use Shopify’s “Sell-through rate by product” report to gauge sales speed while stocked (sell-through = how quickly inventory sells over a period).
  • Consider third-party reporting apps. Report Toaster offers customizable inventory planning metrics (sell-through, velocity, stock intake, history, ABC grade). Report Pundit can build a custom ABC report and show sales for graded items over any date range (links provided).

Status/outcome: No definitive resolution. Actionable next steps are to run the Sell-through report and/or trial a third-party app to analyze velocity and custom ABC by date range; discussion remains open.

Summarized with AI on December 20. AI used: gpt-5.
1

Hello

I am not sure of how to interpret the ABC report, my main question is, I have some items graded C but we havent had them in stock for a while, and just recently re-stocked.

I know It is a good seller, but the report has it graded as C.

My concern is that since I dont know which other item is graded C for the same reason ( We carry 2000+ items) I cannot trust this report and only re-stock A grade items.

Is there a report that shows the sale speed of an item regardless of the dates? Something that says, how fast an item sold once in stock?

Thanks!

2

If you are looking for the speed at which an item sold, the best Shopify report would be the Sell-through rate by product report.

If this doesn’t work for you, a third-party app might be more helpful. Our Report Toaster app can help with all sorts of inventory planning reports, including sell-through, velocity, stock intake, history and ABC grade. All of them very customizable. Please feel free to have a look and reach out to support for help.

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3

Hi @Jbabb ,

Shopify classifies product grades based on the following criteria:

  • A-grade: Your top-selling products, making up around 80% of your revenue.
  • B-grade: These items account for 15% of your revenue and may move into A or C categories over time.
  • C-grade: Products that contribute around 5% of your revenue.

For more details on how Shopify performs ABC analysis, check out this link:

https://help.shopify.com/en/manual/products/inventory/abc-analysis

At Report Pundit, we can create a customized ABC report tailored to your needs, displaying sales for graded items across any date range. If you’d like to explore this, feel free to reach out and we’d be happy to assist you!

Best Regards,
Report Pundit

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