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Lessons › Assortment & Category Planning › Know your SKUs

Assortment & Category Planning lesson

ABC analysis

Rank SKUs by sales, then add up their share. A items make the first 80% of sales, B the next 15%, C the last 5%.

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The idea

Rank SKUs by sales, then add up their share. A items make the first 80% of sales, B the next 15%, C the last 5%:

Formulas

Sales ÷ 176040

Key points

Share of salesSKU sales ÷ Total sales.
Cumulative shareAdd the shares down the ranked list.
A, B, CA up to 80%, B up to 95%, C the rest.

A items never run out. C items get questioned at every line review.

Practice

Try each one in your head first, then open the answer.

1. In C2, work out Earbuds Pro's share of total sales. The total is in B10. Leave it as a decimal.
=B2/B10
2. Tap an A item.
Earbuds Pro, Earbuds Lite and the Fast charger make 79% of sales.
3. What share of sales do the top three SKUs make together?
(80,000 + 30,000 + 28,800) ÷ 176,040 × 100 = 78.8%

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

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About 5–10 minutes · no sign-up needed