Rank products by sales value from a Shopify export, then compare gross profit by tier. Build a reproducible spreadsheet check with explicit cutoffs and reconciled totals.
ABC analysis in Shopify ranks products by sales value so a store team can see which items account for the largest share of revenue. A useful export check also compares gross profit within each tier. The sales ranking and the margin answer different questions, so keep both visible.
Shopify describes ABC analysis as grouping products by their contribution to revenue, using A, B, and C tiers. That gives a useful priority list for reviewing an assortment. It does not by itself tell you what to buy, discontinue, or discount.
This workflow starts with a sales export you already have. It builds an independent check using an explicitly chosen net-sales basis, rather than assuming that every platform report uses identical dates, sales definitions, or boundary handling. Record those choices before comparing your calculated labels with a report.
For customer-level tiering, use the separate ABC analysis in Excel guide. Here the unit being ranked is a product or SKU, and the output is a product review list.
Choose a closed period and retain the export's filters with your working file. A US store might use September 1 through September 30, 2026, in USD. Aggregate the underlying rows into these fields:
| Field | What belongs in it |
|---|---|
| Product or SKU identifier | A stable identifier at the selected ranking level |
| Product name | A readable label for the review meeting |
| Net sales (USD) | Product sales after the included discounts and returns |
| Cost of goods sold (USD) | The cost attributable to those same sold units |
| Period and currency | The dates and currency shared by the whole table |
Keep shipping revenue and sales tax outside this product ranking. Document how returns are attributed, especially if a return appears after the original sale. If the export lacks reliable historical product costs, complete the sales ranking and mark the margin comparison incomplete. A missing cost is not evidence of a zero cost.
Use identifiers to combine rows. Product names can change, and a name shared by two sizes can conceal an important replenishment difference. Compare the aggregated net-sales total with the filtered export total before sorting anything.
The following example is a fictional US outdoor store. The five products are already sorted by net sales, largest first. Its working policy assigns A until cumulative sales reach or pass 80%, then B until they reach or pass 95%, and C afterward. The product crossing a boundary stays in the earlier tier.
| Product | Net sales (USD) | COGS (USD) | Gross profit (USD) | Sales share | Cumulative share | Tier |
|---|---|---|---|---|---|---|
| Trail pack | 60,000 | 42,000 | 18,000 | 60.0% | 60.0% | A |
| Rain shell | 20,000 | 8,000 | 12,000 | 20.0% | 80.0% | A |
| Camp light | 10,000 | 7,500 | 2,500 | 10.0% | 90.0% | B |
| Hiking socks | 6,000 | 2,400 | 3,600 | 6.0% | 96.0% | B |
| Repair kit | 4,000 | 3,000 | 1,000 | 4.0% | 100.0% | C |
| Total | 100,000 | 62,900 | 37,100 | 100.0% |
These boundaries are this store's review policy. They are not a requirement that every assortment must fit exactly. Hiking socks take B beyond its intended cumulative boundary because a product cannot be split into partial labels.
In Excel, put product in A, net sales in B, cost in C, gross profit in D, sales share in E, cumulative share in F, prior cumulative share in G, and class in H. Enter the formulas below in row 2 and fill through row 6:
D2 = B2-C2
E2 = B2/SUM($B$2:$B$6)
F2 = SUM($E$2:E2)
G2 = F2-E2
H2 = IF(G2<80%,"A",IF(G2<95%,"B","C"))
Microsoft documents that SUM adds values or ranges, which supplies both the fixed denominator and the running total here. Keep full precision in the formulas and format shares to one decimal place. Use a stable identifier as the second sort key when sales are tied.
The underlying Pareto analysis explains cumulative contribution in more depth. This check adds the product costs that the revenue curve leaves out.
Group the classified rows by H and sum sales, cost, and gross profit. Calculate each tier's margin from those sums, rather than averaging product percentages.
| Tier | Net sales (USD) | COGS (USD) | Gross profit (USD) | Gross margin |
|---|---|---|---|---|
| A | 80,000 | 50,000 | 30,000 | 37.5% |
| B | 16,000 | 9,900 | 6,100 | 38.1% |
| C | 4,000 | 3,000 | 1,000 | 25.0% |
| Total | 100,000 | 62,900 | 37,100 | 37.1% |
Gross margin is gross profit divided by net sales; the gross profit margin guide covers the cost definition. B's unrounded result is 6,100 / 16,000 = 38.125%, shown as 38.1%. The total is 37,100 / 100,000 = 37.1%.
Three checks should pass: tier sales equal product sales, tier gross profit equals product gross profit, and total sales minus total COGS equals total gross profit. Those checks prove the grouping arithmetic. They do not establish that the supplied cost values are correct; the finance owner must confirm the cost basis.
The store can now ask a focused question. Trail pack generates the most sales, but its $18,000 gross profit should be reviewed alongside Rain shell's $12,000. Use a product analysis dashboard for the broader assortment discussion. For purchasing concentration by vendor, ABC supplier analysis is a separate ranking with a different unit of analysis.
Covirage is not affiliated with Shopify or Microsoft.
Bring a sample of your own sales export with product identifiers and comparable costs. Covirage maps the columns, and its tools compute and check the product and tier figures; the external AI model explains the results with every figure traced to its rows. Create a free Covirage account, which takes about a minute, then set up your business and bring your file.
See spreadsheet analysis with Covirage for the supporting workflow.
Choose the level that matches the decision. Product rankings help review the assortment, while variant or SKU rankings help decide which sizes and colors need attention. Keep one level throughout the table; combining parent products and their variants counts the same sales twice.
No. A revenue-based A grade identifies a large contributor to sales under the chosen cutoffs. Gross profit also depends on product cost. Add comparable costs for the same sales rows before deciding whether a high-volume product deserves more stock or promotion.
Use a review schedule that matches replenishment and assortment decisions. Keep the reporting window consistent, save the previous classification, and investigate changes. A promotion or seasonal launch can change rankings without showing a lasting change in underlying customer demand.