ABC Classification in Order Fulfillment Warehouses

Most of the e-commerce sellers are familiar with the ABC classification rules of dropshipping company, but they have not totally understood it. When the inventory in the e-commerce warehouse is excess, the ABC classification method is used to optimize the inventory to bring better warehouse management.

First of all, we should know the principles of the ABC classification method: classifying the goods in the e-commerce warehouse according to their importance, value, and delivery frequency.

The first category is C-type, which are basically slow-moving goods with very small sales. Therefore, warehousing companies will put such items in the back of the e-commerce warehouse, and use less time to manage and count them.

Category B products still have a certain sales volume relative to Category C products, but they are not hot-selling products. The storage location of this kind of goods is better than that of the C-type goods, and it is easier to pack out the warehouse than the C-type goods.

Finally, there are Class A goods, which are fast-moving goods, with high sales and fast turnover. Such goods need to be placed in the position closest to the sorting area to ensure that after receiving the relevant order, the third-party warehousing and delivery company can package and ship them in the shortest time to improve work efficiency.