What make a product fall into "Dead D class"

2 min. readlast update: 08.28.2025
 

How are products classified?

Products are categorised into four classes based on profit and sales performance:

  • Class A (Winners): High profit and consistent sales (≈70% of sales velocity).

  • Class B (Contenders): Reasonable profit and good sales (≈20% of sales velocity).

  • Class C (Underperforming): Lower ROI (≈10% of sales velocity).

  • Class D (Dead): Negative profit or no sales at all. Note: Newly launched items also start in Class D until their first sale.

 

A product is placed in Class D only if it records zero sales for the entire selected date range.

So What makes a product fall into Class D (Dead)?

Example Scenario

Date Range: July 1 – July 31
Product: Fry Pan

  • July 1–13: Fry pan makes sales → temporarily considered Class A (based on this period alone).

  • July 14–31: Fry pan is out of stock → 0 sales.

Question: What is the fry pan’s class for the full date range of July 1–31?

Answer:
It depends on total sales contribution, but one thing is certain:  The fry pan cannot be Class D (since it did record sales).

Its classification will be A, B, or C, depending on cumulative sales compared to total website sales.

Examples

  1. Website sales (July 1–31): $100k

    • Fry pan sales (July 1–13): $50k

    • Other products: $30k

    • Fry pan contributes 50% of total sales → Class A

  2. Website sales (July 1–31): $100k

    • Fry pan sales (July 1–13): $30k

    • Air fryer sales (July 14–31): $70k

    • Fry pan contributes 30%Class B

    • Air fryer contributes 70%Class A

 

Key Clarification

  • The classification system is based only on sales performance within the selected date range.

  • Out-of-stock periods do not affect classification; only total sales do.

 

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