Inventory glossary

What is Stock velocity classes?

Stock velocity classes are groups of SKUs sorted by how fast each one sells, usually labeled fast, medium, and slow movers.

Grouping SKUs by velocity tells you where to spend your reorder time and cash. Fast movers need frequent checks and tight stock cover so you never run out, while slow movers can be checked less often and held in smaller quantities.

Use velocity classes to set different review schedules and safety stock rules per group instead of treating every SKU the same way. A candle that sells 50 units a week needs a different reorder rhythm than one that sells 2 units a month.

Example

A candle store sells Vanilla Oak at 60 units a week, Cedar Pine at 15 units a week, and Lavender Mint at 2 units a week. Vanilla Oak goes in the fast class and gets checked every week. Cedar Pine is medium and gets checked every two weeks. Lavender Mint is slow and gets checked monthly, with a smaller reorder quantity each time.

Common mistakes

  • Using one review schedule for every SKU regardless of speed wastes time on slow movers and risks stockouts on fast movers.
  • Setting velocity classes once and never updating them as sales patterns shift.
  • Confusing velocity with profitability, a fast seller is not always your most profitable SKU.

Stock velocity classes and SteadyShelf

SteadyShelf forecasts sales per variant, so it naturally highlights which SKUs are fast or slow movers when setting order-by dates and reorder quantities.

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Related terms

ABC analysis · Product velocity · Slow-moving inventory · XYZ analysis

Full inventory glossary

FAQ

How is stock velocity classes different from ABC analysis?

ABC analysis usually sorts SKUs by value, like revenue or cost of goods sold. Stock velocity classes sort SKUs purely by how fast units sell. A SKU can be high value but slow moving, or low value but fast moving, so the two groupings often do not match.

How many velocity classes should a small store use?

Three classes, fast, medium, and slow, is enough for most small stores. Adding more classes rarely helps unless you carry hundreds of SKUs with very different sales speeds.

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