Abstract: An inventory control model of the dual-channel on e-market is developed including the dynamic controlling process for both Internet and traditional channels, where the inventory level is a state variable and the product output and supply are controlling variables. Describing quantitatively the bullwhip effect of the dual-channel and analyzing its control mechanism, an H∞ control strategy is proposed according to control theories to control the bullwhip effect when the demand's disturbance is worst. Combining with the practices of e-business in Shanghai Baosteel Yichang Co., a simulating calculation is done to analyze the bullwhip effect, which verifies the controlling effect of H∞ control algorithm for the dual-channelon e-market.