Product management is the key to success for an emerging or new online business. Now that online shopping is slowly becoming a trend, prompt fulfilment of customer demand is paramount. This is where order fulfillment and stock management come into play. It’s the force that will drive your online business, preventing customer frustration and boosting your bottom line.
A lack of understanding about stock control can hamper e-commerce sellers’ reputations.
Let us learn what is stock control and how it can help improve e-commerce business.
What Is Stock Control?
Stock control, also known as inventory control, is the simplest measure of stocks going in and out of your business. It means to have the right products, in the right quantities, at the right time, and with minimum storage costs. AAn efficient stock control system will allow you to track a product from when it enters your warehouse logistics process until it is supplied to the client. The consequences of not doing this well are significant – retailers lose an estimated $1.1 trillion globally due to poor inventory management and out-of-stock items alone. This highlights that a solid stock control strategy is essential for businesses, especially, e-commerce sellers.
Key Elements of a Stock Control System
The efficient stock control system contains several dependent variables, all critical in maintaining a healthy stock. These include:
Inventory Tracking
This is the basis of any stock movement. It is an elaborate way of keeping track of all the products you hold in stock, their whereabouts, quantity, and status. Several modem companies use stock control software with barcodes or RFID tags to automate this process. This enables real-time visibility and assists in evading human error. Also, real-time tracking enhances the efficiency of the given business.
Demand Forecasting
Demand forecasting is knowing what demand your customers will have for your product. Given shopping patterns during Black Friday, Cyber Monday, and the Australian holiday seasons, demand forecasting applies to Australian online shops. You can project demand through the study of past sales records, market trends, and upcoming promotions, and then have proper stock control procedures in place so you can fulfil orders with an accurate delivery lead time.
Order Management
This aspect focuses on how you handle customer orders. It’s the link between a customer’s purchase and the warehouse. An efficient stock control system automatically updates inventory levels when an order is placed, preventing overselling. Moreover, it can streamline the picking, packing, and shipping processes, ensuring orders are fulfilled quickly.
Storage Management
The best store operation involves positioning your warehouse to operate as well as possible. That includes placing higher-quality carts in easy-to-reach locations and utilising innovative storage layouts. This is a critical part of inventory management that reduces the picking time to a minimum and avoids the risk of damaged or misplaced inventory.
Stock Valuation
This element involves assigning a monetary value to your inventory. In Australia, the Australian Taxation Office (ATO) requires companies to report their value of “trading stock” for tax purposes. Stock control methods such as First-In, First-Out (FIFO) and the weighted average method are standard methods to value stock to facilitate proper financial reporting. Regular stocktake checks are essential for accuracy.
Loss Prevention
Loss prevention involves minimising inventory loss caused by damage, spoilage, or pilferage. Periodic audits and an effective stock control system will allow you to catch discrepancies and trace their cause quickly. A recent study from Griffith University revealed that Australian retailers are losing almost 2% of their annual turnover due to crime, amounting to $7.79 billion annually in losses. This statistic highlights the importance of robust stock control procedures in protecting a business’s bottom line.
Benefits of Effective Stock Control
An effective stock control system has many advantages, directly contributing to your online business success. These are as follows:
Reduced Costs
The most apparent benefit is minimising cost. You don’t incur warehousing fees, insurance, and risk of obsolescence for not storing so much. Second, an effective stock control system reduces the amount of expensive last-minute shipping to complete orders, a frequent problem for most businesses. According to the Australian Bureau of Statistics (ABS), efficient inventory management contributes to broader economic health, with business inventories rising 0.8% in the March 2025 quarter, indicating active and well-managed stock flow across the economy.
Improved Customer Satisfaction
Nothing is more frustrating for a customer than an item out of stock after clicking “buy.” Strong stock control ensures that your products are always available, leading to faster order fulfilment and happier customers. This builds trust and encourages repeat business.
Enhanced Operational Efficiency
When your stock is organised where it is and easy to track, your entire operation goes more smoothly. From a cleaner, more efficient pick and pack operation to timely, accurate reports, a well-designed stock control system avoids bottlenecks and allows your staff to focus on business development.
Better Decision-Making
A well-developed and executed stock control system informs you of valuable items. You can tell what is selling, what isn’t, and when you should reorder. It keeps you informed so you can make sound decisions about your merchandise, advertising, and buying, which puts you ahead of everyone else.
Regulatory Compliance
Australian businesses must follow good stock control practices to meet tax and accounting obligations. Keeping records of your trading stock ensures you comply and are prepared for an audit.
Stock Control Methods Explained
No one method fits every stock control. Different approaches will suit different businesses. These are as follows:
Just-in-Time (JIT)
This tactic involves buying merchandise only when needed to fill consumer orders. A perfect example of inventory management is a company placing a customer’s order and subsequently ordering from their supplier for immediate transportation. JIT eliminates storage charges and tied-up capital.
Fixed-Order Quantity
It is a basic technique where you buy a predetermined number of units of a commodity whenever your stock dips to a given level. For example, a company can buy 50 units of the most sought-after product whenever its stock is at 20 units. It can be easily applied and is one of the most widely used stock control methods.
Periodic Review
This method monitors your inventory level at a given interval (e.g., every two months or monthly) and subsequently orders replenishment stock. It is less responsive than the fixed-order quantity method but can suffice for firms with steady sales patterns.
ABC Analysis
This is among the most popular stock control methods. It sorts your products into three levels based on their value and priority.
A-items
They are your most valuable products, typically few in number relative to your inventory but substantial sales value (e.g., your top 20% product that accounts for 80% of your sales). They are kept very closely tracked and undergo frequent stock control checks.
B-items
Your medium-importance, medium-value items.
C-items
Your low-importance, high-volume items that you must track less often.
Economic Order Quantity (EOQ)
EOQ is a formula that enables you to calculate the maximum order quantity to reduce total ordering and carrying costs. It’s a more advanced stock management process that requires good information but can save a considerable amount.
What Is a Stock Control System?
A stock control system is the hardware, software, and human resources used within stock control. This can be as simple as a manual spreadsheet for a tiny business or as complex as a sophisticated stock control software solution. The core of any sound system is the ability to accurately track stock, manage orders, and provide data for informed decision-making. Nonetheless, a simple system is better than no system at all.
Choosing the Right Stock Control Software or System for Small Business
In selecting a stock control system for a small business, seek answers to the following listed aspects:
Integration
Does it come with an integration to your e-commerce site (e.g., Shopify, Magento)? Is software integrated into your accounting package?
Scalability
Is it scalable to your business? You do not want to keep upgrading systems yearly.
Features
Does the system/software offer real-time tracking, low stock alerts, and demand forecasting features?
Cost
Pricing is a major decisive factor when investing in a software or system. Seek elastic plans that would grow with your business.
Support
Do you have local support? This is particularly relevant to Australian businesses that require support during local business hours.
Leading providers like Xero, Zoho Inventory, and Cin7 Orderhive are popular. However, many businesses simplify this by outsourcing to a reliable 3PL like iSend.
Real-World Stock Control Examples from eCommerce Businesses
A sound system of stock control is all that is needed. For instance, an Australian gift pack holiday specialist small business can use stock control software to see last season’s holiday selling statistics. From this, it can accurately forecast demand and order the proper packaging and products for the upcoming season, without encountering stockouts or overstock. Given the scale of online retail in Australia, this ability to manage demand is crucial for any business. Online retailing revenue generated in Australia as measured monthly in May 2025 stood at slightly more than 4.49 billion Australian dollars, indicating the large amounts of sales the businesses should be ready to process.
Another stock control example is an Internet and store-based fashion boutique in Sydney. With one integrated stock control system for small businesses, they can simultaneously control stock in both channels in real time. That way, a buyer can’t purchase a dress online when the same one has already been purchased at the store. Smooth convenience is what today’s customer expects.
A Sydney fashion boutique with both online and offline sales benefits from an integrated system that prevents overselling – ensuring smooth order fulfillment across channels.
How iSend Streamlines Stock Control
For most Australian e-commerce stores, dealing with stock, warehousing, and shipping can be a hassle. A third-party logistics (3PL) company like iSend offers a quick solution.
The operations of iSend are designed to simplify stock control for your e-commerce store. They receive, store, and ship your products. iSend offers a personal dashboard for every partner e-commerce business to access multiple carriers and control shipments.
Conclusion
Inventory control is more than a logistical task; it’s a strategic advantage for any e-business. Understanding inventory control and instituting the correct procedures will save money, improve customer satisfaction, and make better business decisions.
Whether you use a manual system, specialised stock control software, or outsource to a 3PL like iSend, gaining command of your inventory is the key to thriving in Australia’s competitive e-commerce landscape.
