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Production Case Study · E-Commerce🔒 NDA Protected

AI Returns and D2C Support Operations Platform

A UK D2C apparel brand generating £76M annually was losing £2.4M across returns processing, support overhead, and inventory overselling. Mirlo Systems deployed an AI support platform, automated returns routing pipeline, and inventory reconciliation system, recovering £2.4M in annual operational cost.

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£2.4MAnnual Cost Reduction
82%Tier-1 Support Deflection
Under 1Weekly Overselling Events
AI Returns Classification Engine — Mirlo Systems
TL;DR

Executive Summary

A UK D2C apparel brand generating £76M annually was losing £2.4M across returns processing, support overhead, and inventory overselling. Mirlo Systems deployed an AI support platform, automated returns routing pipeline, and inventory reconciliation system, recovering £2.4M in annual operational cost. Built in 9 weeks with zero-downtime cutover and AES-256 encrypted pipelines.

01 · Business & Technical Challenge

The Challenge

Operational Friction

A 24% return rate generated 144,000 annual return events with manual warehouse routing. Support volume ran at 1,400 contacts per week (£28 cost/contact = £2M/year support cost). Inventory divergence between Shopify, 3PL, and NetSuite ERP caused 14 weekly overselling events.

Business Risks at Stake

  • Risk of continued margin erosion as 24% return rate processes through inconsistent manual routing
  • Risk of customer trust damage from recurring overselling events across 3 systems
  • Risk of CAC growth outpacing LTV as support friction drives churn
02 · Solution Architecture & Technical Execution

The Solution

Built AI Support Platform across email, chat, and WhatsApp (82% tier-1 deflection). Automated Returns Routing Engine classified items across restock, discount, or write-off tracks. 12-minute inventory reconciliation pipeline eliminated overselling.

Technology Stack

Shopify PlusCustom 3PL API integration for warehouse management and stock position syncNetSuite ERPAnthropic Clauden8n Workflow AutomationSupabase

Engineering Capabilities Delivered

  • AI support grounded on live Shopify order data, carrier tracking APIs, and product catalogue
  • Automated returns routing classifying each item across restock, discount, bundle, or write-off tracks
  • Real-time inventory reconciliation syncing Shopify, 3PL warehouse, and NetSuite ERP on 12-min cycle
  • Overselling prevention alerts triggered when stock position diverges across systems
  • 82% tier-1 support deflection across email, live chat, and WhatsApp

Execution Approach

Discovery and System MappingThree-System Integration BuildPhased Low-Volume CutoverWeekly Anomaly ReviewDedicated Handoff
03 · Business Value & Tangible Results

Measurable Outcomes

Verified Performance Results

  • Annual operational cost reduction: £2.4M across support, returns, and inventory — Finance team 12-month post-deployment cost comparison
  • Tier-1 support deflection rate: 82% of inbound contacts resolved without human — Support platform analytics
  • Cost per resolved support contact: Reduced from £28 to £4.80 — Support cost model
  • Overselling events: Reduced from 14/week to under 1 in first month — Shopify order cancellation log
  • Returns processing throughput: Increased by 34% without additional headcount — Warehouse operations throughput report

Before vs. After

Cost per resolved support contact
Before£28.00
After£4.80
-83%
Weekly overselling events
Before14 average
AfterUnder 1
97% reduction
Tier-1 support contact handling
Before0% automated
After82% automated
+82 percentage points
Returns processing throughput
BeforeBaseline output
After34% increase
No extra headcount
Annual operational cost
Before£2.4M excess
After£0 excess
£2.4M recovered

Qualitative Gains

  • Zero manual administrative friction in routine processing pipelines.
  • Enhanced staff operational capacity redirected to high-value client interactions.
  • Full compliance and security audit trail maintained across all automated pipelines.

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Proof & Validation

Common Questions

Connects to Shopify API, carrier tracking APIs, and returns portal at interaction time for real-time order state.

How is AI support grounded on live order data?
Connects to Shopify API, carrier tracking APIs, and returns portal at interaction time for real-time order state.
How does returns routing pipeline determine item disposition?
Evaluates purchase price, return reason, days since purchase, SKU stock position, and intake condition.
What happens when a query cannot be resolved by AI support?
Escalated to human support team with full transcript and context summary.
How frequently does inventory reconciliation pipeline update?
Runs on a 12-minute cycle comparing Shopify, 3PL WMS, and NetSuite ERP.
What were total systems integrated in this engagement?
5 systems: Shopify Plus, 3PL WMS, NetSuite ERP, carrier tracking APIs, and returns portal.