Juphy’s Weekly E-Commerce News Express – 10-14 February 2025
Ceyda Duz
This week, we’re exploring how AI is transforming returns management, enhancing shopping experiences, and bridging the gap between digital and physical retail. We’ll also cover the latest updates from Simon, Shopify, Loop, Global-e, and TikTok. Join us as we dive into the innovations reshaping the e-commerce landscape and shaping the future of the industry—keep reading for all the details!
AI is Revolutionizing E-Commerce Returns
Handling returns remains one of the biggest challenges in e-commerce, driving up costs and straining logistics. With 10% of all online purchases being returned—totaling 4 billion parcels annually—most retailers still rely on manual, inefficient processes. AI is now stepping in to streamline returns, cut costs, and improve sustainability.
Optimizing Returns with AI
One of the biggest inefficiencies in returns is the manual processing of items back to warehouses for inspection, reconditioning, and resale. AI helps retailers collect detailed return data—such as images, videos, and purchase history—at the moment of return, enabling instant decision-making. Instead of relying on customer service agents, AI-powered systems can determine whether an item should be resold, refurbished, or liquidated, significantly reducing handling costs.
AI also optimizes return routing, minimizing unnecessary transportation and processing steps. In cases where physical inspections are necessary, AI assists warehouse operators in sorting and assessing items, cutting processing time from months to days and reducing handling costs by 20% or more.
Turning Returns Into Revenue
Beyond making returns more efficient, AI is also helping retailers turn returns into revenue opportunities. Traditionally, returned products were either discarded or heavily discounted, leading to financial losses. AI-powered systems can assess the condition of returned goods, apply dynamic pricing based on demand, and determine the most profitable resale channel. Some retailers are even bypassing warehouses altogether—reselling returned items directly to the next customer without additional processing costs.
The Future of AI-Driven Returns
With AI-driven automation, returns management is becoming faster, more cost-effective, and more sustainable. As more companies invest in AI-powered reverse logistics, the goal is to eliminate unnecessary handling entirely, reducing waste while maximizing resale value. Retailers that embrace AI-driven returns processing will not only cut costs but also gain a competitive edge in an increasingly efficiency-focused market.
AI Reshapes Shopping: How Consumers Discover, Shop, and Switch Brands
Artificial intelligence is redefining global shopping behaviors, according to Capgemini Research Institute’s latest trends report, What Matters to Today’s Consumer 2025. Based on a survey of 12,000 shoppers across multiple countries, the report highlights AI’s growing influence on product discovery, shopping decisions, and brand loyalty.
Product Discovery: AI Takes Over Search
- Generative AI as the New Search Engine: More than 60% of Gen Z, Millennials, and Gen X consumers now prefer AI-driven recommendations over traditional search engines.
- Smarter Recommendations: Consumers are using AI assistants to curate product suggestions, compare items across platforms, and even offer styling advice for fashion and home décor.
- Social Media’s Influence: Platforms like TikTok and Instagram continue to drive purchasing decisions, with 32% of shoppers buying directly through social media and 68% of Gen Z discovering new brands this way.
Shopping: AI-Powered Personalization & Speed
- Retail Media Gains Attention: While 67% of shoppers notice ads on retailer websites, only 35% find them useful, signaling the need for more AI-driven personalization.
- Price Sensitivity Persists: Even as economic conditions improve, shoppers remain price-conscious, with 65% opting for private-label brands and 64% visiting multiple stores for better deals.
- Demand for Speed: Quick commerce is on the rise—two-thirds of consumers value 2-hour or even 10-minute deliveries, while 42% prioritize buy-online, pick-up-in-store options.
Brand Loyalty: The AI-Powered Retention Challenge
Consumer loyalty is becoming harder to maintain. The report suggests that brands must:
- Leverage AI for hyper-personalized experiences to keep customers engaged.
- Use automation to optimize pricing and remain competitive.
- Tap into social and retail media networks to stay visible and relevant.
As AI continues to shape the e-commerce landscape, retailers that integrate AI-driven discovery, personalized shopping experiences, and seamless logistics will be best positioned to capture—and retain—modern consumers.
Simon & Shopify Bring E-Commerce In-Store
Mall operator Simon has joined forces with Shopify and retail platform Leap to make it easier for e-commerce brands to establish a brick-and-mortar presence. This collaboration provides digital brands with the tools and resources needed to open physical stores faster—whether within Simon’s shopping centers or other locations. As consumer shopping habits evolve, Simon continues to support brands looking to bridge the gap between online and offline retail. By partnering with Shopify and Leap, the company is helping e-commerce businesses seamlessly expand into physical spaces, reaching new customers and creating more immersive shopping experiences.
Loop and Global-e Simplify Cross-Border Returns
Loop has partnered with Global-e to offer Shopify merchants a seamless solution for managing international returns. The integration consolidates returns processing into a single system, making it easier to handle duties, taxes, and compliance requirements. By reducing administrative complexities and improving logistics, this collaboration helps merchants streamline operations, enhance customer experience, and tap into new revenue opportunities in global markets.
TikTok Tests Subscriptions for Shop
TikTok is experimenting with a subscription-based shopping feature, enabling users to schedule repeat purchases at a discount. This model benefits both shoppers looking for convenience and sellers aiming for steady, recurring revenue. Although not yet available to all merchants, the feature could strengthen TikTok Shop’s growing e-commerce ecosystem, complementing its existing logistics, fulfillment services, and seller tools.
How Juphy AI Enhances Returns with Smart Order Tracking
Juphy AI improves the returns process by offering smart order tracking that keeps customers informed every step of the way. Through real-time updates, your Shopify customers can keep up with the status of their orders, estimated delivery times, and potential delays.
This communication helps manage expectations, reducing frustration and minimizing return requests due to late or lost shipments. Juphy’s AI Agent also assists customers by quickly addressing tracking-related inquiries, ensuring they feel supported throughout the entire journey.
Want to streamline your order tracking and reduce returns? Try Juphy today and enhance your customer experience with a seamless AI-powered solution: apps.shopify.com/juphy
Key Takeaways
AI is Revolutionizing E-Commerce Returns: AI is reshaping the returns process by optimizing both efficiency and cost management. By automating the decision-making process on returns, AI helps businesses instantly assess the condition of items and determine whether they should be resold, refurbished, or liquidated. This AI-powered system reduces manual work and improves return routing.
AI Reshapes Shopping: AI is transforming consumer behavior across discovery, shopping, and brand loyalty. AI product recommendations have replaced traditional search engines, with over 60% of Gen Z, Millennials, and Gen X consumers preferring AI-curated suggestions. The rise of social commerce and AI-powered personalization is also changing how consumers shop.
Simon & Shopify Bring E-Commerce In-Store: Simon, Shopify, and Leap have joined forces to help digital-first brands expand into physical retail spaces more efficiently. By providing tools and resources for establishing brick-and-mortar stores, this collaboration bridges the gap between online and offline retail, enabling brands to reach new customers.
Loop & Global-e Simplify Cross-Border Returns: Loop has teamed up with Global-e to streamline the process of managing international returns for Shopify merchants. This integration consolidates returns handling, making it easier for businesses to manage duties, taxes, and compliance while offering a seamless returns experience for customers.
TikTok Tests Subscriptions for Shop: TikTok is experimenting with a new subscription-based shopping feature, offering users the ability to schedule repeat purchases at discounted rates. This feature benefits both consumers who seek convenience and merchants who gain a steady stream of recurring revenue.
