AfterShip launches AI tool for post-purchase retail

AfterShip has launched AfterShip Intelligence, an artificial intelligence product for post-purchase tracking, returns and shipping. Early users include Dr. Squatch and Naked Wardrobe.

The launch adds automated exception handling, return review and delivery prediction to AfterShip's existing post-purchase software, used by more than 20,000 brands. The system is built on data collected since 2012 across more than 11 billion shipments, about 110 billion delivery checkpoints and more than 1,400 carriers.

AfterShip is positioning the product around a part of online retail that often sits outside the spotlight, even though it shapes customer service costs and repeat purchases. Tracking updates, delivery problems and returns can influence revenue retention as much as support workloads.

At the centre of the launch is AfterShip Agent, which AfterShip describes as its first AI agent for post-purchase operations. It starts with two uses: exception handling for shipment issues and return merchandise authorisation review.

According to AfterShip, the agent identifies shipment problems, gathers order context, recommends a response and can carry out tasks that would otherwise require staff to move between several systems. Any financial or customer-facing decision still requires human approval.

Results from initial users form a key part of the launch. Dr. Squatch used the product for exception handling and predictive delivery, while Naked Wardrobe deployed it for return reviews.

Dr. Squatch said it reduced exception resolution time by more than 58% after using AfterShip Agent. The brand also said its most frequent "where is my order" tickets fell by 25%, while positive sentiment in agent-initiated conversations rose by 42%.

Dr. Squatch also adopted AfterShip's delivery prediction tools in less time than it took with its previous provider, according to AfterShip. The company said the brand reached 94% on-time estimated delivery accuracy across 99.98% of orders.

Naked Wardrobe reported faster handling of returns. The retailer said return reviews that had taken five to 10 minutes are now about 40% faster, with risk assessment and customer history shown in the same workflow.

AfterShip said the agent can also identify which return merchandise authorisations are safe to approve automatically. At Naked Wardrobe, that has allowed 15% to 20% of RMAs to be resolved without manual review.

Post-purchase focus

The launch comes as technology suppliers push AI deeper into retail workflows beyond search, marketing and product discovery. AfterShip is targeting the operational work that begins after checkout, including failed deliveries, customer queries and refund decisions.

The broader product set also includes proactive warnings on at-risk orders before standard tracking signals appear, personalised product recommendations and exchange suggestions aimed at preserving sales that might otherwise end in refunds.

Merchants will also be able to use the software through application programming interfaces, Model Context Protocol servers and connectors to other AI tools, including Shopify Sidekick, Claude and ChatGPT. That reflects a broader shift in software towards linking specialist retail tools to general AI assistants already used by support and operations teams.

Teddy Chan, Founder and Chief Executive Officer at AfterShip, said the company sees post-purchase as an underused part of retail operations. "For years, post-purchase has been treated as a cost center, but it's one of the most valuable moments in the customer journey," Chan said.

"As customer acquisition gets more expensive, brands can't afford to treat tracking and returns as back-office operations. We built AfterShip Intelligence to automate the work that slows teams down, predict issues before customers feel them, and give operators AI they can trust because they stay in control," he said.

Dr. Squatch linked the software to efficiency gains in customer support. "As AI continues to reshape how brands operate, we see a real opportunity to apply that intelligence to the moments that happen after a purchase," said Joan Park, Senior Customer Experience Analyst at Dr. Squatch.

"AfterShip Intelligence gives our team the context and automation to resolve delivery issues more efficiently, while keeping our focus on delivering a great customer experience. It's an important step toward making post-purchase a more intelligent part of the customer journey," Park said.

Naked Wardrobe said the product helps its team focus on more complex cases. "Returns are an important part of the customer experience, and we want our team spending its time where human judgment adds the most value," said Jackie Avila, Head of Customer Service at Naked Wardrobe.

"AfterShip Intelligence features help us automate the straightforward decisions while giving our team the context they need when a return requires a closer look. As AI becomes a bigger part of retail operations, this is the kind of practical automation that can make a meaningful difference for both teams and customers," Avila said.