How Loop is leveraging AI to drive impact for merchants
Vaishali Ravi
·April 8, 2025
Artificial intelligence (AI) technology holds immense potential for ecommerce, and we previously walked through a general overview of these technologies to showcase some key use cases.
In this article, we’ll dig into how Loop is using these technologies to develop cutting-edge features that you’ll be able to use to accelerate your growth. You’ll discover how Loop's strategic AI investments are revolutionizing returns management, from intelligent fraud detection and automated decision-making to personalized customer experiences that help brands save more time, reduce costs, and transform returns into a greater revenue-generating opportunity.
AI and data differentiation is part of the foundation of everything we do - enhancing the level and ease of personalization and customization we offer merchants
Here’s a look at the AI-enhanced features we’ve built to deliver a best-in-class experience for our brands and their shoppers:
Workflows - Generative AI
Loop Workflows allow you to customize and personalize your return policy, so it doesn’t have to be one size fits all. Workflows now includes generative AI trained on Loop’s data to drive incremental operational efficiencies. Our new Workflows Assistant introduces Generative AI into the merchant Admin, and helps merchants discover Workflows use cases that make sense for them and build new Workflows. The new feature offers:
- Automation: Our Assistant eliminates the need for merchants to manually setup and build workflows, driving operational efficiency and reducing the margin for error.
- Recommendations: The tool recommends which Workflows are best for particular use cases, reducing the need for trial and error and accelerating the path to success for merchants. Our curated recommendations make it easy for brands to generate value from Workflows faster than ever before.
- Segmentation: Our AI tool offers Workflow Segmentation, making it easier for merchants to know which Workflows to create for each segment (such as new customers v. VIP customers). This segmentation can be added to your CDP for better integration across your tech stack.
Fraud - Machine Learning
Loop’s proactive fraud model leverages a huge data set of fraudulent returns to help merchants identify high-risk returns more efficiently, and focus their time where it will be most valuable. The model launched early in 2024, and was turned on for all merchants at the end of the year. We’re continually working to make the model as efficient as possible.
- Our Fraud Model successfully detects $0.87 of every $1 of confirmed fraudulent transactions.
- With our Flag Returns feature, merchants can manually track and confirm fraudulent returns. On average, merchants flag 3% of all returns as fraudulent. The true positive rate of the flagged returns by dollar is 80%.
Shopper CSAT in the Customer Portal
Loop now captures shopper sentiment in the returns portal. We’re leveraging AI to categorize shopper comments into actionable insights for both Loop and also for our brands. This work is in an early stage, but our vision is to equip merchants with powerful insights—like new carriers or return methods that shoppers are requesting most, where they can streamline processes for faster resolutions, and which shoppers had a positive return experience and are more likely to repurchase.
At the same time, we’ll help merchants identify those who had a negative experience and may need extra attention to rebuild trust. With this holistic view of shopper sentiment, merchants can act faster to retain customers and drive long-term loyalty.
We know that the ecommerce industry is changing quickly, and we’re arming our brands with cutting-edge technologies that will help them stay ahead of the curve. At Loop, we’re committed to helping brands boost operational efficiency, deliver a superior experience for shoppers, and tap into data insights to guide their business strategy. With our suite of next-level technology solutions, we’ll be here to guide your brand towards sustainable growth, no matter what may come next.
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