Ops & AI: The Intelligent Commerce Engine That Puts Margin Back in Motion
Automation‑by‑rules can’t keep up with shifting costs, split shipments, and tariff shocks. The StateSet iCommerce Engine replaces guesswork with margin‑aware orchestration across orders, shipping, returns, and CX.
Dominic Steil
TL;DR
Automation‑by‑rules can’t keep up with shifting costs, split shipments, and tariff shocks. The StateSet Intelligent Commerce Engine (iCommerce Engine) replaces guesswork with margin‑aware orchestration: every order, shipment, return, and CX interaction is decided by real contribution margin in real time. Typical gains in 60–90 days: +5–12 pts GM, –8–15% shipping $/order, 50–80% ticket deflection with no extra headcount.
Why ops broke and why “more rules” didn’t fix it
In the last 12 months, brands rebuilt supply chains, moved DCs onshore, and absorbed new tariffs. Consequences:
- Carrier surcharges and zone creep quietly erased margin.
- Split shipments spiked as inventory scattered.
- Refund‑heavy returns hit cash and retention.
- CX volume climbed while tools stayed reactive and manual.
Rules engines weren’t designed for moving targets. You can’t hard‑code a stable answer to dynamic costs. You need a system that thinks in dollars and adapts.
Meet the StateSet iCommerce Engine
The iCommerce Engine is a real‑time commerce operating system. AI Agents watch every transaction and route decisions to maximize contribution margin, then learn from outcomes.
What it does for Order Margin
- Knows true cost per order: COGS, duty/tariff, pick/pack, carrier base + fuel, and expected return risk.
- Makes better choices at the edge: Block loss‑making combos, suggest cheaper methods, apply regional surcharges, route to the most profitable DC.
- Turns refunds into revenue: Exchange‑first flows, label‑less returns, and reason‑code loops for supplier recovery.
- Automates customer ops: AI Agents resolve status, returns/exchanges, subscription edits, and warranties across email, chat, voice, and social.
The margin‑aware core
Under the hood, the iCommerce Engine computes contribution margin by line and by order.
Inputs it unifies
- Orders + line items (SKU)
- Shipping lines & actual carrier bills
- Item Master: SKU, Country of Origin (COO), HTS/duty, cost
- 3PL/DC pick–pack & storage
- Channel fees and promo rules
Decisions it drives
- Checkout guardrails: If below floor, suggest cheaper method, bundle to raise AOV, apply transparent Tariff & Handling, or re‑route.
- Fulfillment routing: Choose the DC/method that wins on dollars, not just distance, while meeting the SLA.
- Split‑shipment prevention: Block/discourage carts that create unprofitable multi‑node shipments.
- Pricing & promo control: Enforce floor pricing by region; only allow discounts if margin stays above target.
- Returns & warranty: Default to exchange‑first; tag reasons and attach costs for supplier recovery.
What it looks like
Margin Overview
- Contribution margin by order with real/estimated ship costs
- RAG lists for SKUs and Ship Method × Zone
- SKU Heatmap (profit by region × channel)
Ops Guardrails
- Toggle “Use actual shipping when available” to reconcile estimates
- Edit pick/pack, carrier factor, and fuel parameters
- One‑click suggestions: method swap, surcharge, bundle, route to profitable DC, avoid split
Fulfillment Router
- Evaluates candidate DC/method pairs with the same margin function
- Selects the highest‑margin path that meets the SLA
Returns & Warranty Automation
- Exchange‑first defaults and policy controls aligned to real costs
- Supplier feedback loop: defect tags roll up to HTS/COO notes
CX Automation
- Autoresolves 50–80% of status, returns/exchanges, subscription edits, and warranties
- Escalates edge cases with full customer and order context
Case patterns we commonly see
- Turn off 3–5 chronic loss‑making methods in specific zones → +2–4 pts GM in a week.
- Add transparent Tariff & Handling where needed → low conversion impact, meaningful GM recovery.
- Kill top 10 split‑shipment patterns with “ship together & save” nudges → –8–15% shipping $/order.
- Flip returns to exchange‑first → 15–30% refund recovery.
- Re‑route 10–20% of orders to a different DC purely on margin with no SLA hit.
Architecture at a glance
Data plane
Shopify orders; Item Master; shipments/carrier bills; 3PL/DC events; CX systems
Margin Engine
Per‑line computations → per‑order contribution; RAG scoring; guardrail triggers
Decision plane
Router; returns/warranty policy; pricing/promo enforcement; CX and Sales Concierge AI Agents
Learning loop
Compare estimates vs. actuals; adjust parameters (fuel, carrier factor, pick–pack) and policies (surcharges, method eligibility, DC no‑fly)
30/60/90 roll‑in
Days 1–10: Diagnose
- Connect Shopify & your 3PL to the StateSet iCommerce Engine
- Load 90 days of orders/shipments/returns
- Baseline the Profit Map (SKUs, ship methods × zones, DC lanes)
- Turn on read‑only guardrail recommendations
Days 10–30: Stabilize
- Enable guardrails (method swap, surcharge, bundle, split‑shipment prevention)
- Switch on margin‑aware routing
Days 30–90: Optimize
- Regional pricing & contribution‑aware promos
- Inventory rebalancing simulator; implement DC no‑fly rules
- Carrier & 3PL audit packets; renegotiate on your actuals
- CX deflection goal: 50–80% autoresolved
What changes for your team
- Finance: Live contribution model (no more month‑late post‑mortems).
- Ops: Routing and policy that always reference costs.
- CX: Fewer tickets, more exchanges.
- Marketing: Guardrails that prevent promo‑driven margin burn.
- Execs: GM% by SKU/region/channel with order‑level drill‑downs.
The mindset shift
Stop asking, “What’s our policy?” Start asking, “What’s the margin?” When your operations system can answer that instantly, it can act intelligently.
If margins dipped during tariff resets and warehouse moves, the fastest path back isn’t more staff or more rules — it’s the StateSet iCommerce Engine that thinks in dollars. We’ll wire your stack, baseline the Profit Map, and switch on guardrails and routing; then show you, order by order, where the money returns.