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Case Study

Case Study: How a Brooklyn Retailer Automated Inventory with AI

Inside DUMBO Boutique Studio's AI-driven inventory and support rebuild — the stack, the savings, the lessons.

AI AutoMationNY TeamAug 02, 20265 min read

DUMBO Boutique Studio is a growing online retailer based in Brooklyn, NY. They sell across Shopify, Instagram, and email — and they were drowning in manual inventory management and customer support.

The challenge: they couldn't keep up with inventory across multiple channels, and customer support response times were 4+ hours — too slow for retail. They were losing sales to stockouts and slow replies.

The Solution

We deployed a 3-part AI automation stack: an AI chatbot for instant product Q&A (trained on their product catalog + brand voice), a demand forecasting model that pre-orders based on seasonality, and a unified inbox that auto-tags and routes conversations.

The Results

Increased average order value by 15%, cut first-response time from 4 hours to under 60 seconds, and reduced stockouts by 70%. The team now ships 3x more campaigns with the same headcount.

The Stack

Shopify (e-commerce), GPT-4 (chatbot), Make.com (workflow automation), Klaviyo (email), and a custom demand forecasting model built on their 12 months of sales data.

Lessons for Other NYC Retailers

Start with customer support automation — it has the fastest ROI and the highest customer satisfaction impact. Then layer inventory automation. Finally, add demand forecasting once you have 12+ months of clean sales data.

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