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How Nanoleaf Scaled DTC Profitability with Shopify Plus

6/15/2024
Nanoleaf
Gimmy Chu
Nanoleaf
nanoleaf.me
Vancouver, CanadaFounded 2012
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Monthly Revenue
Undisclosed
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Founders
Gimmy Chu
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Employees
94
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Business Description

Nanoleaf is a consumer electronics company founded in 2012 by three engineers. It designs and manufactures innovative LED lighting panels and smart home devices, offering modular light systems that users can configure, control, and automate through apps and smart assistants.
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Executive Summary

Nanoleaf upgraded to Shopify Plus to take control of global trade, localize currency and content, and automate marketing. The shift gave them faster shipping, eliminated hidden duties, and enabled headless storefronts—turning DTC into their most profitable channel.
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Case Study Content

Background

Nanoleaf launched in 2012 with a mission to redefine LED lighting in homes and offices. Their modular panels let customers craft custom light shapes and color patterns. Early growth relied on retail partnerships and third-party distributors, but low margins and hidden fees from customs and currency exchanges often left buyers frustrated.

Challenge

As sales climbed, the Nanoleaf team saw an opportunity to put commerce at the heart of their strategy. They needed a single platform to support multiple currencies, eliminate surprise duties, and speed delivery from warehouses around the world. Their existing solution led to manual data wrangling—spreadsheets in different formats, languages, and time zones—creating bottlenecks in order processing and reporting.

Solution

Nanoleaf upgraded to Shopify Plus to build a truly customer-centric buying flow. With multi-currency checkout and local tax calculations, shoppers paid the exact amount at checkout—no extra fees on delivery. The team tapped into Shopify’s app ecosystem instead of coding every feature from scratch. They also adopted Shopify Flow to automate email marketing and order routing, and they used Hydrogen for custom, media-rich storefronts that highlight product demos and user galleries.

To streamline back-end operations, Nanoleaf integrated Microsoft Dynamics 365 Business Central as their ERP. Orders, inventory, and financial data now sync seamlessly, cutting manual data entry and accelerating fulfillment. The API-driven architecture let them layer custom workflows without a massive dev team, so updates roll out fast and downtime is nearly zero.

Results

Shopify Plus quickly became Nanoleaf’s highest revenue channel. Even after weighing fulfillment costs, the direct-to-consumer offering now outperforms retail partnerships by a wide margin. Key outcomes include:

  • 2X conversion rates after moving to headless storefronts
  • 375% faster page loads
  • 25% quicker shipping thanks to ERP integration
  • Elimination of unexpected duties and foreign-exchange fees

With global templates and multi-language pages, Nanoleaf expanded to the U.S., Europe, Asia, and Australia in record time. Their marketing team spends less effort on routine tasks and more on creative campaigns that drive repeat purchases. Overall, business intelligence processes now run in 82% less time, and item data management is 45% more efficient.

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Key Takeaways

  • 1Upgrading to Shopify Plus gave Nanoleaf multi-currency checkout and local duty calculations, removing hidden fees for buyers.
  • 2Headless commerce with Hydrogen doubled onsite conversions while slashing page load times by 375%.
  • 3Shopify Flow automated email campaigns and order routing, freeing up the team from manual marketing tasks.
  • 4ERP integration with Microsoft Dynamics 365 Business Central cut data processing time by 82% and accelerated shipping by 25%.
  • 5Nanoleaf turned its direct-to-consumer channel into its most profitable revenue stream, surpassing retail margins.
  • 6Localized storefronts and global templates enabled rapid expansion into the U.S., Europe, Asia, and Australia.
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Key Facts

Conversion Rate Increase
2X
Page Load Speed Improvement
375%
Faster Shipping
25%
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Tools & Technologies Used

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Disclaimer: Some data in these case studies may be inaccurate or out of date. In certain cases, AI-generated content is used.