In a world increasingly shifting to digital, the HVAC industry is not being left behind. Watsco Inc., a leading online distributor of HVAC and refrigeration products, is exemplifying this transition with remarkable growth in its online buyer base and ecommerce sales, serving as a powerful case study for all HVAC business owners to glean insights from.

E-Commerce & Watsco: A Flourishing Affair

Over the past 12 months, Watsco reported a 19% spike in customers with active e-commerce accounts, now boasting about 54,000. This surge is largely credited to the company’s relentless investment in digital technology, ultimately pushing its ecommerce sales up by 15% for the fiscal third quarter ended Sept. 30. To put it into perspective, a whopping $702.9 million of Watsco’s total $2.1 billion sales now comes from ecommerce.

But why such a commitment to digital?

According to Chairman and CEO Albert Nahmad, the company’s digital platforms have significantly augmented customer engagement, carved out a bigger market share, and were pivotal in margin expansion. In raw numbers, since the dawn of 2023 alone, Watsco has injected over 400,000 new SKUs into its digital product catalog, 60% of which pertains to entirely new HVAC systems.

The Power of A Comprehensive Digital Library

Watsco’s product information management (PIM) database is a treasure trove for HVAC professionals, containing a staggering 1.5 million SKUs accessible to over 350,000 contractors and technicians. This database is complemented by the HVAC Pro+ mobile apps, which are instrumental in offering real-time information on:

  • Product specifications
  • Technical support
  • Inventory checks
  • Warranty status and processing
  • E-commerce ordering

Furthermore, the first nine months of this year saw a 31% growth in online gross merchandise sales, reaching $958 million via their OnCallAir digital sales platform, paired with the CreditforComfort consumer-financing service.

Digitalization and Its Strategic Impact

A.J. Nahmad, President of Watsco, emphasized that their overarching digital strategy isn’t just about numbers; it’s about optimization. This strategy empowers the company to meticulously analyze opportunities, refine their capabilities, and assess their achievements across all sectors. The objective? Enhance customer engagement, innovate, and ultimately reduce operational costs.

Albert Nahmad further illuminated the company’s foresight, saying the company’s continually improving financial position will enable more investments in the $50 billion North American HVAC market. He spotlighted the company’s recent acquisition of Gateway Supply Co., an HVAC and plumbing supplies distributor based in South Carolina. This move not only fortifies Watsco’s market presence but adds another e-commerce feather to its cap, given Gateway’s own online store.

The Takeaway for HVAC Business Owners

Digital isn’t just the future; it’s the present. Watsco’s story underscores the paramount importance of embracing digitalization for growth, customer engagement, and efficiency. With 68 businesses acquired since 1989 and a keen eye on digital, Watsco sets the benchmark. For HVAC businesses, the lesson is clear: investing in digital capabilities is no longer optional; it’s a necessity to remain relevant, efficient, and growth-oriented in today’s fast-paced world.

TL;DR: Watsco Inc., a major HVAC distributor, has seen a 19% boost in active e-commerce accounts, resulting in a 15% rise in ecommerce sales for Q3. This digital push, which includes a vast online product library and mobile apps for professionals, emphasizes the company’s commitment to optimizing customer engagement and operational efficiency. Watsco’s digital strides highlight the urgent need for HVAC businesses to invest in digitalization as a key driver for modern success.


Digital Commerce 360