HVACR distributors as a group lag behind other wholesalers when it comes to e-commerce, but online sales are becoming increasingly important as consumer habits change and more buyers, especially younger ones, turn to the internet. That’s one of the key conclusions of a recent report from Heating, Air-conditioning & Refrigeration Distributors International (HARDI).
During the first six months of 2024, U.S. consumers spent a record $550 billion online, a 7.5% increase from 2025, the report said. Wholesale distribution in general saw growth in online sales of about 7% annually between 2018 and 2022, and e-commerce represented nearly a third of all sales by wholesale distributors in 2022, the report said.
However, “the median HARDI distributor participating in the HARDI Annual Benchmarking Survey generates just 4 percent of their sales” via online platforms, the report said. Those distributors doing a greater proportion of sales online — such as Watsco Inc., at which online sales account for more than 30% of all sales — show the potential for growth in HVACR e-commerce.
“Closing the gap between the top and median performers would help HARDI distributors enhance their competitive position, particularly as HVACR contractors grow the percentage of their purchases made through online channels,” the report said. In 2023, the report continues, contractors made 36% of their purchases online, an increase over each of the previous two years.
The e-commerce report, done in cooperation with the business-to-business marketplace LBMX Inc., was authored by Tim Fisher, HARDI’s director of market intelligence, and HARDI research analysts Grace Helser and Jacob Miller.
The experiences of two HVAC distribution companies that do most of their business online support the white paper’s conclusions.
Mike Luongo, president of Total Home Supply, which he helped found in 2010, said the company has seen accelerating growth in the past five or so years.
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“I’m a firm believer in: The online market is going to continue to grow,” said Luongo, an advisory board member at The ACHR NEWS. “People like the ability to sit at their computer and research. And I find the younger generation likes to research things to death. … No matter what it is — and not just HVAC. … Whatever it is they’re going to buy, they look at 87 different websites, read everything they can, or look at videos.”
“The online HVACR market will continue to grow as contractors and homeowners seek convenience, speed, and access to a wide range of products,” said Nando Cunha, COO at SupplyHouse.com, which sells HVAC, plumbing, and electrical equipment. “We expect increased adoption of e-commerce across all trades, along with ongoing demand for educational resources, product transparency, and reliable supply chains.”
A big boost for Total Home Supply was “finally getting some of the manufacturers to accept the fact that the online sales are here to stay,” Luongo said.
Previously, he added, “Once they heard we were online, it would shut down instantly. You know, they were not interested in doing anything with us.”
Loungo added: “It’s taken years to get acceptance.”
Luongo told a story to illustrate his point: Total was selling “tons” of accessories in a particular line, though the manufacturer’s representative had never paid the distributor a visit. “It took probably four or five years for the rep to finally stop in to find out who we were,” Luongo said. “And then, after, you know, finding out who we were, it’s like, ‘Oh, maybe I should show you the other things I’m selling.’“
Both Total Home Supply and SupplyHouse.com do the vast majority of their business online; Total has the occasional walk-in customer, and SupplyHouse.com has a warehouse in each of three states, New Jersey, Texas, and Nevada, where local customers can pick up their orders.
Both distributors sell HVAC products to contracting firms, companies, and individuals. Both also stress to customers that certain items require professional installation.
“For equipment that requires professional installation, we make clear in our product information that it should be handled by licensed contractors — especially when it comes to items with voided warranty due to improper installation,” Cunha said. “We encourage customers to review local codes and hire qualified professionals to ensure proper installation and compliance.”
“In a lot of cases, we will still get a homeowner making a purchase of equipment and then hiring a licensed contractor locally to put it in,” Luongo said. A Total employee looks over every order, he added, and if it doesn’t look like the right linesets were ordered, for example, or if a product designed for commercial use appears to be going to a private home, the company will reach out to the customer before shipping to make sure the customer ordered the right thing.
Both companies also offer customer service.
“While we don’t operate traditional counter-style branches, our customer service team is available by phone, email, and chat to help answer technical questions and provide product guidance,” Cunha said.
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