Why HVAC Distributors Must Prioritize Digital Maturity

The HVAC distribution industry is evolving. Preliminary findings from our recent contractor survey where we asked contractors about their eCommerce usage (reserve your company by clicking here) revealed that they are online, to varying degrees, and are researching products, gathering spec sheets, and buying online (but maybe not from you!)

This is driven by shifting contractor expectations, supply chain challenges, access to information, the need for immediacy, generational change, and the rise of eCommerce throughout our daily lives.

The research shows that HVAC contractors are increasingly desiring self-service digital experiences, real-time inventory access, and seamless ordering from mobile devices.

Despite these industry changes, many HVAC distributors still rely on outdated systems, manual order processing, and legacy inventory management processes, limiting their ability to scale and meet customer expectations. Further, industry consolidation is enabling larger companies to invest more in digital applications, further setting customer expectations of all distributors (especially given that contractors purchase from multiple distributors, so they are exposed to your competitor’s digital offerings!)

A study from BigCommerce titled Digital Maturity Report highlights that B2B sellers with integrated digital strategies experience faster growth, improved operational efficiency, and stronger customer retention.

Paul Dabrowski, BigCommerce’s B2B Global Sales Manager, recently shared BigCommerce’s The Complete Guide to B2B Digital Maturity. This guide explores digital maturity stages in B2B environments (i.e., “the distribution channel” as it can relate to distributors and manufacturers), focusing on eCommerce advantages and how to evolve toward full digital transformation.

So, given the guide, and utilizing some HVAC industry persona projections, I’ve summarized the findings. Whether you are a distributor or manufacturer, I encourage you to download the guide to benchmark your organization and to ask, “where are we and how do we get there?”

Digital Maturity Stages and the Role of eCommerce

1. The Luddite (Level 0) – No Digital Presence

Example: A small HVAC distributor taking orders via phone and email, using paper invoices, and manually tracking inventory or using an “older” ERP system (maybe even QuickBooks!).

🔹 Challenges:

• Slow order fulfillment due to manual processes and also limited to its staff’s productivity.
• No digital customer engagement or online presence to support existing customers.
• Difficulty scaling operations beyond a local market, if desired.

✔ How eCommerce Helps:

• Launch a basic online storefront showcasing available HVAC products.
• Automate invoicing and order tracking to reduce manual errors.
• Provide online account access for customers to view past orders and request quotes.

2. The Laggard (Level 1) – Limited Online Capabilities

Example: A distributor has a website but no online ordering, forcing contractors to call or email for purchases.

🔹 Challenges:

• Contractors are increasingly preferring self-service ordering, but it’s not available. And if they are not seeking to order, they desire pricing and inventory availability functionality to do estimating and planning on their schedule … or maybe just need spec sheets for a submittal.
• Sales reps spend too much time processing orders instead of building relationships.
• No real-time inventory visibility leads to stock discrepancies.

✔ How eCommerce Helps:

• Implement a full-featured B2B eCommerce system with online ordering.
• Enable real-time inventory tracking to prevent backorders and delays.
• Free up sales teams to focus on strategic accounts rather than data entry.

3. The Follower (Level 2) – Experimenting with Digital Tools

Example: The distributor has an eCommerce site but lacks mobile optimization, real-time data integration, or customer-specific pricing customization for contractors.

🔹 Challenges:

• Customers struggle with a clunky online ordering process.
• Pricing isn’t tailored for different customer segments.
• The website doesn’t integrate with ERP or CRM systems, leading to disconnected data.

✔ How eCommerce Helps:

• Upgrade to a mobile-friendly platform, allowing HVAC technicians to order from job sites.
• Enable customer-specific pricing and bulk discounts through account-based login.
• Integrate ERP, CRM, and inventory management for a seamless digital experience.

4. The Middle Ground (Level 3) – Functional but Siloed Digital Strategy

Example: The distributor has an eCommerce system and CRM but lacks advanced features like automated reordering or AI-driven product recommendations.

🔹 Challenges:

• Sales channels operate separately, leading to inconsistent experiences.
• Customer data exists, but insights aren’t fully leveraged for sales.
• Customer support still depends heavily on manual interactions.

✔ How eCommerce Helps:

• Implement AI-driven search and recommendations, allowing contractors to find the right HVAC parts faster.
• Introduce subscription-based ordering for commonly used items, which could be an offering if you pursued the residential DIY market.
• Offer real-time customer support via chatbots and automated help centers.

5. The Leader (Level 4) – Data-Driven Digital Growth

Example: The distributor has a well-integrated digital ecosystem but is looking for new ways to optimize operations.

🔹 Challenges:

• Scaling operations requires further automation.
• Competitors are starting to replicate digital efforts.
• Customer expectations are constantly evolving.

✔ How eCommerce Helps:

• Expand into marketplaces to reach new customers. This could be selling via Amazon, Walmart Marketplace, and others as you syndicate your content and pricing, generating incremental business. There are also other third-party marketplaces emerging that are serving the property management market (if you are interested in some, email me.)
• Leverage predictive analytics to anticipate demand fluctuations.
• Optimize fulfillment and logistics through AI-powered inventory forecasting.

6. The Visionary (Level 5) – Full Digital Integration

Example: The distributor is an industry leader in eCommerce, using AI, machine learning, and IoT to drive efficiency.

🔹 Challenges:

• Staying ahead in an already optimized operation.
• Constantly improving personalization and automation.

✔ How eCommerce Helps:

• Use IoT-enabled inventory tracking for real-time monitoring of HVAC parts and equipment.
• Create hyper-personalized experiences using AI-driven recommendations.
• Expand into direct-to-contractor sales models, offering one-click reordering and same-day delivery options.

Key Benefits of eCommerce for HVAC Distributors

1. Faster Ordering & Convenience – Contractors can place orders 24/7 from job sites.
2. Real-Time Inventory Visibility – Prevents stock shortages and improves supply chain planning.
3. Customer-Specific Pricing & Discounts – Automates tiered pricing based on contractor volume.
4. Reduced Sales Team Workload – Sales reps focus on relationships, not data entry.
5. Integrated Data & Reporting – Provides actionable insights for decision-making.
6. Scalability & Competitive Advantage – Positions the distributor as a trusted digital partner.

To meet these demands, distributors must invest in flexible, scalable eCommerce solutions that streamline operations and enhance contractor relationships.

Next Steps

Customer expectations are changing, and the competitive environment is becoming more digital. Will it “flip” tomorrow? No, especially because there are so many contractors being served by the channel and there are many nuances. Further, distributors add much more value than solely an ordering process.

But there are customers that want digital to be an option to streamline their repetitive processes.

Distributors that fail to modernize will lose ground to competitors with eCommerce-driven sales strategies, and this is what national chains, larger regionals, and PE-owned firms are counting on. It will take time, but the pace is accelerating. The question becomes, is your company preparing for “tomorrow” or content to stay in today, maybe yesterday, and potentially withering?

📌 Next Steps:

• Assess your digital maturity level and identify gaps.
• Invest in a B2B eCommerce platform that integrates with ERP and CRM systems.
• Prioritize mobile accessibility, AI-driven search, and automated reordering.
• Regularly update your eCommerce system to align with industry trends.

By embracing digital transformation, HVAC distributors can enhance efficiency, improve customer satisfaction, and future-proof their business. For a detailed roadmap to digital maturity, refer to the BigCommerce Digital Maturity Report and also go to www.ecommerce4distributors.com to reserve your copy of the upcoming State of Contractor eCommerce Usage report, which will be released in the near future.