Resideo’s Digital Shift is Driving Billions – Here’s How

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Resideo Bets Big on Ecommerce – And It’s Paying Off

Resideo Technologies is making ecommerce a core pillar of its growth strategy, with significant gains already visible in its wholesale distribution business, ADI Global Distribution.

ADI’s digital sales reached record highs in 2024, with a 22% year-over-year increase in ecommerce revenue. This momentum is not just driving sales but also boosting profit margins, according to CEO Jay Geldmacher.

“Ecommerce is no longer a side channel—it’s a core part of our growth strategy, and ADI is leading the charge,” Geldmacher said.

Rob Aarnes, president of ADI Global Distribution, emphasized the role of digital investments in this success. “We’ve enhanced our online shopping experience, mobile app functionality, and digital branch infrastructure, creating a seamless omnichannel experience for our customers.”

These efforts contributed to ADI’s $4.6 billion in net sales for the year, an 18% jump from 2023. While organic growth came in at 2%, the shift to digital channels has proven to be a key margin driver.

“Ecommerce is one of the most profitable parts of our business,” Aarnes noted. “Every dollar that moves online improves our mix and strengthens the bottom line.”

Resideo’s overall financial performance also reflected its digital success, with total net revenue reaching $6.76 billion in 2024, an 8% increase. Adjusted EBITDA rose 17% to $693 million, while net income totaled $116 million. The company also set a record with $444 million in operating cash flow.

One of the biggest drivers of this momentum was Resideo’s acquisition of Snap One, a smart living technology company, in mid-2024. The integration has exceeded expectations, delivering $17 million in synergies within just six months—40% above the initial target.

Looking ahead, both Geldmacher and Aarnes are confident in continued growth. “We’re building an ecommerce engine that can scale globally, drive profitable growth, and deliver value to customers every day,” Geldmacher said.

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Amazon Unveils ‘Interests’ – AI-Powered Personalized Shopping

As part of its ongoing AI innovation, Amazon is testing a new feature called Amazon Interests, designed to provide personalized shopping updates based on user preferences.

Interests builds on Amazon’s previous AI-powered tools, such as its Alexa+ features and Rufus shopping assistant, but takes customization further by allowing users to set specific prompts for product recommendations.

“With Interests, you can create personalized shopping prompts tailored to your interests, price limits, and preferences,” said Daniel Lloyd, Amazon’s vice president of personalization. “For example, you might ask for ‘Model building kits for hobbyist engineers’ or ‘The latest pickleball gear and accessories.’”

Once a prompt is set, Interests continuously scans Amazon’s marketplace, proactively notifying users about new products, restocks, and relevant deals. The AI-powered feature processes user inputs using large language models (LLMs) and refines search results to match specific needs.

For now, Interests is available only to select U.S. customers through Amazon’s mobile app and website, with a broader rollout expected in the coming months.

Amazon’s push into AI-driven personalization reflects a broader trend in ecommerce, where companies leverage machine learning to enhance shopping experiences. The company has already introduced agentic shopping capabilities through Alexa+, which allows software to make purchases on behalf of users based on preferences and permissions.

While Interests doesn’t yet feature full agentic shopping, it represents another step in Amazon’s AI strategy. Lloyd emphasized that the company will continue enhancing its shopping experience to make it “more convenient and enjoyable for customers.”