The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing.
The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (i.e., goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production.
Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up orders are either vendor-initiated or client-initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers. In fact, transactions are often conducted between wholesalers and clients that have long-standing business relationships.
This sector comprises two main types of wholesalers: merchant wholesalers that sell goods on their own account and business to business electronic markets, agents, and brokers that arrange sales and purchases for others generally for a commission or fee.
(1) Establishments that sell goods on their own account are known as wholesale merchants, distributors, jobbers, drop shippers, and import/export merchants. Also included as wholesale merchants are sales offices and sales branches (but not retail stores) maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products. Merchant wholesale establishments typically maintain their own warehouse, where they receive and handle goods for their customers. Goods are generally sold without transformation, but may include integral functions, such as sorting, packaging, labeling, and other marketing services.
(2) Establishments arranging for the purchase or sale of goods owned by others or purchasing goods, generally on a commission basis are known as business to business electronic markets, agents and brokers, commission merchants, import/export agents and brokers, auction companies, and manufacturers' representatives. These establishments operate from offices and generally do not own or handle the goods they sell.
Some wholesale establishments may be connected with a single manufacturer and promote and sell the particular manufacturers' products to a wide range of other wholesalers or retailers. Other wholesalers may be connected to a retail chain, or limited number of retail chains, and only provide a variety of products needed by that particular retail operation(s). These wholesalers may obtain the products from a wide range of manufacturers. Still other wholesalers may not take title to the goods, but act as agents and brokers for a commission.
Although, in general, wholesaling normally denotes sales in large volumes, durable nonconsumer goods may be sold in single units. Sales of capital or durable nonconsumer goods used in the production of goods and services, such as farm machinery, medium and heavy duty trucks, and industrial machinery, are always included in wholesale trade.
Wholesale Trade has a two-digit code of 42. Its subcategories are as follows:
| 2002 NAICS Code |
2002 NAICS Title |
| 423110 | Automobile and Other Motor Vehicle Merchant Wholesalers |
| 423120 | Motor Vehicle Supplies and New Parts Merchant Wholesalers |
| 423130 | Tire and Tube Merchant Wholesalers |
| 423140 | Motor Vehicle Parts (Used) Merchant Wholesalers |
| 423210 | Furniture Merchant Wholesalers |
| 423220 | Home Furnishing Merchant Wholesalers |
| 423310 | Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers |
| 423320 | Brick, Stone, and Related Construction Material Merchant Wholesalers |
| 423330 | Roofing, Siding, and Insulation Material Merchant Wholesalers |
| 423390 | Other Construction Material Merchant Wholesalers |
| 423410 | Photographic Equipment and Supplies Merchant Wholesalers |
| 423420 | Office Equipment Merchant Wholesalers |
| 423430 | Computer and Computer Peripheral Equipment and Software Merchant Wholesalers |
| 423440 | Other Commercial Equipment Merchant Wholesalers |
| 423450 | Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers |
| 423460 | Ophthalmic Goods Merchant Wholesalers |
| 423490 | Other Professional Equipment and Supplies Merchant Wholesalers |
| 423510 | Metal Service Centers and Other Metal Merchant Wholesalers |
| 423520 | Coal and Other Mineral and Ore Merchant Wholesalers |
| 423610 | Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers |
| 423620 | Electrical and Electronic Appliance, Television, and Radio Set Merchant Wholesalers |
| 423690 | Other Electronic Parts and Equipment Merchant Wholesalers |
| 423710 | Hardware Merchant Wholesalers |
| 423720 | Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers |
| 423730 | Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers |
| 423740 | Refrigeration Equipment and Supplies Merchant Wholesalers |
| 423810 | Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers |
| 423820 | Farm and Garden Machinery and Equipment Merchant Wholesalers |
| 423830 | Industrial Machinery and Equipment Merchant Wholesalers |
| 423840 | Industrial Supplies Merchant Wholesalers |
| 423850 | Service Establishment Equipment and Supplies Merchant Wholesalers |
| 423860 | Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers |
| 423910 | Sporting and Recreational Goods and Supplies Merchant Wholesalers |
| 423920 | Toy and Hobby Goods and Supplies Merchant Wholesalers |
| 423930 | Recyclable Material Merchant Wholesalers |
| 423940 | Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers |
| 423990 | Other Miscellaneous Durable Goods Merchant Wholesalers |
| 424110 | Printing and Writing Paper Merchant Wholesalers |
| 424120 | Stationery and Office Supplies Merchant Wholesalers |
| 424130 | Industrial and Personal Service Paper Merchant Wholesalers |
| 424210 | Drugs and Druggists' Sundries Merchant Wholesalers |
| 424310 | Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers |
| 424320 | Men's and Boys' Clothing and Furnishings Merchant Wholesalers |
| 424330 | Women's, Children's, and Infants' Clothing and Accessories Merchant Wholesalers |
| 424340 | Footwear Merchant Wholesalers |
| 424410 | General Line Grocery Merchant Wholesalers |
| 424420 | Packaged Frozen Food Merchant Wholesalers |
| 424430 | Dairy Product (except Dried or Canned) Merchant Wholesalers |
| 424440 | Poultry and Poultry Product Merchant Wholesalers |
| 424450 | Confectionery Merchant Wholesalers |
| 424460 | Fish and Seafood Merchant Wholesalers |
| 424470 | Meat and Meat Product Merchant Wholesalers |
| 424480 | Fresh Fruit and Vegetable Merchant Wholesalers |
| 424490 | Other Grocery and Related Products Merchant Wholesalers |
| 424510 | Grain and Field Bean Merchant Wholesalers |
| 424520 | Livestock Merchant Wholesalers |
| 424590 | Other Farm Product Raw Material Merchant Wholesalers |
| 424610 | Plastics Materials and Basic Forms and Shapes Merchant Wholesalers |
| 424690 | Other Chemical and Allied Products Merchant Wholesalers |
| 424710 | Petroleum Bulk Stations and Terminals |
| 424720 | Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) |
| 424810 | Beer and Ale Merchant Wholesalers |
| 424820 | Wine and Distilled Alcoholic Beverage Merchant Wholesalers |
| 424910 | Farm Supplies Merchant Wholesalers |
| 424920 | Book, Periodical, and Newspaper Merchant Wholesalers |
| 424930 | Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers |
| 424940 | Tobacco and Tobacco Product Merchant Wholesalers |
| 424950 | Paint, Varnish, and Supplies Merchant Wholesalers |
| 424990 | Other Miscellaneous Nondurable Goods Merchant Wholesalers |
| 425110 | Business to Business Electronic Markets |
| 425120 | Wholesale Trade Agents and Brokers |
Information courtesy of the U.S. Census Bureau.
