NAICS Code Lookup




Wholesale Trade


The Sector as a Whole

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 and group purchasing organizations (e.g., purchasing and selling goods on their own account). 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, group purchasing organization (e.g., purchasing or arranging for the purchases of goods owned by others), 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.

NAICS CodesNAICS Description
4231Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers
4232Furniture and Home Furnishing Merchant Wholesalers
4233Lumber and Other Construction Materials Merchant Wholesalers
4234Professional and Commercial Equipment and Supplies Merchant Wholesalers
4235Metal and Mineral (except Petroleum) Merchant Wholesalers
4236Household Appliances and Electrical and Electronic Goods Merchant Wholesalers
4237Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers
4238Machinery, Equipment, and Supplies Merchant Wholesalers
4239Miscellaneous Durable Goods Merchant Wholesalers
4241Paper and Paper Product Merchant Wholesalers
4242Drugs and Druggists' Sundries Merchant Wholesalers
4243Apparel, Piece Goods, and Notions Merchant Wholesalers
4244Grocery and Related Product Merchant Wholesalers
4245Farm Product Raw Material Merchant Wholesalers
4246Chemical and Allied Products Merchant Wholesalers
4247Petroleum and Petroleum Products Merchant Wholesalers
4248Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers
4249Miscellaneous Nondurable Goods Merchant Wholesalers
4251Wholesale Electronic Markets and Agents and Brokers
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