Variant of NAICS 2007 - Labour Force Survey (LFS) Industries

7 - Services-Producing Sector

8 - Trade

41 - Wholesale Trade

This sector comprises establishments primarily engaged in wholesaling merchandise and providing related logistics, marketing and support services. The wholesaling process is generally an intermediate step in the distribution of merchandise; many wholesalers are therefore organized to sell merchandise in large quantities to retailers, and business and institutional clients. However, some wholesalers, in particular those that supply non-consumer capital goods, sell merchandise in single units to final users.

This sector recognizes two main types of wholesalers, that is, wholesale merchants and wholesale agents and brokers.

Wholesale Merchants

Wholesale merchants buy and sell merchandise on their own account, that is, they take title to the goods they sell. They generally operate from warehouse or office locations and they may ship from their own inventory or arrange for the shipment of goods directly from the supplier to the client. In addition to the sale of goods, they may provide, or arrange for the provision of, logistics, marketing and support services, such as packaging and labelling, inventory management, shipping, handling of warranty claims, in-store or co-op promotions, and product training. Dealers of machinery and equipment, such as dealers of farm machinery and heavy-duty trucks, also fall within this category.

Wholesale merchants are known by a variety of trade designations depending on their relationship with suppliers or customers, or the distribution method they employ. Examples include wholesale merchants, wholesale distributors, drop shippers, rack-jobbers, import-export merchants, buying groups, dealer-owned cooperatives and banner wholesalers.

The first eight subsectors of wholesale trade comprise wholesale merchants. The grouping of these establishments into industry groups and industries is based on the merchandise line or lines supplied by the wholesaler.

Wholesale Agents and Brokers

Wholesale agents and brokers buy and sell merchandise owned by others on a fee or commission basis. They do not take title to the goods they buy or sell, and they generally operate at or from an office location.

Wholesale agents and brokers are known by a variety of trade designations including import-export agents, wholesale commission agents, wholesale brokers, and manufacturer's representatives and agents.

419 - Wholesale Electronic Markets, and Agents and Brokers

This subsector comprises establishments primarily engaged in buying and/or selling products, owned by others, and generally receiving a fee or a commission for the service. These establishments may be known as business-to-business electronic markets, commission merchants, import agents or brokers, export agents or brokers, manufacturers' agents, purchasing agents, selling agents, and they may deal in any type of product. These establishments bring together sellers and buyers or undertake commercial transactions on behalf of a principal, without taking title of the goods bought or sold.

• Exclusion(s):

  Establishments primarily engaged in:

  • bringing together buyers and sellers of goods using the Internet in a business-to-consumer or consumer-to-consumer environment (See 45411 Electronic Shopping and Mail-Order Houses)
  • buying and selling goods on own account using a combination of electronic and traditional methods (classified according to the merchandise line or lines sold by the merchant wholesaler-distributor)
  • buying and selling insurance, on a commission basis (See 52421 Insurance Agencies and Brokerages)
  • buying and selling real estate, on a commission basis (See 53121 Offices of Real Estate Agents and Brokers)
  • operating as shipping agents (See 48851 Freight Transportation Arrangement)
  • trading commodities and commodity futures, which are usually listed on a commodity exchange (See 5231 Securities and Commodity Contracts Intermediation and Brokerage)

4191 - Wholesale Electronic Markets, and Agents and Brokers

This industry group comprises establishments primarily engaged in buying and/or selling products, owned by others, and generally receiving a fee or a commission for the service. These establishments may be known as business-to-business electronic markets, commission merchants, import agents or brokers, export agents or brokers, manufacturers' agents, purchasing agents, selling agents, and they may deal in any type of product. These establishments bring together sellers and buyers or undertake commercial transactions on behalf of a principal, without taking title of the goods bought or sold.

41911 - Business-to-Business Electronic Markets

This industry comprises business-to-business wholesale electronic markets bringing together buyers and sellers of goods using the Internet or other electronic means and generally receiving a commission or fee for the service. Business-to-business wholesale electronic markets facilitate wholesale transactions without taking title of the goods bought or sold. Establishments primarily engaged in facilitating business-to-business sales of new and used merchandise on an auction basis using the Internet are also included.

• Exclusion(s):

  Establishments primarily engaged in:

  • acting as merchant wholesalers and bringing together buyers and sellers of goods using the Internet or a combination of electronic and traditional methods (classified according to the merchandise line or lines sold by the merchant wholesaler-distributor)
  • bringing together buyers and sellers of goods using the Internet in a business-to-consumer or consumer-to-consumer environment (See 45411 Electronic Shopping and Mail-Order Houses)

41912 - Wholesale Trade Agents and Brokers

This industry comprises establishments primarily engaged in buying and/or selling products, owned by others, on a commission basis. These establishments may be known as commission merchants, import agents or brokers, export agents or brokers, manufacturers' agents, purchasing agents, selling agents, and they may deal in any type of product. These establishments usually bring sellers and buyers together or undertake commercial transactions on behalf of a principal, without taking title of the goods bought or sold.

• Exclusion(s):

  Establishments primarily engaged in:

  • acting as agents and brokers and wholesaling products, owned by others, using the Internet or other electronic means (See 41911 Business-to-Business Electronic Markets)
  • buying and selling insurance, on a commission basis (See 52421 Insurance Agencies and Brokerages)
  • buying and selling real estate for others, on a fee or commission basis (See 53121 Offices of Real Estate Agents and Brokers)
  • shipping agents (See 48851 Freight Transportation Arrangement)
  • trading commodities and commodity futures, which are usually listed on a commodity exchange (See 5231 Securities and Commodity Contracts Intermediation and Brokerage)
  • wholesaling merchandise on own account, merchant wholesaler-distributors (classified according to the merchandise line or lines sold by the merchant wholesaler-distributor)