Industry Statistics Sampler
NAICS 42
Wholesale trade

Definition: NAICS 42   Wholesale trade

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.

Historical comparability

Products Lines for Wholesale trade

Product code	Product description	Sales of this line ($000)	Percent of industry sales (%)	Graph
10000	Industry total	4,634,755,	100.00
10100	New and used automobiles, motorcycles, and trailers	398,254,30	8.59
13500	Pharmaceuticals	380,839,72	8.22
15400	Refined petroleum products	253,713,68	5.47
	-Other	3,601,947,	77.72

For more product detail, see the AFF links below for Product Lines

Products, Size, and Other Data from the Economic Census -- Wholesale trade

Link to pdf	Series number	Title	Link to AFF or Drill-down tables	Contents	Geography
	EC02-00C-BDG	Bridge Between NAICS 2002 and NAICS 1997		Relationships between NAICS 1997 and NAICS 2002 for those industries redefined	US
	EC02-00C-COMP	Comparative Statistics		2002 and 1997 data side by side on a comparable NAICS 1997 basis	US, states
	EC02-42SL-LS	Product Lines		All Types of Operation by Kind of Business & Product Line	US, states, metros
	All Types of Operation by Broad Product Line & Kind of Business	US, states, metros
	Merchant Wholesalers by Kind of Business & Product Line	US, states, metros
	Merchant Wholesalers by Broad Product Line & Kind of Business	US, states, metros
	Manufacturers' Sales Branches & Offices by Kind of Business and Product Line	US, states, metros
	Manufacturers' Sales Branches & Offices by Broad Product Line and Kind of Business	US, states, metros
	EC02-42SS-SZ	Establishment and Firm Size		Sales Size of Establishments	US
	Employment Size of Establishments	US
	Single Units & Multiunits	US
	Sales Size of Firms	US
	Employment Size of Firms	US
	Concentration by Largest Firms	US
	Legal Form of Organization	US
	EC02-42SX-SB	Miscellaneous Subjects		Sales by Class of Customer	US
	Employment by Primary Function	US
	End-of-Year Inventories	US
	Detailed Type of Operation	US
	Gross Margin & its Components for Merchant Wholesalers	US
	Gross Profit & its Components	US
	BE02-00I-1	Business Expenses		Sales & Operating Expenses by Kind of Business (2002 NAICS Basis)	US
	Relative Standard Errors for Sales & Operating Expenses by Kind of Business (2002 NAICS Basis)	US
	EC02-42A	Geographic Area Series		Summary Statistics	US, states, counties, metros
	SB02-00A	Survey of Business Owners		Business Ownership by Gender, Hispanic or Latino Origin, and Race	US

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