Generally, the wholesale trade industry consists of two types of firms. First, there are the wholesale merchants who are primarily engaged in buying merchandise for resale to retailers, other businesses, trade contractors, and other wholesalers. Other business may include industrial, commercial, institutional, farm or professional firms. Second, there are firms that act as agents and brokers in the buying or selling merchandise on a commission basis.

Wholesalers are a key link between manufacturers and the marketplace. They anticipate customer needs and demands, buy merchandise, carry inventory, assemble shipments, deliver merchandise, extend credit, provide knowledge on various aspects of marketing products in Canada and abroad, and provide consultation services.

Trading Houses are independent companies staffed by international trade experts. They are business intermediaries between Canadian manufacturers and foreign buyers of goods and services. Trading houses export, import and engage in third-country trading of goods services produced by other companies. They are classified as wholesalers for statistical purposes. In order to estimate statistics for the trading house industry, a trading house is defined as a wholesale merchant whose revenue from exports exceeds 50% of their total operating revenue.