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Definition
Wholesale Trade
(NAICS 41)
The industries on this site are classified according to the North
American Industry Classification System (NAICS) of 2002. Statistics
Canada maintains this standard classification which has superseded the 1980
Standard Industrial Classification (SIC) previously used.
This section outlines NAICS Canada 2002 with respect to the
Wholesale Trade sector.
It defines the activities specifically excluded, as well as its position in the
NAICS hierarchy.
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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.
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No exclusions are specified in the 2002 NAICS Canada manual.
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Position in NAICS Hierarchy |
Canada's Wholesale Trade (NAICS 41) sector is comprised of the following subsectors :
- Farm Product Wholesaler-Distributors (NAICS 411)
- Petroleum Product Wholesaler-Distributors (NAICS 412)
- Food, Beverage and Tobacco Wholesaler-Distributors (NAICS 413)
- Personal and Household Goods Wholesaler-Distributors (NAICS 414)
- Motor Vehicle and Parts Wholesaler-Distributors (NAICS 415)
- Building Material and Supplies Wholesaler-Distributors (NAICS 416)
- Machinery, Equipment and Supplies Wholesaler-Distributors (NAICS 417)
- Miscellaneous Wholesaler-Distributors (NAICS 418)
- Wholesale Agents and Brokers (NAICS 419)
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