424940 Tobacco Product and Electronic Cigarette Merchant Wholesalers
6-digit U.S. detail
424940

Tobacco Product and Electronic Cigarette Merchant Wholesalers

Description

This industry comprises establishments primarily engaged in the merchant wholesale distribution of tobacco products, such as cigarettes, snuff, cigars, pipe tobacco, and electronic cigarettes (including related parts and accessories).

Hierarchy

CodeTitleDescription
42
Wholesale Trade
2-digit sector
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 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 primarily 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 organizations (acting as agents), 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 manufacturer's 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.
424
Merchant Wholesalers, Nondurable Goods
3-digit subsector
Industries in the Merchant Wholesalers, Nondurable Goods subsector sell nondurable goods to other businesses. Nondurable goods are items generally with a normal life expectancy of less than three years. Nondurable goods merchant wholesale trade establishments are engaged in wholesaling products, such as paper and paper products, chemicals and chemical products, drugs, textiles and textile products, apparel, footwear, groceries, farm products, petroleum and petroleum products, alcoholic beverages, books, magazines, newspapers, flowers and nursery stock, and tobacco products. The detailed industries within the subsector are organized in the classification structure based on the products sold. Agents and brokers primarily engaged in wholesaling nondurable goods, generally on a commission or fee basis, are classified in Subsector 425, Wholesale Trade Agents and Brokers.
4249
Miscellaneous Nondurable Goods Merchant Wholesalers
4-digit industry group
This industry group comprises establishments primarily engaged in the merchant wholesale distribution of nondurable goods, such as farm supplies; books, periodicals, and newspapers; flowers; nursery stock; paints; varnishes; tobacco and tobacco products; and other miscellaneous nondurable goods, such as cut Christmas trees and pet supplies.
42494
Tobacco Product and Electronic Cigarette Merchant Wholesalers
5-digit NAICS industry
See industry description for 424940.
424940
Tobacco Product and Electronic Cigarette Merchant Wholesalers
6-digit U.S. detail
This industry comprises establishments primarily engaged in the merchant wholesale distribution of tobacco products, such as cigarettes, snuff, cigars, pipe tobacco, and electronic cigarettes (including related parts and accessories).

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Classification References

  1. 01Merchant wholesale distribution of leaf tobacco and hemp--are classified in Industry 424590, Other Farm Product Raw Material Merchant Wholesalers; and
  2. 02Merchant wholesale distribution of electronic cigarette vapor liquids--are classified in Industry 424690, Other Chemical and Allied Products Merchant Wholesalers.

Index Items

Chewing tobacco merchant wholesalers

Cigarettes merchant wholesalers

Cigars merchant wholesalers

Electronic cigarettes merchant wholesalers

Pipe tobacco merchant wholesalers

Snuff merchant wholesalers

Tobacco (except leaf) merchant wholesalers

Tobacco products merchant wholesalers

How Item Can Help

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Advanced data analytics provide real-time insights into purchasing trends and supply chain bottlenecks, allowing merchants to adjust procurement strategies based on seasonal shifts in demand for new tobacco and vape product releases.

External Resources

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