Wholesale Trade Agents and Brokers
Description
This industry comprises wholesale trade agents and brokers acting on behalf of buyers or sellers in the wholesale distribution of goods, including those that use the Internet or other electronic means to bring together buyers and sellers. Agents and brokers do not take title to the goods being sold but rather receive a commission or fee for their service. Agents and brokers for all durable and nondurable goods are included in this industry. Illustrative Examples: Independent sales representatives Manufacturers' sales representatives Group purchasing organizations (acting as agents for goods distribution)
Hierarchy
| Code | Title | Description |
|---|---|---|
| 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. |
| 425 | Wholesale Trade Agents and Brokers 3-digit subsector | The Wholesale Trade Agents and Brokers subsector groups establishments that arrange for the sale of goods owned by others, generally on a fee or commission basis. They act on behalf of the buyers and sellers of goods to facilitate wholesale trade. |
| 4251 | Wholesale Trade Agents and Brokers 4-digit industry group | The Wholesale Trade Agents and Brokers subsector groups establishments that arrange for the sale of goods owned by others, generally on a fee or commission basis. They act on behalf of the buyers and sellers of goods to facilitate wholesale trade. |
| 42512 | Wholesale Trade Agents and Brokers 5-digit NAICS industry | See industry description for 425120. |
| 425120 | Wholesale Trade Agents and Brokers 6-digit U.S. detail | This industry comprises wholesale trade agents and brokers acting on behalf of buyers or sellers in the wholesale distribution of goods, including those that use the Internet or other electronic means to bring together buyers and sellers. Agents and brokers do not take title to the goods being sold but rather receive a commission or fee for their service. Agents and brokers for all durable and nondurable goods are included in this industry. Illustrative Examples: Independent sales representatives Manufacturers' sales representatives Group purchasing organizations (acting as agents for goods distribution) |
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Classification References
- 01Group purchasing organizations purchasing and selling goods on their own account are classified in Subsector 423, Merchant Wholesalers, Durable Goods, or Subsector 424, Merchant Wholesalers, Nondurable Goods; and
- 02Group purchasing organizations acting as agents for services are classified in Industry 561990, All Other Support Services.
Index Items
Agents and brokers, durable goods, wholesale trade
Agents and brokers, nondurable goods, wholesale trade
Automobile auction agents and brokers, wholesale trade
Business to business electronic markets, durable goods, wholesale trade
Business to business electronic markets, nondurable goods, wholesale trade
Durable goods agents and brokers, wholesale trade
Durable goods business to business electronic markets, wholesale trade
Electronic markets, durable goods, business to business, wholesale trade
Electronic markets, nondurable goods, business to business, wholesale trade
Group purchasing organizations (acting as agents for goods distribution)
Nondurable goods agents and brokers, wholesale trade
Nondurable goods business to business electronic markets, wholesale trade
Petroleum brokers
How Item Can Help
Optimizes warehouse operations for bulk inventory management and rapid order picking of diverse product lines while maintaining high stock accuracy across multiple sites.
Streamlines complex order fulfillment processes by centralizing requests from various wholesale clients and automating routing rules for faster delivery to distributors.
Provides actionable insights into market trends and demand forecasting, allowing agents to identify high-value opportunities and negotiate better terms with suppliers based on real-time analysis.
External Resources
Census.gov NAICS Detail
Official US Census Bureau definition and scope for NAICS 425120.
National Association of Wholesale Trade Associations and Brokers
Trade association dedicated to connecting wholesalers, agents, and brokers with clients and suppliers.
U.S. Census Bureau Economic Census Data
Government resource providing downloadable statistical data specifically for NAICS code 425120.
D&B Hoovers Industry Directory
Directory listing hundreds of registered wholesale agents and brokers across various industries.
