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These industries are established in areas that are mainly engaged in selling all types of products in non-retail means such as catalogs, telephones, or electronic materials such as interactive television or internet. These include companies whose primarily focus is on sales involving catalogue showrooms, electronic shopping and mail order houses. Shopping and mail order web retailers such as Shopify are known for hosting internet retail sites for new and used merchandise on an auction (ebay) basis or non-auction basis. Electronic shopping and mail order have become the default in today's post-covid economy. The same establishment that has brick and mortar clothing store often also has shopping and mail order, electronic shopping and mail store retailing. Establishments primarily engaged in in-person new and used merchandise shopping are categorized under Other Clothing Stores (448190). Naics code 454110 is primarily used for electronic shopping and mail order houses that get most of their revenue from mail order business. Home shopping, any nonstore retailing, physical auction sites and internet retail sales sites also fall into this final level code category. Although they're waning in popularity, mail order houses that primarily use toll free telephone numbers to place orders are also categorized in naics code 454110. A common misclassification is under the naics code for other miscellaneous store retailers or miscellaneous store retailers.

NAICS codes help businesses identify categories for their procurement. If you are looking for employment under NAICS code 111219 but you grow potatoes it becomes an obvious issue for many reasons. If possible, you need an ICS number of 110211 (potato farm). Even if it seems ridiculous, the examples illustrate how vital it is that the code is detailed. There may be code closer to your specialty that you can't find. Classifying business establishments is especially important to federal statistical agencies who gather statistical data in order to segment the business economy for taxes or federal programs. Naics code based segmentation is a key component to the united states government strategy for providing aid to small business. To better classify business industry, the census had to create a standard industrial classification taxonomy, based in common national industry. The self assigned system gives businesses a chance to self label according to a standard industrial classification. Statistical agencies, such as the Census, use naics to track business activity. Other industries that are less common also use naics, but are often misclassified and marginalized because they don't fit into naics. An example of a business that won't fit into naics is cannabis. This is because the total number of cannabis businesses has not met the required amount by the census office, or any other federal office to create an official industry link in the taxonomy. Management at these federal offices often overlooks industries that deal in avant garde industries such as cannabis industries and crypto industries because their business activity is still being understood. Another example of why a business might not fit the naics taxonomy is they are less developed.

Industry classification is a method used to categorize business types into groups based on characteristics and common operations. For example, a business whose operations are primarily characterized by cutting hair might be categorized under "Barber Shop" or even "Beauty Salon".