NAICS Code 455219-18 - Direct Selling Establishments (Retail)

Marketing Level - NAICS 8-Digit

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NAICS Code 455219-18 Description (8-Digit)

Direct Selling Establishments (Retail) are businesses that sell products directly to consumers through independent sales representatives, rather than through a traditional retail storefront. These establishments typically offer a wide range of products, including cosmetics, home goods, and health supplements. Direct selling establishments may operate as part of a larger network or as independent businesses. They often rely on personal relationships and word-of-mouth marketing to generate sales.

Hierarchy Navigation for NAICS Code 455219-18

Tools

Tools commonly used in the Direct Selling Establishments (Retail) industry for day-to-day tasks and operations.

  • Sales kits
  • Product catalogs
  • Online ordering systems
  • Customer relationship management software
  • Social media platforms for marketing and sales
  • Training materials for sales representatives
  • Incentive programs for sales representatives
  • Mobile payment systems for transactions
  • Inventory management software
  • Shipping and logistics software

Industry Examples of Direct Selling Establishments (Retail)

Common products and services typical of NAICS Code 455219-18, illustrating the main business activities and contributions to the market.

  • Cosmetics sales
  • Home goods sales
  • Health supplement sales
  • Jewelry sales
  • Clothing sales
  • Kitchenware sales
  • Educational toy sales
  • Personal care product sales
  • Cleaning product sales
  • Food and beverage sales

Certifications, Compliance and Licenses for NAICS Code 455219-18 - Direct Selling Establishments (Retail)

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

  • Direct Selling Association Membership: The Direct Selling Association (DSA) is a national trade association for companies that market products and services directly to consumers through an independent sales force. Membership in the DSA is voluntary and requires adherence to a strict code of ethics. The DSA provides resources and support to its members, including legal and regulatory guidance, industry research, and networking opportunities.
  • Better Business Bureau Accreditation: The Better Business Bureau (BBB) is a nonprofit organization that sets and upholds high standards for ethical business behavior. Accreditation by the BBB signifies that a business has met these standards and is committed to resolving customer complaints in a timely and satisfactory manner.
  • Sales Tax Permit: Direct selling establishments are required to collect and remit sales tax on the products they sell. A sales tax permit is required to do so and must be obtained from the state in which the business operates.
  • Business License: A business license is required to operate any type of business in the United States. The specific requirements for obtaining a business license vary by state and locality.
  • Federal Trade Commission Compliance: The Federal Trade Commission (FTC) is responsible for enforcing federal consumer protection laws, including those that apply to direct selling. Direct selling establishments must comply with the FTC's Business Opportunity Rule, which requires them to provide certain disclosures to potential salespeople.

History

A concise historical narrative of NAICS Code 455219-18 covering global milestones and recent developments within the United States.

  • Direct Selling Establishments (Retail) have a long history dating back to the late 1800s when door-to-door salesmen sold products such as books, brushes, and cleaning supplies. In the 1920s, the industry saw a significant shift with the introduction of the party plan sales model, where a host would invite friends and family to a party where a sales representative would demonstrate and sell products. The industry continued to evolve with the introduction of multi-level marketing in the 1940s, which allowed sales representatives to recruit and train other representatives to sell products. In recent years, the industry has seen a surge in popularity with the rise of social media and e-commerce, allowing sales representatives to reach a wider audience and sell products online. In the United States, Direct Selling Establishments (Retail) have a rich history dating back to the 1800s when traveling salesmen sold products such as medicine and cleaning supplies. The industry saw a significant shift in the 1920s with the introduction of the party plan sales model, which allowed sales representatives to sell products in a social setting. In the 1950s, the industry saw another shift with the introduction of multi-level marketing, which allowed sales representatives to recruit and train other representatives to sell products. In recent years, the industry has seen a surge in popularity with the rise of social media and e-commerce, allowing sales representatives to reach a wider audience and sell products online.

Future Outlook for Direct Selling Establishments (Retail)

The anticipated future trajectory of the NAICS 455219-18 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

  • Growth Prediction: Stable

    The future outlook for Direct Selling Establishments (Retail) in the USA is positive. The industry is expected to grow in the coming years due to the increasing popularity of online shopping and the convenience it offers to consumers. The COVID-19 pandemic has also accelerated the shift towards online shopping, which has benefited the industry. Additionally, the industry is expected to benefit from the growing trend of consumers seeking out unique and personalized products, which can be found through direct selling establishments. However, the industry may face challenges from increased competition from online retailers and changing consumer preferences. Overall, the industry is expected to continue to grow in the coming years.

Industry Innovations for NAICS Code 455219-18

Recent groundbreaking advancements and milestones in the Direct Selling Establishments (Retail) industry, reflecting notable innovations that have reshaped its landscape.

  • Social Media Marketing: Direct selling establishments are increasingly using social media platforms to market their products and reach a wider audience.
  • Personalized Products: Many direct selling establishments are offering personalized products to meet the growing demand for unique and customized products.
  • Online Sales: Direct selling establishments are increasingly selling their products online, which has helped to increase their reach and sales.
  • Mobile Apps: Some direct selling establishments have developed mobile apps to make it easier for customers to browse and purchase products.
  • Sustainability: Many direct selling establishments are focusing on sustainability and offering eco-friendly products to meet the growing demand for environmentally conscious products.

NAICS Code 455219-18 - Direct Selling Establishments (Retail)

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