Monday, June 27, 2005

Web-based businesses & NAICS codes

One of the benefits of the NAICS Code classification system is that it classifies the PC- and Internet-based businesses that often defied description in the SIC Code Manual.

I've noticed in WebMQS, however, that there's an attempt to classify e-commerce businesses by the product line being sold, or Web-based services by the service being offered.

The 2002 NAICS code system has removed the guesswork from these situations. Just keep these codes in mind the next time you have a Web-based business client:
  • 454111 - "Electronic Shopping" - For those establishments that retail all types of merchandise using the Internet, regardless of the product being sold.
  • 454112 - "Electronic Auctions" - For businesses akin to eBay.
  • 518111 - "Internet Service Providers" - For businesses that promise Internet access & other services to their customers.
  • 518112 - "Web Search Portals" - For those businesses that maintain informational databases that visitors can tap into. Revenue is generated either by selling either site memberships or advertising (or both). Many of the Web-based databases used by the Research Network would fall under this heading.

2 comments:

Gexton said...

Now I got the meaning of SIC and it's abbreviation, so much thanks.
sic code
Standard Industrial Classification

Mo said...

Very Helpful.

I had a hard time finding an SIC/NAICS code that correctly describes my online business.