Business Model:
Van Otis’ operates both a brick and mortar business as well as an ecommerce business.  Their business model is considered to be a merchant model.  By definition, a merchant model business is made up of wholesalers and retailers that sell goods and or services (Rappa, 2005).  Van Otis’ chocolates fits within this category because they are retailers that sell goods, chocolates and other candies in their case.   

In addition to the merchant business model, there are 4 different types that go to further categorize the business type.  There are Virtual markets, which are businesses that only operate on the web.  Catalog merchants that combine both online and telephone ordering to conduct their business.  A bit vendor is similar to a virtual market, but the products they offer are only digital products (i.e. iTunes).  The last category of merchant models is the click and mortar category.  Click and mortar businesses have both a store front and an ecommerce presence (Rappa, 2005).  Van Otis Chocolates falls under the click and mortar business model.  Customers can purchase or order products either at their store front location or on their website.  From the website and the store you are able to order their famous chocolate champagne covered bottles, order their Swiss fudge chocolate fountain, and even build your own gift basket and much more.  Van Otis began this business model in 1999 when they first started to implement their idea to recreate their candy store on the web. 

Some companies have trouble keeping consistency between their ecommerce site and their brick and mortar store front.  Many times customers will find something that they want on the website, and then take that information to the store front to try and purchase it (Stuart, 2005).  Van Otis does a great job at trying to make sure their website and their store front offer all of the same products to help satisfy the consumer’s needs.

It is very difficult for a business to become a click and mortar business at first (Engelfreit, 2005).  Many people don’t want to use the web because they are used to the store front experience, but Van Otis does an excellent job recreating that experience on their website. 

References:

Engelfreit, A.  (2005).  Ecommerce business models.  Retrieved December 8,2005, from http://www.iusmentis.com/business/ecommerce/businessmodels/

Rappa, M.  (2005).  Managing the digital enterprise.  Business models on the web.  Retrieved November 20, 2005, from http://digitalenterprise.org/models/models.html#Merchant

Stuart, A.  (2005).  CIO.  Clicks and bricks.  Retrieved December 8, 2005, from http://www.cio.com/archive/031500/click.html

In the News

- Union Leader -
Van Otis Chocolates: divinely decadent
by John Clayton

- Union Leader -
'Food Finds' in New Hampshire
by Gary Dennis

-168 Mag -
Think Van Otis for Valentines Day
by Leah Gladu

Things to Read

- Ius Mentis -
E-commerce Business Models
by Arnoud Engelfreit

Managing the Digital Enterprise
Business Models
by Michael Rappa

CIO
Click and Bricks
by A. Stuart

ServerWorld
Keeping content in check:
A technical and financial look at outsourcing Web development
by Jay Boyle

Last Updated: December 21, 2005