Such a big surprise for those, who doubted Bitcoin as a mean of payment: Tiger Direct reached the $1 Million mark in total sales via bitcoins on March 13th, 2014. Tiger Direct is an online tech retailer that began accepting the cryptocurrency less than two months ago on 23th of January. This decision was partnered with based in Georgia merchant processor called BitPay.
Marketing director at Tiger Direct, Steven Leeds, said to CoinDesk that they are pleased with this successful decision and the response from customers is very overwhelming.
This solution also increased sales of the company and Leeds admits that customers have benefitted from the arrangement as well. The reason is in the fact that using digital currencies helps to save money on transaction fees in compare to other forms of online means of payment, e. g. credit cards.
Tiger Direct became Overstocks’ second merchant that had passed the $1 million milestone.
It was pretty logical step for Tiger Direct to start to accept Bitcoin, because Bitcoin and altcoin miners such as litecoin and dogecoin buy needed components from TigerDirect as well as from Amazon and Newegg. But at the moment these two companies do not planning to start using digital currencies as an alternative payment mean.
Tiger Direct sales of some products increased for 50% after the announcement of bitcoin acceptance. Among the top selling items there were video cards and power units (items popular among miners), tablets, Xbox units and other high-tech items.
This result proves the projections of Tiger Direct, that bitcoin resonates with its predominantly high-tech customer base. And it took only 50 days for Tiger Direct to reach such a tremendous index.
The success of this tech retailer can persuade other merchants to accept bitcoin payments, given that it has now proven to be a large and consistent revenue stream for two major merchants.
US merchant Lord & Taylor’s parent company Hudson Bay Co. have confessed that they consider testing bitcoin, as it was mentioned earlier this week.
The biggest Bitcoin merchant processors continue to add retailers to their lists and to exceed rate. By the way, BitPay indicates approximately 1,000 merchants per week.