18 Months after Adopting Bitcoin, TigerDirect Reports Fantastic Experience and Continued Growth
TigerDirect, an online retailer of computers and consumer electronics has been accepting bitcoin for 18 months through BitPay, beginning in January of 2014.
Bitcoin Magazine sat down with Steven Leeds, head of marketing at TigerDirect to learn more about the company’s experience as one of the earliest major merchants to embrace Bitcoin. While recent reports from Expedia suggest that it has seen a decrease in bitcoin payments, TigerDirect shared a different story.
According to Leeds, TigerDirect has been thrilled with its decision to accept bitcoin. Leeds noted that Bitcoin has drawn new users to TigerDirect, with 46 percent of customers purchasing with bitcoin being new users. The company also told Bitcoin Magazine that the average order placed with bitcoin is 30 percent larger than the average order.
Leeds explained that TigerDirect sees the highest volume of bitcoin orders during periods of volatility for bitcoin price. These purchases are typically luxury items such as high-definition TVs, gaming consoles and computer monitors.
“On days when the price is rising, we see users eager to spend some of their newfound wealth. And when the price begins falling, we see others who want to avoid the volatility by spending it on consumer electronics,” said Leeds.
Despite the fall of the bitcoin price into the $200s, TigerDirect has still seen consistent bitcoin transaction volume.
Advantages for Bitcoin Companies
In addition to it’s consumer electronics business, TigerDirect also supplies hardware to many businesses, including a significant number of Bitcoin companies. Some of these companies include miners who use TigerDirect to buy power supplies, cooling systems and other hardware. These miners do not have to convert their bitcoin to cash, as they can pay directly with the bitcoin that they have mined.
TigerDirect was originally introduced to Bitcoin by some of it’s employees who were early adopters and miners of the currency.
“We’d recommend Bitcoin to any company considering it,” Leeds said. “We’ve had a fantastic experience accepting it, and BitPay allows us to integrate the payments into our existing checkout flow easily.”