TigerDirect’s decision to begin accepting bitcoin payments has sparked “video card madness” at the online electronics dealer, brand manager Steven Leeds told CoinDesk.
“Every single video card has seen a more than 50 percent spike [in sales],” Leeds said.
Rounding out the top four items in terms of sales increases since the company’s 23rd January announcement were power units, tablets and Xbox units. Further, Leeds revealed that TigerDirect’s website has seen a 30% bump in traffic on the news.
The top selling item in the first day was the Sapphire Radeon R9 280X VAPOR-X, of which 30 units were sold. Leeds reported that one buyer bought nearly half – 14 – of these components.
As of press time, the item was out of stock on TigerDirect’s website.
The news that TigerDirect would accept bitcoin was perhaps the biggest announcement on a day that included reveals that Fancy and Naughty America would also add bitcoin to their lists of accepted payment methods.
Leeds attributed the success to the fact that it offers products that more directly appeal to the community, as well as its more measured approach in its launch.
Timing the announcement
The latest in a string of major companies to accept bitcoin via BitPay, Leeds indicated that the decision marked an end to his company’s 10-month search for a partner. Leeds said TigerDirect had initial conversations “with several processing companies”, before selecting the Georgia-based processor.
As for the catalyst for the decision-making, Leeds noted that this is just another example of how TigerDirect not only listens to its community, but acts on its direction.
“The community itself and our customers started asking us to look into it, and we had seen a rise in all the equipment that’s used for mining. So, it was a very logical step for us to start accepting it,” Leeds said.
The brand manager continued, comparing his company’s approach to that of one of its more notable competitors in the space, Overstock.
“As opposed to Overstock, we didn’t just lock 40 engineers in a room for 10 days to be the first ones to come out with it. We really spent our time vetting companies.”
Ensuring long-term success
While TigerDirect’s first-day numbers saw a big boost, Leeds said his team is already looking ahead at how it can continue to engage this customer base.
“We understand the needs of bitcoin miners, and we plan on expanding even further our selection of mining products,” Leeds said.
Leeds went on to tease big upcoming deals for this demographic, suggesting TigerDirect will soon be the first retailer to carry products from certain notable mining companies.
In addition, Leeds said he would look to continue to incentivize bitcoin buyers, saying that TigerDirect has already begun getting involved in the discussion on reddit, Facebook and Twitter, while hinting at big discounts to come.
“With accepting bitcoin, there’s a lot of leeway in terms of what we can offer, it happens to be the more affordable way for us to accept currency.”
Could litecoin follow?
When asked whether TigerDirect would seek out more alternative currencies, Leeds didn’t shy away from his answer stating that the company “wants to make it as easy as possible to shop” at its store, and that bitcoin and litecoin fans are the kind of passionate customers it goes after.
“We are a tech company and everybody in this office is a gamer, a DIYer, a tech nerd. We look to our employees on guidance on what we like to use and what we like to buy.”
Leeds noted specific action would be taken to test the waters with the litecoin community. This community, he said, should look for exclusive units in the coming weeks. Based on reaction, Leeds said TigerDirect would make the best determination for its business when deciding whether to begin accepting litecoin for payments.
Video card image via Flickr