Roger Ver, a prominent figure in
the Bitcoin community known for his involvement with Memory Dealers and various
marketing efforts promoting Bitcoin, has announced the launch of a new Bitcoin
business: an all-purpose electronics store called the Bitcoin Store. This
online store already offers thousands of products, ranging from inexpensive USB
keys to high-end servers. While there are other Bitcoin electronics stores in
existence, what sets the Bitcoin Store apart is its commitment to offering
lower prices than its competitors.
Ver provides examples of the
price difference between the Bitcoin Store and other popular platforms. For
instance, a 60-inch TV costs $1,397.99 on Amazon and $1,437.99 on NewEgg, but
the Bitcoin Store sells it for only $1,367.48. Similarly, a laptop priced at
$2,266.66 on Amazon and $2,317.00 on NewEgg is available on the Bitcoin Store
for $1985.51. Even a laser printer, which costs $202.01 on Amazon and $204.99
on NewEgg, is priced at $175.66 on the Bitcoin Store. The key to achieving
these lower prices lies in the Bitcoin Store’s partnership with the world’s
largest wholesale technology distributor and its acceptance of Bitcoin only,
which helps avoid traditional merchant fees.
Ver acknowledges the challenge of
maintaining good relationships with distributors while maintaining sufficient
sales volume on Bitcoinstore.com. His existing store, Memory Dealers, with an
annual sales volume of over $10 million USD, provided the leverage needed to
secure the partnership. Ver hopes that Bitcoinstore.com can generate enough
volume to satisfy distributors and continue offering competitive prices.
Currently, the Bitcoin Store
charges a fixed shipping fee of $4.99 USD for orders within the United States,
with exceptions for orders above $100. Internationally, shipping fees vary
based on destination and weight. Even with the shipping fee, the Bitcoin Store
often offers more affordable domestic shipping compared to Amazon and NewEgg.
Ver aims to eventually offer free shipping within the USA, but this will
require higher sales volume. There is also a possibility of reducing shipping
costs to $1.99, but this depends on the store’s success.
While still in beta, the Bitcoin
Store has a $1,000 minimum purchase requirement. The user interface is being
finalized, and international shipping costs are currently high, but these
issues will be resolved as the site progresses. The team assures potential
customers that the minimum purchase requirement will be removed soon, and
cheaper international shipping options will be introduced.
With its competitive prices, the
Bitcoin Store presents an opportunity for increased Bitcoin adoption in the
near-to-medium term. The low prices make it even worthwhile for users to pay
the 5% fee to buy Bitcoin from BitInstant to shop at the store, expanding the
potential audience beyond existing Bitcoin holders. The main challenge for the
Bitcoin Store, like any other Bitcoin business, will be marketing. Ver and Jon
Holmquist, part of the Bitcoin Store team, are already promoting the site
within the Bitcoin community and on social media channels. However, a more
robust and coordinated marketing effort will be necessary to achieve the
desired sales volume. If successful, the Bitcoin Store has the potential to
significantly impact Bitcoin adoption and growth
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