Due to Sluggish International Sales Overstock.Com Fails to Complete Bitcoin Sales Target for 2014

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Due to Sluggish International Sales Overstock.Com Fails to Complete Bitcoin Sales Target for 2014

As the international sales were not on the expected lines, the international retail giant Overstock.com is reporting that it expects to complete $3m in total Bitcoin sales for 2014 which are below than the expectations. In March, CEO Patrick Byrne had suggested the company was on pace to achieve $10m–$15m, or even $20m, in Bitcoin sales.

When the company decided to embrace the digital currency Patrick Byrne had kept a higher target that could have gone up to $10m–$15m, or even $20m, in Bitcoin sales. Judd Bagley, director of communications and general manager of Overstock’s Cryptocurrencies Group, confirmed, however, that the company had expected a higher figure than $3m.

Talking to media Bagley admitted that while they were still very happy with sales to customers paying with Bitcoin, the numbers didn’t meet the initial expectations. According to the company reports in total, roughly 11,100 customers have so far paid with Bitcoin at both its US and international websites.

This should have not disappointed the company though as this year has been traumatic for Bitcoin investors wherein the prices fell to record levels after reaching to above $1000 in October the last year. This year the Bitcoin prices fell below $300 and for a long time the exchange rate has been below $400.

50% of Bitcoin sales completed by customers who had previously not shopped with it

The decline of Bitcoin has been alarming for a lot of investors and some analysts even call it the worst investment of 2014. When Overstock decided to accept Bitcoin, it became one of the largest merchants to do so. The decision provided widespread publicity for Bitcoin and sparked an uptick in interest among US and international merchants.

However, thanks to sluggish international sales the company was not able to achieve its targets. Though it $3m total earnings from Bitcoin sales, the company has not confirmed how much of it is from international customers. The company stressed that it has seen significant gains, and more importantly, no drawbacks, from its support of the Bitcoin ecosystem.

Overstock informs that 50% of its Bitcoin sales were completed by customers who had previously not shopped with it. Looks the company indeed received Bitcoiners; however, it has also to be kept in mind that though it decided to accept Bitcoin in January, the actual transactions started only in late April.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com