E-commerce
October 1, 2026
Are you wondering how an e-commerce brand can bounce back after a deep crisis? Beardbrand, a men's grooming company, went through a very difficult period, with a reduced team and significant cash losses. Yet, it managed to reinvent itself by adopting new acquisition strategies, diversifying its sales channels, and optimizing its inventory management. This turnaround is a source of inspiration for any merchant looking to stabilize their business and prepare for sustainable growth.
The road to recovery is not linear: it requires constant adjustments, measured trials, and a clear vision of one's priorities. Beardbrand notably focused on Facebook with a controlled-cost approach, launched on Amazon to offset the decline of another channel, and redesigned its offer to increase the average order value. These choices, sometimes counter-intuitive, allowed the brand to regain financial balance.
So, how did Beardbrand bounce back after a crisis? On the agenda:
Why was the Facebook strategy changed?
What role did Amazon play in the recovery?
How to manage inventory without tying up all of your cash?
What lessons can you draw for your own brand?
Here we go.
Summary
Why did Beardbrand experience a crisis in 2023?
Beardbrand, a men's grooming brand, went through a very difficult period in mid-2023. The company had to furlough its team for a month, a sign of significant financial strain. This crisis came after a period of growth, but costs rose and sales slowed, putting cash flow under pressure.
The founder, Eric Bandholz, explained that the situation was close to the worst. The company was burning through cash quickly, and they had to act fast to avoid bankruptcy. This experience shows that even established brands can be fragile in the face of market changes.
For merchants, this story is a reminder of the importance of monitoring finances and reacting quickly. A crisis can be an opportunity to rethink priorities and find more sustainable solutions.
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What Facebook Ads strategy was adopted to relaunch growth?
Beardbrand changed its approach to Facebook Ads, moving from a multiple testing method to a "bid caps" strategy. This technique, learned from Andrew Faris, consists of setting a maximum amount one is willing to pay for a conversion, allowing for better cost control.
This change was implemented in early October, and the results have been positive: the cost per acquisition has become aligned with expectations for profitable growth. However, with a limited budget, the number of daily conversions remains low. Beardbrand continues to learn how to master this method and create content that performs well on Facebook.
For e-merchants, this approach shows the importance of testing new tactics, but on a small scale, so as not to put the business at risk. It is also necessary to accept that learning takes time.
Why launch on Amazon to compensate for the loss of a channel?
Beardbrand launched on Amazon in January, with the goal of replacing the sales volume generated on Target. Within three months, Amazon reached a steady pace, but the platform also brought its share of challenges: shipping errors, customer review issues, and complex management.
Despite these difficulties, Amazon now represents an important channel, approaching a seven-figure annual run rate, which is half of the set goal. This diversification has helped reduce dependence on a single channel and stabilize revenue.
For brands, this demonstrates the value of not putting all your eggs in one basket. Testing new channels, even if imperfect, can offer significant growth opportunities.
How did Beardbrand manage its cash flow after the crisis?
After losing a lot of cash, Beardbrand managed to stabilize its cash flows. The founder no longer loses sleep over it, but he remains cautious: he is not putting much money aside and prefers to keep a lean structure.
The strategy is simple: be "heavy on cash, light on inventory" (a lot of cash, little stock). This means ordering smaller quantities, accepting being out of stock on certain products, and avoiding tying up all of one's capital in inventory that doesn't sell.
This approach allows for staying flexible and seizing opportunities, but it carries a risk: not having enough products to sell. Beardbrand chooses to prioritize best-sellers and delay orders for slow-moving products.
What role do promotions and incentives play in the recovery?
Beardbrand has always wanted to avoid discounting, but this inflexibility slowed its growth. The brand therefore decided to explore promotional offers to attract new customers and retain subscribers. The result: the subscriber list nearly doubled, and the average order value increased.
To achieve this, Beardbrand raised its prices and launched a bundle program. Rather than a percentage discount, the brand offers free products, which motivated customers more. This strategy helped increase the average order value, even though the conversion rate decreased.
Lesson for merchants: promotions are not inherently bad, but they must be designed intelligently to increase customer value, not just volume.
Why did the conversion rate decrease despite higher prices?
By increasing its prices and launching bundles, Beardbrand saw its conversion rate decrease. This is a classic effect: higher prices discourage some buyers, but those who do buy spend more. Overall net revenue decreased, but the company is no longer losing money.
This drop in conversion also has benefits: fewer orders mean less work for the team, fewer customer service tickets, and better operations management. Beardbrand chose to target a clientele willing to pay more for a quality experience.
For e-merchants, this shows that one should not always seek to maximize the conversion rate. Sometimes, aiming for a higher average order value is more profitable, even with fewer customers.
How did Beardbrand use bundles to increase the average order value?
Beardbrand compared two types of offers: a tiered percentage discount (the more you spend, the greater the discount) and free products offered. The free products had a much stronger impact on customers, who responded more to this incentive.
This strategy increased the average order value while creating a sense of added value. Customers perceive the bundle as a generous offer, even though the cost to the company is similar to a discount.
For merchants, this shows the importance of testing different promotional formulas. Bundles can be an excellent way to increase the average cart value without devaluing the brand.
What is the importance of diversifying sales channels?
Beardbrand learned not to depend on a single channel. After losing Target's volume, the brand turned to Amazon, and more recently to TikTok Shop, even though this platform is still buggy. This diversification helped offset declines on other channels.
The founder emphasizes that one must constantly try new tactics, but on a small scale, so as not to put the business at risk. Each channel has its peculiarities, and you have to learn to master them gradually.
For e-merchants, this is a reminder of the importance of not putting all your eggs in one basket. Testing new channels, even imperfect ones, can offer significant growth opportunities.
How did Beardbrand approach the holiday season with Decembeard?
For the holidays, Beardbrand launched a promotion called "Decembeard": a daily gift during the first 10 days of December. Customers participate by placing an order, and one in 10 shoppers wins a $25 gift card. Starting December 10, the reward increases to $250 for one in 100 winners.
This campaign aims to boost sales during the key period, while creating a sense of excitement and community. It is an original way to encourage purchases without resorting to massive discounts.
For merchants, this shows that it is possible to create engaging promotions without slashing product prices. Contests and giveaways can be more effective than a simple price reduction.
What is the mindset needed to overcome a crisis?
Beardbrand is currently at financial break-even, but this is not what the founder expected after 11 years of activity. He had to accept that the business is essentially "new" and must be run like a startup. What worked in 2012 no longer works today.
He emphasizes the importance of focusing on wins, even small ones, as they have a cumulative effect. Every improvement, such as a higher average cart value, contributes to the overall health of the business.
For struggling entrepreneurs, he reminds them that perseverance is key: "It’s not fun, but you have to keep moving forward, finding opportunities, and building the business you want."
How does Qstomy help brands optimize their trade-in strategy?
Qstomy, the Shopify AI agent, supports e-commerce brands in their growth by optimizing each step of the customer journey. Thanks to personalized recommendations, upsell and cross-sell suggestions, and intelligent package tracking, Qstomy helps increase the average cart value and build customer loyalty, just as Beardbrand did with its bundles.
During recovery periods, it is crucial to maximize the value of each order. Qstomy makes it possible to offer complementary products at the right time, automate abandoned cart reminders, and provide responsive customer service via chat. These features reduce the team's workload and improve the shopping experience.
With over 100 merchants supported, Qstomy is a reliable partner for brands that want to scale sustainably, even after a crisis.
What checklist should you use to bounce back after an e-commerce crisis?
To bounce back after a crisis, here is a checklist inspired by the Beardbrand experience:
Audit finances: identify critical expense areas and reduce non-essential costs.
Diversify channels: test new platforms (Amazon, TikTok Shop) on a small scale.
Optimize inventory: prioritize cash and order smaller quantities.
Rethink offers: increase prices and create bundles to increase the average order value.
Use tools like Qstomy: automate upselling, package tracking, and customer service to gain efficiency.
In brief
Beardbrand overcame its crisis by adopting a profitable growth strategy, diversifying its channels, and rethinking its offering. For merchants, the key is to remain flexible, test new approaches, and rely on powerful tools like Qstomy to maximize every opportunity.
FAQ
How to increase average order value without discounting? Offer bundles with free products rather than percentage discounts.
Which channel to prioritize after a crisis? Test several channels on a small scale, such as Amazon or TikTok Shop, and measure the results.
How to avoid running out of stock? Prioritize best-sellers and accept stockouts on slow-moving products.
To go further: What e-commerce strategy for a small brand under $100,000/month? - Qstomy, How to build a Facebook Ads e-commerce strategy? - Qstomy, What e-commerce marketing strategy without an advertising budget? - Qstomy, SEO e-commerce strategy for category pages - Qstomy, How to create a payment gateway for an e-commerce site? - Qstomy, SEO strategy for all brands: calibrating stage, budget, and priorities - Qstomy, Complete guide to e-commerce: strategy, growth, and profitability - Qstomy.
Enzo
October 1, 2026
