How to Sell Handmade Soap: 13 Tips to Boost Sales When Running a Business

Handmade soap has become one of the most sought-after craft products in Vietnam in recent years. According to Google Trends data, interest in natural soaps and personalized handmade products has steadily increased every year, especially among small business owners and online sellers.

However, making handmade soap is not enough – selling it is the real challenge. Many people struggle with where to start: where to sell, how to price, and how to get their first customers without incurring too many costs.

This article will help you understand how to sell handmade soap systematically, from business mindset and customer outreach to practical steps to turn your soap-making hobby into a sustainable income stream. Whether you've only made a few bars of soap or are looking to develop it into a small business model, the guidelines below will help you get started on the right foot.

Starting a profitable handmade soap business

1. Plan costs and understand legal regulations

• Clearly define your initial budget for raw materials, soap-making tools, packaging, and product promotion.

• Prioritize essential expenses to avoid overspending when starting out.

• Research local regulations related to manufacturing and selling handmade soap, including business registration, product labeling, and cosmetic safety, to avoid legal risks later on.

2. Choose appropriate sales channels for the initial phase

• Sell directly at farmers' markets, craft fairs, or weekend markets to:

  • Test customer reactions

  • Receive practical feedback on scent, design, and price

• Sell on e-commerce platforms like Etsy or Artfire to:

  • Access existing customers

  • Avoid investing heavily in technical infrastructure

  • Suitable for beginners learning how to sell handmade soap online

3. Expand channels to increase long-term profits

• Build your own website to:

  • Control your brand

  • Avoid platform fees

  • Increase profit margins on each handmade soap bar

• Contact local natural cosmetic stores, spas, or health stores to:

  • Ensure stable wholesale sales

  • Increase production steadily

  • Build brand reputation in the handmade soap market

Tip 1: Create a budget to understand the costs of selling handmade soap

1. List all necessary expenses

• Clearly list everything you need before you start selling handmade soap, not just ingredients.

• Common expenses include:

  • Soap-making tools and equipment

  • Packaging, labels, product containers

  • Advertising costs, photography, sales posts

  • Product liability insurance (if applicable)

  • Booth rental fees at fairs, craft markets

A detailed list helps you avoid missing expenses and easily control cash flow from the start.

2. Understand the actual startup capital needed

• Many home-based business models can require hundreds of millions of VND to start, but handmade soap businesses typically don't cost as much.

• According to the actual experience of many handmade soap makers:

  • You can start with about 20–30 million VND

  • Suitable for small-batch production

  • No need to hire staff

  • Utilize space at home

This amount of capital is sufficient for you to test the market, make your first sales, and adjust products based on customer feedback.

3. Use the budget as a decision-making tool

• Once you have a clear budget, you will:

  • Know whether to invest heavily in ingredients or packaging

  • Determine the selling price of handmade soap close to the actual cost

  • Avoid selling a lot but making no profit

For beginners, the most effective way to sell handmade soap is not to spend a lot of money upfront, but to start lean, plan carefully, and gradually expand once steady revenue is established.

Tip 2: Comply with legal regulations when selling handmade soap

1. Understand that soap may be regulated as a cosmetic

• Each country has its own regulations regarding the production and sale of handmade soap.

• In the US, many types of handmade soap are classified as cosmetics and regulated by the FDA.

• Before selling, soap makers need to thoroughly research the guidelines for small businesses in the cosmetics industry to avoid legal violations.

2. Carefully check ingredients and additives used

• If using colorants, fragrances, or additives:

  • Only use substances approved for cosmetics

  • Avoid buying unbranded ingredients of unknown origin

• This helps ensure product safety and facilitates compliance checks when expanding your business.

3. Do not make therapeutic claims

• Do not advertise handmade soap as having the effect of:

  • Treating dermatitis, fungi, psoriasis, or specific medical conditions

• Therapeutic claims are only allowed when:

  • The product is classified as a drug

  • There is official approval from the regulatory agency

• For beginners, focus on basic cleansing, moisturizing benefits, and user experience.

4. Implement safe manufacturing processes

• Follow Good Manufacturing Practices (GMP) principles:

  • Clean soap-making area

  • Separate tools, free from contamination

  • Clear and honest product labeling

• This helps reduce the risk of contamination and protects brand reputation in the long run.

5. Consider product or business registration

• Although not mandatory, the FDA encourages registration through the Voluntary Cosmetic Registration Program.

• Registration helps:

  • Increase credibility when working with partners

  • Facilitate expansion into wholesale or export channels

Tip 3: Label handmade soap clearly and correctly

1. Always list all ingredients

• The label should clearly display all ingredients in the handmade soap.

• The ingredient list should:

  • Be listed in descending order by quantity (percentage)

  • Use common, easy-to-understand names, avoiding confusing terminology

• This helps reassure buyers and reduces legal inspection risks.

2. Add mandatory information according to local regulations

• Depending on the sales region, soap labels may require additional information:

  • Expiration date or best-before date

  • Safety warnings such as "Do not consume"

  • Product origin or place of manufacture

• Complying from the start helps you easily expand sales channels and avoid having to revise labels later.

3. Clearly state the product name and scent

• Each handmade soap bar should have:

  • A specific, memorable product name

  • A concise and accurate scent description

• For example: rose and patchouli scented soap, natural soap for sensitive skin.

4. Display accurate product weight

• Clearly state the weight of each soap bar:

  • Measured in grams or ounces

  • Reflecting the actual weight after the soap has cured

• This is important information that helps customers compare prices and increases transparency.

5. Provide seller or business information

• The label should include:

  • Personal name or brand name

  • Contact information such as phone number, email, or website

• Clear information increases credibility and creates a professional impression when selling handmade soap.

Tip 4: Purchase liability insurance to protect your handmade soap business

1. Understand why insurance is necessary, even if you follow proper procedures

• No matter how carefully you make handmade soap, risks can still occur.

• Common situations include:

  • Customers experiencing skin irritation or allergic reactions to ingredients

  • Customers claiming misleading product labels

  • Goods being damaged or lost during shipping

• Liability insurance helps you:

  • Be protected against claims

  • Avoid significant financial losses in case of unforeseen incidents

2. Buy insurance before you start selling

• It's best to buy insurance:

  • Before selling handmade soap to the market

  • Even before giving products to friends and family for testing

• A home-based business insurance package is usually sufficient for beginners and is not too expensive compared to the potential risks.

3. Common ways to purchase insurance

• You can:

  • Purchase directly from insurance companies

  • Join professional associations that offer insurance benefits

• Some international organizations chosen by many handmade soap makers:

  • Indie Business Network

  • Handcrafted Soap & Cosmetics Guild

4. Choose insurance suitable for your business size

• Depending on how you sell handmade soap, you may need one or more of the following types of insurance:

  • General liability insurance

  • Product liability insurance

  • Home-based business insurance

  • Business property insurance

• If you:

  • Produce at home

  • Sell online or wholesale

  • Have additional staff to help
    then you should consult directly with an insurance provider to choose a suitable package.

Tip 5: Manage financial records when selling handmade soap

1. Track all income and expenses from the beginning

• Clearly record all:

  • Revenue from selling handmade soap

  • Costs of raw materials, packaging, shipping, advertising

• This helps you:

  • Know if you are making a profit or loss

  • Identify areas for improvement such as selling price, packaging costs, or marketing budget

2. Use data to adjust business strategy

• With clear financial data, you can:

  • Increase advertising spending if orders are profitable

  • Adjust selling prices to match actual costs

  • Cut unnecessary expenses to optimize profits

• This is a crucial foundation for sustainable handmade soap sales, not based on intuition.

3. Keep records for tax declaration purposes

• Complete financial records help:

  • Accurately declare taxes

  • Avoid risks during inspections

• You should keep:

  • Purchase invoices

  • Bank statements

  • Receipts for business-related expenses

4. Use separate tools and accounts for your business

• Use accounting software like QuickBooks to:

  • Automatically track cash flow

  • Reduce errors from manual record-keeping

• Open a separate bank account for your handmade soap business to:

  • Separate personal and business finances

  • Easily control and report finances

5. Consider hiring an accountant as your business grows

• As orders and expenses increase:

  • Hiring an accountant saves you time

  • Ensures records are standard and compliant with the law

• This is a necessary step if you want to grow from a small business to a stable long-term model.

Tip 6: Price handmade soap for profit

1. Minimum selling price must be double the cost

• To run a profitable business, you cannot sell handmade soap at or below its production cost.

• Basic principle:

  • Minimum selling price ≥ 2 times production cost

• First, create a detailed cost sheet for each bar of soap, including:

  • Raw materials

  • Labor (time, effort)

  • Packaging, labels

  • Overhead costs such as advertising, licensing fees, operations

2. Determine the floor price to avoid losses

• After adding all costs, determine:

  • The lowest price you can sell at and still break even

• Real-world example:

  • Cost to make 1 bar of soap: $1.83

  • Wholesale price should be: $3.66

  • Retail price should be: $7.32

• This is a common pricing method in handmade soap businesses, helping you maintain profitability for both wholesale and retail channels.

3. Add a safety margin for risks

• You should price higher than the minimum to:

  • Account for potential increases in raw material prices

  • Cover unexpected incidental costs

• This "price cushion" helps you avoid sudden price increases, preventing customer loss.

4. Compare with market prices before finalizing

• In addition to internal costs, research:

  • Similar handmade soap products

  • Ingredients, weight, customer segment

• If the market price for similar products is around $12:

  • Set your price within that range

  • Avoid pricing too low, which might make customers doubt the quality

Tip 7: Identify the right target market for handmade soap

1. Research real customer needs

• Each type of handmade soap addresses a different need.

• Before selling, find out:

  • What customers are concerned about: sensitive skin, dry skin, relaxing scent, vegan ingredients

  • How much they are willing to spend on a bar of soap

• By understanding their needs, you can easily choose the right formula, scent, and marketing message.

2. Choose a very specific customer group

• Instead of selling to "everyone," focus on a clear group:

  • People with sensitive skin who need gentle, moisturizing soap

  • Young people who prefer colorful, fun-designed soaps

• Targeting the right audience helps:

  • Easy to communicate

  • Customers feel the product is “made just for them”

  • Increases repurchase and referral rates

3. Don't make too many products when starting out

• When first learning how to sell handmade soap:

  • Only develop a few key products

  • Focus on doing them really well instead of too much variety

• A clear product line will:

  • Be easy to manage costs

  • Be easy to build brand image

  • Reduce inventory risk

4. Observe competitors to find opportunities

• Look at stores selling handmade soap:

  • Which products sell well

  • What customers praise or complain about

• From there, you can discover:

  • Highly sought-after scents

  • High demand for vegan, cruelty-free soap

  • Market gaps that few people exploit

Tip 8: Build a clear handmade soap brand

1. Understand that a brand is how you are remembered

• A brand is not just a logo, it's:

  • How you tell the story of handmade soap

  • The values you pursue and what customers feel

• Once the target market is identified, the brand needs to speak the "language" of that customer group.

2. Choose a brand name tied to core values

• Your store or product line name should be:

  • Easy to read, easy to remember

  • Reflect your style and beliefs

  • Suitable for the target audience

• For example: if customers care about nature and health, prioritize names that suggest purity and sustainability.

3. Invest in suitable brand identity visuals

• If you're not confident in design:

  • Collaborate with an artist or graphic designer

  • Focus on logo, colors, typography

• Visuals need to be consistent across:

  • Handmade soap packaging

  • Product labels

  • Online store or physical sales counter

4. Ingredients and packaging must "tell the same story"

• An eco-friendly brand should be accompanied by:

  • Sustainably sourced ingredients

  • Minimalist, easily recyclable, recycled paper packaging

• Don't just make it pretty, make it true to the message you promote.

5. Write product descriptions that align with the brand's spirit

• Each handmade soap description should:

  • Clearly express the brand's personality

  • Highlight unique values

  • Avoid clichés, state what you genuinely do

• For example: soap made from eco-friendly ingredients, nature-inspired scents, providing a relaxing and safe feeling when used.

Tip 9: Effectively promote handmade soap on social media

1. Proactively bring products to the right people

• To sell handmade soap, you need to let customers know you exist.

• Whether selling on a marketplace or your own website, social media is still a quick and cost-effective way to reach customers.

• Popular platforms to leverage:

  • Facebook to reach familiar, easily engageable customer groups

  • Instagram to showcase product images, packaging, and brand style

  • Twitter for quick updates and connecting with communities interested in handmade products

• Start simply by asking friends and family to share to generate initial reach.

2. Utilize paid advertising when needed

• Some platforms allow:

  • Running ads

  • Boosting posts with flexible costs

• Suitable when you:

  • Launch new products

  • Want to reach specific customer groups by age, interests

• Start with a small budget to measure effectiveness before scaling up.

3. Don't just post sales pitches

• Engaging content helps customers trust you and follow you longer than just advertising.

• You can share:

  • The handmade soap making process

  • Tips for choosing the right soap for different skin types

  • Behind-the-scenes stories or local soap makers

• Useful content helps you stand out and get shared organically.

4. Use social media to communicate with customers

• Every post is an opportunity to:

  • Answer questions

  • Address concerns about ingredients, scent, usage

  • Listen to feedback to improve products

• Regular interaction helps:

  • Increase credibility

  • Make customers feel valued

  • Build long-term relationships, not just a one-time purchase

Tip 10: Sell handmade soap online through intermediary platforms

1. Utilize existing platforms for quick, low-barrier sales

• E-commerce platforms specializing in handmade products can help you get started very quickly.

• With platforms like Etsy or Artfire, you just need to:

  • Create a seller account

  • Write product descriptions

  • Upload images

  • Set a selling price

• This is suitable for beginners learning how to sell handmade soap online who don't want to invest in their own website yet.

2. Price to include platform fees

• Most platforms will:

  • Charge product listing fees

  • Take a percentage of each order

• When pricing handmade soap, you need to:

  • Add platform fees to the cost

  • Avoid selling products with low profit margins

• This is a common mistake for beginners.

3. Carefully read label and description requirements

• Each platform has its own requirements for:

  • Labeling

  • Ingredient information

  • Product benefit descriptions

• Compliance helps:

  • Avoid product removal

  • Maintain long-term store reputation

4. Research competitor stores to learn quickly

• Before listing your products, check:

  • Similar handmade soap shops

  • Which products have many purchases

  • How they name, write descriptions, and take photos

• The goals are:

  • Understand what's working

  • Avoid repeating practices that don't generate orders

5. Invest in visuals to increase purchase rates

• Images are a decisive factor when selling handmade soap online.

• You should:

  • Take clear, well-lit photos

  • Show the colors, textures, and packaging

  • Each product should have multiple angles

• Good images help to:

  • Increase credibility

  • Reduce customer inquiries

  • Increase conversion rates

Tip 11: Create a dedicated website to sell handmade soap

1. Proactively manage profits and control your business

• Having your own website allows you to:

  • Avoid revenue percentage deductions like when selling on marketplaces

  • Have full control over pricing, promotions, and sales methods

• This is suitable if you want to develop long-term and build a sustainable handmade soap brand.

2. Prepare the basic website platform

• To start, you need:

  • An easy-to-remember domain name related to handmade soap or your brand

  • Stable hosting services

  • A content management system that suits your needs

• Popular options:

  • WordPress: flexible, easily scalable

  • Drupal: suitable for complex websites

  • Squarespace: user-friendly, beautiful interface

3. Choose a secure payment system

• A handmade soap website needs to integrate convenient payment options for customers.

• Some popular platforms:

  • Shopify: strong for online sales

  • PayPal: familiar, easy to use

  • Squarespace (Business plan): built-in e-commerce

• You should choose a solution that fits your current scale and budget.

4. Build clear, easy-to-buy product pages

• Each handmade soap product needs:

  • Beautiful, well-lit photos from multiple angles

  • Clear descriptions of ingredients, scent, and weight

  • Transparent, easy-to-understand pricing

• The presentation should be equivalent to or better than marketplace listings.

5. Combine a dedicated website and intermediary marketplaces

• You don't have to choose one or the other.

• Practical approach:

  • Sell on marketplaces to get orders and new customers

  • Direct customers to your own website for repeat purchases

• This is a common strategy in selling handmade soap today, helping to generate quick revenue while building long-term assets.

Tip 12: Sell handmade soap at craft markets and fairs

1. Leverage local markets to reach customers directly

• Farmers' markets and craft fairs are ideal places to:

  • Introduce handmade soap to real buyers

  • Build direct relationships with customers

• You can find event information via:

  • Craigslist

  • Local craft groups and forums

2. Build a returning customer base

• When selling directly, make sure to:

  • Invite customers to sign up for email updates

  • Offer discounts for future purchases

• An email list helps you to:

  • Stay in touch with existing customers

  • Announce new products or promotions

  • Increase long-term revenue without high advertising costs

3. Prepare marketing materials to accompany products

• You should have readily available at your booth:

  • Brand brochures

  • Discount vouchers

  • Business cards

  • Handmade soap samples

• These small details help customers remember you after they leave your booth.

4. Increase revenue with value-added services

• Besides selling soap, you can:

  • Offer gift-wrapping services

  • Charge extra for gift boxes or special packaging

• These simple services help increase the value of each order.

5. Create personal connections to build trust

• Chat directly with customers:

  • Explain how to use the soap

  • Suggest products suitable for each skin type

• Sincere advice helps to:

  • Build greater customer trust

  • Encourage repeat purchases

  • Get referrals to others

Tip 13: Sell handmade soap through health and beauty stores

1. Approach local stores for quick and stable sales

• Health stores, natural cosmetic shops, and small spas often:

  • Are willing to cooperate with local handmade soap makers

  • Prioritize artisanal products with a clear story

• You can:

  • Visit stores directly

  • Call or email to introduce your products

• The big advantages are:

  • Quick revenue generation

  • Stores help with display, promotion, and sales on your behalf

  • You get more time to focus on production

2. Understand common cooperation models

• Before working with stores, it's important to distinguish:

  • Wholesale:

    • Stores buy handmade soap at a lower price than retail

    • You receive payment immediately

    • Suitable for fast, stable cash flow

  • Consignment:

    • Stores only pay when products are sold

    • You receive a pre-agreed percentage

    • Suitable when stores are hesitant to buy large quantities

• Each model has its pros and cons, so clearly agree on terms in writing.

3. Consider custom production

• Another option is to:

  • Make custom handmade soap for individual stores or boutiques

  • Formulas, scents, and packaging are tailored to partner requests

• This form is often called contract manufacturing.

• Suitable when:

  • You have stable production experience

  • You want consistent and large orders

4. Prepare thoroughly before offering to sell

• Before working with stores, prepare:

  • A clear wholesale price list

  • Product samples

  • Full ingredient and labeling information

• Professionalism from the start helps stores trust you and facilitates long-term cooperation.

Differentiating Soap Regulatory Bodies in the US

1. "Pure" soap is not regulated by the FDA

• In the US, pure soap is understood to be a product:

  • Made from fats or oils and lye

  • Contains no synthetic detergents, artificial fragrances, or other additives

• This product group is not within the FDA's regulatory scope.

2. Responsible Regulatory Body

• Pure soap is regulated by the Consumer Product Safety Commission (CPSC).

• The CPSC focuses on:

  • Consumer product safety

  • Risks of harm from misuse

  • Appropriate labeling and warning requirements

3. When does soap become a cosmetic?

• If handmade soap:

  • Contains added fragrances, colorants

  • Or claims beauty or skincare benefits

• Then the product may be classified as a cosmetic and regulated by the Food and Drug Administration.

4. Why sellers need to understand this point

• Helps you:

  • Label and describe products according to regulations

  • Avoid legal risks when expanding sales

  • Choose a suitable development direction for your handmade soap line

References

1. https://www.thecosmeticboxes.co.uk/product/custom-soap-boxes-packaging-uk/
2. https://www.mbda.gov/news/blog/2011/11/how-estimate-cost-starting-business-scratch
3. https://www.fda.gov/cosmetics/cosmetic-products/frequently-asked-questions-soap
4. https://www.fda.gov/cosmetics/resources-industry-cosmetics/
   small-businesses-homemade-cosmetics-fact-sheet
5. https://www.fda.gov/cosmetics/cosmetic-ingredient-names/
   color-additives-permitted-use-cosmetics
6. https://www.fda.gov/cosmetics/cosmetics-guidance-documents/
   good-manufacturing-practice-gmp-guidelinesinspection-checklist-cosmetics
7. https://www.lowimpact.org/starting-your-own-business-how-to-sell-hand-made-soaps/
8. https://www.soapqueen.com/business/so-you-want-to-sell-your-soap-part-one/
9. https://www.modernsoapmaking.com/blog/absolutely-need-insurance-sell-single-bar-soap
10. https://www.modernsoapmaking.com/blog/understand-business-insurance-needs/
11. https://www.modernsoapmaking.com/blog/getting-started-with-bookkeeping/
12. https://www.modernsoapmaking.com/blog/knowing-real-cost-products
13. https://www.canr.msu.edu/news/pricing_my_craft_item_how_much_should_i_charge

Translator: Sidney Bailey Hoang.