How to Start a Soap Business hero
by AMZScout T.posted on 06.01.2025

How to Sell Homemade Soap Online to Make Money

Soap-making has evolved from a traditional household craft into a thriving industry that combines creativity with entrepreneurship. Today’s consumers are drawn to handmade, eco-friendly products, making artisanal soaps highly sought-after. If you’re considering turning your soap-making hobby into a profitable business, this comprehensive guide will walk you through every step of the process.

In this article, we’ll tell you how to start a soap business legally, and provide a step-by-step guide. Read on to learn more about how to make soap to sell.

How the Soap-Making Business Works

The soap-making business centers on crafting and selling unique, handmade products that cater to niche markets. Customers value handcrafted soaps due to their personalized touch, high-quality ingredients, and often sustainable packaging. This industry thrives on originality and artistry, which makes it a perfect choice for creative individuals who are eager to monetize their skills.

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One of the key advantages of this business is its low barrier to entry. With a minimal initial investment, you can create high-margin products that resonate with customers. It also offers flexibility—whether you want to operate a small boutique business or scale up to a full-fledged enterprise, the choice is yours. Handmade soaps appeal to eco-conscious buyers, skincare enthusiasts, and anyone looking for unique gifts, creating a broad customer base to target.

Where to Get Ideas for Your Handmade Soap

Making soap is an enjoyable process, but to make money from it, you need to align your creations with market demands. Researching trends and analyzing customer preferences is critical—platforms like Amazon, Etsy, and Shopify are great starting points to help potential creators discover popular designs, scents, and packaging styles. Explore the best-selling products in the handmade soap category to help you understand what customers value most.

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Social media platforms like Instagram and Pinterest are also extremely useful for spotting emerging trends and getting inspiration from creative designs. By analyzing this data, you can create a product line that resonates with your target audience while staying ahead of market trends.

Additionally, consider leveraging specialized tools to gain further insights. For example, the AMZScout’s PRO AI Extension helps you dive deeper into vital niche information like sales, niche history, etc. when exploring soap trends on Amazon.

Here’s how to use this extension for deep market research:

  1. Install the AMZScout PRO AI Extension. Begin by adding the AMZScout PRO AI Extension to your browser. The installation process is quick and straightforward, allowing you to start analyzing products almost immediately.

    Install AMZScout PRO AI
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  2. Go to Amazon and study the app’s dashboard. Search for relevant products on Amazon you find attractive to sell. The tool’s round icon will be at the bottom-left—tap it to open its dashboard.

  3. Analyze key metrics. Compare products within your niche by focusing on these critical factors:

    • Check the Niche Score: A score above 7 suggests a market with strong potential.

      AMZScout PRO AI Niche Score
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    • Evaluate Niche History: Assess historical data to confirm demand stability. Avoid niches with significant fluctuations, as these might indicate seasonality or other instability factors.

      AMZScout PRO AI Niche History
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    • Monthly Sales Volume: Look for products with consistent sales exceeding 300 units to ensure high demand.

      AMZScout PRO AI Dashboard sales and revenue
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  4. Use AI Insights for Deeper Analysis. Simply click the AI Analysis button on the dashboard to access AI-generated comments about the niche. This AI SWOT analysis will share weaknesses and strengths of the products, and will give useful advice on how to enhance a product listing. This way, you will know how to take advantage of your competitors. For detailed feedback on specific products, select the product and click the purple AI Product Analysis button under it.

  5. Assess Profitability. Use the AMZScout Profit Calculator to evaluate potential margins. Ensure that your profit margin is at least 20–30% after accounting for fees and shipping.

    AMZScout PRO AI Profit Calculator
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By following these steps, you can identify winning products and niches, ensuring that your soap line is both creative and marketable.

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How to Make Money with Homemade Soap

While starting a soap business may initially appear easy and attractive, it’s still a business that requires your responsibility and careful strategy, and the amount of money you make also depends on you. Below, we’ll share a step-by-step guide on how to sell soap successfully.

1. Learn About Licensing and Certification Requirements

Before selling your soap, you need to familiarize yourself with local regulations. Depending on your location, you may need specific certifications, especially if you claim any skincare benefits for your products. Research all requirements thoroughly to avoid legal complications.

2. Create a Unique Product Idea

The handmade soap market thrives on originality. Explore trends and brainstorm ways to make your products stand out. Here are some ideas:

  • Colors and Patterns: Swirled or layered designs in vibrant colors are eye-catching.

  • Fragrances: Experiment with natural essential oils or unique scent blends.

  • Additives: Incorporate natural organic and nourishing ingredients like shea butter, almond oil, or vitamin E.

  • Shapes and Decorations: Use molds to create novelty shapes, or embed flowers and herbs for a natural look.

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3. Find the Best Price-Performance Ratio Supplies

Sourcing quality ingredients at reasonable prices is essential for maintaining profitability. Build relationships with reliable suppliers and consider bulk purchasing to reduce costs. Remember, high-quality materials can enhance your product’s appeal and customer satisfaction.

4. Develop an Attractive Package Design

Packaging is often the first thing customers notice, so it must be visually appealing and reflective of your brand. Eco-friendly options, minimalist designs, or rustic themes can make your products stand out. Adding thoughtful touches like handwritten labels or decorative ribbons can further elevate your packaging.

5. Create an Online Shop

Building a digital storefront is key to reaching customers. You can create a website using platforms like Shopify, or sell through marketplaces such as Etsy and Amazon Handmade. Ensure that your online shop is user-friendly, visually appealing, and equipped with secure payment options.

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6. Build High-Quality Listings

Your product listings should showcase your soap in the best light. Include high-resolution images, detailed descriptions of ingredients and benefits, and enticing language that highlights what makes your soap unique. Incorporate SEO-friendly keywords to improve your shop’s visibility among search results.

7. Manage Logistics

Efficient logistics are vital for maintaining a smooth operation. Invest in reliable packaging that protects your products during transit and partner with dependable courier services to ensure timely deliveries.

8. Promote Your Product

Marketing is the lifeblood of any business. Use platforms like Instagram and Pinterest to showcase your products through stunning visuals and behind-the-scenes content. Collaborate with influencers or bloggers in the skincare niche, run limited-time promotions, and engage with your audience to build a loyal customer base.

Launching your own soap brand doesn’t have to be too difficult—just adhere closely to the plan you create. Step-by-step, carefully and mindfully, you will reach your goal.

Below, we answer a few common questions.

FAQs

Is making soap expensive?

The cost depends on the type of soap you make. Simple recipes can be affordable, while premium designs or ingredients may increase your expenses. By sourcing supplies strategically and optimizing your processes, you can keep costs manageable while maintaining profitability.

What is the easiest type of soap to make?

For beginners, melt-and-pour soap is the easiest option. This method uses a premade soap base, allowing you to focus on customizing your colors, scents, and decorations without handling lye.

How do you make soap at home?

There are two popular methods for beginners:

  • Melt-and-Pour: Start with a ready-made soap base, melt it, add your desired colors and scents, and pour it into molds.

  • Cold Process: Mix oils with lye to trigger saponification. This method requires more skill, but also offers greater customization options.

Choose either option, or better yet, try them both to understand the ultimate principles of soap making and to select the one that suits you best.

Conclusion

The soap-making business offers a unique blend of creativity and entrepreneurship, making it a rewarding venture for anyone who’s passionate about crafting. By understanding market trends, creating distinctive products, and leveraging tools like the AMZScout PRO AI Extension, you can position yourself for success. With dedication, innovation, and a focus on quality, your soap-making business has the potential to thrive in this competitive yet exciting industry.

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