Neither the product nor its ingredients need approval by FDA before they go on the market, except for any color additives it contains. It is your responsibility to make sure your product is safe for consumers when it is used as intended, and to make sure it is properly labeled.
Do I still need insurance if I don't sell my soap? A million times over, yes. If anyone besides you uses your soap or lotions, etc., you need product liability insurance. Even if a consumer does not purchase a product from you, they can and will hold you liable for the product.
Do you need a license to sell soap? The short answer is no. The long answer is still no, but there are vital steps you need to take in order to avoid penalties and operate a legal soap-selling business. Many of us dream of starting our own business.
Yes! Selling homemade soaps can be a profitable business, especially if you focus on quality ingredients, unique formulations, and effective marketing. Since you are interested in VedaOils, you can leverage their soap bases, essential oils, and natural additives to create high-quality products that appeal to consumers.
To that end, CPSC does not have specific requirements for soaps. In general, soaps would be subject to the Federal Hazardous Substances Act (FHSA) and the Consumer Product Safety Act (CPSA). If the product meets the definition of a hazardous substance under the FHSA, then it must bear precautionary labeling.
Neither the product nor its ingredients need approval by FDA before they go on the market, except for any color additives it contains. It is your responsibility to make sure your product is safe for consumers when it is used as intended, and to make sure it is properly labeled.
Etsy doesn't require sellers to have a business license.
Selling Soap on Amazon
Selling soap on the platform doesn't require approval from Amazon, but you must comply with all federal laws and regulations applicable to soap products. True soap that meets the definition of the term in the FDA's regulations is regulated by the Consumer Product Safety Commission (CPSC).
Handmade soap and bath products are a great example of an easy-to-make product that can be sold on Etsy. These items are also something that people will buy as gifts for others, so it's good to have options in this category when you're browsing through the site.
Lotions, soaps, and other cleansers may be regulated as cosmetics or as other product categories, depending on how they are intended to be used.
As long as the soaps and lotion/balms are not being sold by making health claims as cures or treatments they can be sold at farmer's markets. The FDA has provided guidance for small businesses and homemade cosmetics makers in a fact sheet.
A melt & pour base is soap that is ready to use as-is; you could simply cut it and sell it, if you wanted to.
The short answer is no, you do not need FDA approval to sell soap. The FDA does not provide approval or licensing to soap or cosmetic crafters. While you don't need FDA approval to sell soap and cosmetics, you are still responsible for selling safe products to the public.
Handcrafted Soap and Cosmetic Guild
You can get up to $2,000,000 in general and product liability coverage. They offer a minimal coverage option for $285 a year and a standard coverage option for $390 a year.
No licensing or approval is required however it is your responsibility to ensure the product is safe when used as intended and is properly labeled.
Etsy's transaction fee is 6.5% of the total cost of the sale. These fees are only collected on products that sell in your Etsy shop, and will be posted automatically to your account once a purchase is made.
Selling homemade soap can be profitable if you have the right pricing and promotion strategy. Profitability depends on many factors, including product quality, cost control, and operational efficiency. Researching and planning prior to starting your soap business will help increase your chances of profitability.
Selling soap can be extremely lucrative, with profit margins ranging between 150% on the low end to 525% on the high end. While these margins do not include packing or shipping costs, these costs can be passed onto the customer.
If you're selling your crafts to the public — either at craft fairs or on websites like Etsy, Facebook or Amazon Handmade — you'll need to officially register your crafting business. It's easy to get caught up in the fun of creating something and finding out people want to pay you for your craft.
Craft shows and farmers' markets are both popular venues for handcrafted soaps, or you may even decide to open your own brick-and-mortar store one day.
HANDMADE SOAP MARKET OVERVIEW
The Handmade Soap Market size valued at USD 0.17 billion in 2024 and is expected to reach USD 0.29 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.64% from 2024 to 2032.
Whether you're selling homemade soap and body products at craft fairs or your Etsy shop, you need to protect your business. For example, there's always a chance that someone could be allergic to fragrances or oils that you used. Suddenly, you could be held liable for a bodily injury claim.
There are no specific regulations regarding soap; however, any household product that meets the definition of a hazardous substance under the FHSA must bear cautionary labeling warning of the principal hazard(s) associated with the product and enabling the consumer to use and store the product safely about the ...
A seller's permit is not a requirement to sell on Etsy. Casual hobbyists and artists can sell without a business license and seller permit.