Is it possible to make money selling candles from home?
You can make a full-time income, if not more, from making and selling candles from home. Candle making can start as a side hobby which can grow into your main form of income. You can start selling locally or branch out to online marketplaces like eBay or Amazon.
Imagine, being able to quit your job because you are selling candles. You don’t even have to quit your job if you simply want to enjoy some extra cash.
Candle making is the perfect opportunity for someone with a crafty soul.
Luckily for you, I’m going to show you that it is possible to make money selling candles from home. I will even show you some of the best places to sell your candles. Most importantly, I will show you how to find which candles will sell the best.
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Can you make money making and selling candles?
It is possible to make money making and selling candles from home. Profit depends on number of sales, candle price, cost of ingredients, and customer acquisition costs. Typical profit margins for a homemade candle range between 50 to 70%.
To make money selling candles, you need to focus on providing quality candles while reducing your expenses. The faster you can make quality candles, the better. Then, it is only a matter of finding a way to attract your customers.
The biggest setback with homemade candles is the labor-intensive process to make each candle. Most homemade candle businesses will involve you performing most of the work, so your only cost this time.
Setting your candle price is a tricky process. Price your candles too high and nobody will buy. However, price your candles too low and you’ll miss out on money.
A simple price increase of $1 per candle will give you an extra $100 for every 100 candles sold. For a candle business, that’s pretty good!
Choosing the right ingredients will be your biggest expense. Therefore, you should take great care to reduce this expense as much as possible. However, do not sacrifice the quality of your candles for the sake of profits.
You will also need to consider the cost of acquiring your customers. How do you plan on selling your candles to people? For example, your Farmers Market might charge you $25 for a booth which should be accounted for in your candle price.
How much can you make from selling candles?
New candle makers can expect to earn between $500 and $1,000 per month and work up to a full-time income. Homemade candle makers can expect to make between 50% to 70% profit margins on their candles. Hiring employees will reduce your profit margin so you’ll be earning between 25% and 50%.
Yes, it is possible to grow this candle business to a full-time income. However, it’s going to take some work on your part to reach a full-time income.
Eventually, you’re going to run into choke points in your business. These ‘choke points’ will limit you from taking your business to the next level.
For example, your basic candle making equipment will only allow you to make so many candles. Eventually, you might need to upgrade your equipment to make more candles, faster.
Working through each of these choke points will allow you to grow. As a product based business, your income has unlimited earning potential.
So how can you earn $1,000 per month selling candles?
Standley Handcrafted put together a video explaining how he makes $1,000 per month making and selling candles.
NOTE: The math in the video is incorrect – which he acknowledges in the YouTube comments. See chart below for corrected math.
|8 oz candle||16 oz candle|
|Cost to make candle||$2.60||$5.20|
|Number of sales||60||40|
|Profit (Rough estimate)||$444||$512|
As you can see, selling 100 candles would net you $956. However, you may have selling fees such as a Farmers Market booth or online marketplace fees.
Where can I sell homemade candles?
Farmers markets are one of the best places to sell homemade crafts when you’re just getting started. However, you can reach a larger customer base by selling online. Online marketplaces such as Etsy, Amazon, eBay, Craigslist, Shopify and Facebook Marketplace are all good places to sell candles.
At the end of the day, you need to find a marketing plan that works for you. In some cases, you may not even want to go online. You may want to hit up boutiques and local stores to see if they can sell candles for you.
The internet is a powerful place when it comes to selling products like candles. However, the internet can add a lot of hassle like shipping your products and out of state sales tax. Some online marketplaces like Etsy or Amazon will collect and remit sales tax for you.
Etsy is a good place for candle sellers because Etsy focuses on handmade and craftable items for sale. When people shop on Etsy, they know they are buying from individuals like yourself and supporting small-business.
Etsy currently has a $0.20 listing fee for each item. There is also a 5% transaction fee as well as a 3% + $0.25 payment processing fee for each transaction. You will need to take into account these fees as well as shipping fees into your item pricing.
For example, let’s say you sell a $10 candle. Etsy is going to charge you $1.15 and there may be additional shipping fees that you or the buyer need to pay.
Amazon is another good place to sell your product, but the fees can add up very quickly. However, Amazon makes selling online very easy because they have a large customer base. In addition, services like Fulfillment by Amazon lets you take advantage of Amazon warehouses.
For example, Amazon has a free plan which involves a $0.99 charge for each item sold. Alternatively, you can sign up for the paid Pro seller plan which is $40 per month.
Now, do you want to ship the items yourself or let Amazon ship them for you? If you want to use Amazon FBA then you will have additional fees for each item. Fulfillment by Amazon is an extremely beneficial service, but it will eat in your profit margins.
Personally, I like the Fulfilment by Amazon because they don’t have to worry about shipping out the items myself. I send the items into Amazon once and then Amazon will send them out when a sale is made.
eBay is another Online Marketplace which is very popular for online sellers. Unlike Fulfillment by Amazon, you will be responsible for shipping out all products sales. However, some people enjoy selling on eBay more than they enjoy selling on Amazon.
Either way, eBay can be a very powerful Marketplace for your business.
Craigslist is a good way to get some free advertising if you wanted to stay local. Just like selling your unused items, you can create an advertisement anytime you want. Selling products on Craigslist is completely free, so why not use it as part of your strategy?
You can create an online e-commerce business by using Shopify. I would recommend using Shopify if you are wanting to create your own brand and rapidly scale a company. However, for most individual sellers, it’s going to be a hassle.
As I previously mentioned, most of you would be more interested in selling at local farmers markets. Simply selling at farmers markets is probably the easiest way to get customers.
The next level of difficulty is selling on a platform like eBay or Amazon. eBay and Amazon already have plenty of customers, but you have to find a way to get customers to find your listing.
Shopify is the most difficult because you create an online store that nobody knows about. Once your candle business is live, you still need to find a way to drive traffic to your website.
That being said, if you want to grow into a large company and make this business more than just a hobby, Shopify may be the way to go. Just keep in mind, you will need to find a way to make candles, find customers, ship orders, and do everything!
Facebook Marketplace is another good option to generate some free sales. You can take pictures of your candles and sell them in local buy and sell Facebook groups.
I’ve already talked about farmers markets a lot for selling your candles. Most farmers markets are affordable for people like yourself to get a booth at. You’ll make a lot of good connections to your community and maybe even generate some repeat business.
Local business owners love to support each other. You can find local stores all over town and see if they’d be willing to buy your candles at wholesale. The local store would carry your line of candles and resell them for a higher price.
How can you find the best selling candles?
To find the best selling candles, you must evaluate interest as well as competition for similar products. Free online tools such as Google Trends and Google Keyword Planner can help you estimate the demand for a certain product. Competition is more relevant when selling online, but can be estimated by the number of listings for a search term.
Google trends evaluates product interest
The first step to finding a profitable candle idea is to evaluate the candles popularity. Google Trends is good for evaluating how popular candles are in relationship to one another.
For example, maybe you’re not sure if you should be selling peppermint, vanilla bean, or lavender candles. You can type these terms into Google Trends and compare the popularity between all options.
As it turns out, the most popular candle is a lavender candle. Peppermint candles come in second and lastly vanilla bean is our third option.
If you’re selling online, you can also get an idea of what states are more interested in certain types of candles. For example, you can search for mosquito repellent candles and find out California has the highest interest.
Therefore, if you are going to pay for advertising then your best bet would be to sell in California.
Google Keyword Planner evaluates demand
Additionally, Google Keyword Planner can give you a search volume estimate. In other words, a rough idea of how many people are searching for a specific term on Google every month.
For example, there are 1,000 to 10,000 Google searches for a mosquito candle every month. Therefore, you can reason there is demand for this type of candle. Avoid making candles that have low search volume, because there is minimal demand.
Search results indicate product competition
If selling online, how many results appear for your search term? The more results that appear for a search term indicates how competitive the product is.
Let’s take a look at an example. Let’s assume that you have two different candles that you are wanting to sell. You’ve already looked at Google Trends and Google Keyword Planner. Both products have an estimated search volume between 1,000 and 10,000.
Now let’s assume that you are selling these products on Etsy. The first candle you searched for produces 5,000 other results. In other words, there are 5,000 other listings that are competing for purchase. The second candle only has 2,500 results.
Assuming a search volume of 5,000, the first candle has 5,000 searches for 5,000 listings. The second candle has 5,000 searches for 2,500 listings. Therefore, the second candle is less competitive and more likely to deliver sales.Click to Tweet! Please Share!Click To Tweet
Summary: Make money selling candles from home
As you can see, there’s a lot you need to know about making money selling candles from home. You can make a very good amount of money selling candles. Most individuals will start out making between $500 and $1,000 per month.
The best place to sell candles is locally at farmer’s markets or at locally-owned businesses. However, you can really scale your business by finding out how to sell online.
You can use free tools like Google Trends or Google Keyword Planner to help identify candles to make. You can use search results to help estimate the level of competition you will face on online marketplaces.