How to start a candle business: rules, costs and where to sell

How to start a candle business in seven steps

Safety testing and labels come before photos and listings, because a buyer burns the candle without you there.

1. Choose one product line

   Start with one type of candle, such as container candles in one jar size, and a short list of scents. Fewer variations mean fewer test burns, a smaller supply order and a clearer shop.

2. Test-burn every combination

   Each mix of wax, wick, container and fragrance load burns differently. Burn samples to the end, change one thing at a time, and log what you see using the checklist below.

3. Write the label

   Put fire-safety warnings, the net weight, the product name and your business name and address on each candle. The label section below gives the source for each item.

4. Register the business

   Choose a business structure and register the business. Then ask your city or county which licenses a home business needs, and your state's tax agency whether you need a seller's permit. The home business section below covers licenses, zoning and insurance.

5. Work out your price

   Add up wax, wick, fragrance, jar, label, box and your time per candle, then add platform fees and shipping.

6. Pick where to sell

   Choose a marketplace, your own store, or both. The fee table and the last section below compare the options.

7. Photograph and list

   Show the candle lit and unlit, the label and the size next to a common object. Describe the scent notes, the wax type and the burn time from your own tests.

The rules for selling candles

The FDA's own guidance says scented candles are regulated by the Consumer Product Safety Commission (CPSC).

ASTM International publishes the candle industry standards, including F2417 for fire safety and F2058 for warning labels. The CPSC's candle page lists them under the heading Voluntary Standard(s).

Rules vary by state and city, and they change. This page is general information, not legal or tax advice. If you are unsure whether a rule covers your candles, ask the agency that wrote it or a lawyer in your state.

What to put on a candle label

The FTC's packaging rules apply to consumer commodities, which the FTC defines as a product customarily sold at retail for consumption or use by individuals, which usually is consumed or expended in the course of such consumption or use. A candle is used up as it burns, so read that definition and check whether it covers what you sell. If it does, the label states the identity of the commodity; the name and place of business of the manufacturer, packer, or distributor; the net quantity of contents.

• What the product is, such as "soy wax candle". The FTC rule says the principal display panel of a consumer commodity shall bear a specification of the identity of the commodity.
• The net weight. The rule asks for a statement in terms of weight or mass for a solid, semi-solid or viscous commodity, given in both avoirdupois pound and ounce and SI metric kilograms, grams, or milligrams. The FTC's own example is “Net Wt 15 oz (425 g)”.
• Your business name and address, so a buyer or retailer can reach you.
• Fire-safety warnings. ASTM F2058 is the labeling standard for candles; buying it costs $72.00.

Scent and health claims to keep off the label

The FDA says claims that a product will ease pain, relax muscles, treat depression or anxiety, or help you sleep are drug claims. It adds that drugs must meet requirements such as FDA approval for safety and effectiveness before they go on the market. So a candle described as helping you sleep or treating anxiety is making a drug claim. Natural ingredients do not change that: the fact that a fragrance material or other ingredient comes from a plant doesn't keep it from being regulated as a drug.

Advertising is a separate matter: advertising claims are regulated by the Federal Trade Commission. The FTC's Green Guides say it is deceptive to misrepresent, directly or by implication, that a product is non-toxic. A marketer who says non-toxic should have competent and reliable scientific evidence that the product is non-toxic for humans and for the environment, or should clearly and prominently qualify their claims to avoid deception. Describe what is in the candle, such as the wax type and the scent notes, instead of what it does for the body.

How to make candles to sell: testing before you list

ASTM F2417 in the rules table is the formal fire-safety reference. At home, keep a log for each design with the wax, wick size, jar, fragrance and fragrance amount, note what you saw at each stage of the burn, and keep the record with the batch.

• Flame: steady and not so tall that it smokes or flickers hard.
• Melt pool: reaches the edge of the jar in a reasonable time, so the candle does not tunnel.
• Container: the jar stays intact and is not too hot to handle near the end of the burn.
• Soot: little or no black residue on the rim of the jar.
• Scent: noticeable when lit and when cold, without overloading the wax.
• End of burn: the wick stops with wax left in the base, so the flame does not reach the bottom of the jar.

How to start a candle business from home

If you make candles at home, check local rules first. The SBA says most small businesses need a combination of licenses and permits from both federal and state agencies, and that state and local licenses depend on your business activities and business location. Zoning is local too: zoning ordinances can still apply even to home-based businesses. Ask your city or county planning office whether a home business that heats wax and stores fragrance oil needs a permit or an inspection.

Insurance is the other question to settle early. The SBA describes product liability insurance as coverage that protects against financial loss as a result of a defective product that causes injury or bodily harm. If you hire help, the SBA says the federal government requires workers’ compensation, unemployment and disability insurance for every business with employees. Ask any market or shop you plan to sell through whether it requires proof of insurance.

What it costs to start a candle business

Platform and standard prices below are published figures. The supply rows are examples: replace them with quotes from your own suppliers, since prices depend on the supplier and the quantity.

What each platform keeps from a candle sale

Example: one $24 candle sold online, using each platform's own published rates.

Where to sell candles

You can sell in more than one place: a marketplace brings its own shoppers, and your own store charges less per order, as the fee table shows. Jar candles are heavy and wax can soften in heat, so price packaging and shipping from the start.

• Etsy: orders that come through Etsy's Offsite Ads add a fee of 15% for smaller shops, and shops under $10,000 in sales over the past 365 days can opt out. Shops above that sales level pay 12%, mandatory for the lifetime of the shop.
• Amazon Handmade: an application before you can sell, then a referral fee of 15% or $0.30, whichever is greater.
• Your own store on Shopify or Square Online: lower fees per order, but you bring the buyers yourself.
• Craft fairs and markets: buyers can smell the candle before they buy. Square charges 2.6% + 15¢ on Square Free for in-person card payments.
• Local shops: boutiques and gift shops buy at wholesale prices, so set prices where both the wholesale and the retail price cover your costs.

Where Nation fits

Questions about starting a candle business