Can I Sell Scented Candles Online?
Scented candles are hotter than ever. The global scented candle market was valued at $2.8 billion in 2020 and is expected to grow at a CAGR of 4.4% from 2021 to 2028 as consumers continue to demand affordable luxuries for their homes.
Scents can be incredibly powerful in evoking memories, emotions, and creating ambiance. This explains the enduring popularity of scented candles, which allow people to infuse their living spaces with custom fragrances tailored to their taste and lifestyle. With their high profit margins and appeal as gifts, scented candles also represent an attractive product line for new and established retailers looking to grow their ecommerce business.
The lower barriers to entry for selling online make scented candles a particularly suitable product for a digital storefront. By leveraging dropshipping and efficient fulfillment, solo entrepreneurs can launch and run a successful candle brand from their laptop without needing extensive capital or inventory.
This guide covers key considerations for selling scented candles online, from developing products and branding to marketing, operations, and finance. We’ll provide actionable advice to help you determine if selling candles is right for you and navigate a competitive ecommerce landscape if you decide to pursue this fragrant opportunity.
Overview of the Scented Candle Market
The scented candle market has been growing steadily over the past decade. Total sales of scented candles in the United States reached $3.4 billion in 2021, up from $2.9 billion in 2018. Industry experts predict the market will continue expanding at a compound annual growth rate of around 5% through 2025.
When it comes to popular scents, floral and fruity fragrances are perennial favorites for scented candles. Top-selling floral scent notes include rose, lavender, jasmine, and gardenia. For fruity candles, sweet berry blends, citrus scents like grapefruit and lemon, and tropical notes like coconut and pineapple are consumer favorites. Other popular categories include gourmand food-inspired scents such as vanilla, sugar cookie, and pumpkin spice.
In terms of pricing, scented candles span a wide range. Simple votive candles retail for $2 to $5, while more premium container candles hand-poured into glass vessels can sell for $20 to $40. Luxury candle brands command prices upwards of $50 or more per candle. Generally, factors like container type, wax quality, fragrance notes, and branding dictate the retail price points for scented candles.
Should You Sell Scented Candles Online?
Selling scented candles online has many advantages compared to brick and mortar retail. The global reach of ecommerce opens up opportunities to sell to customers all over the world. You can run your business from anywhere with an internet connection, without the overhead costs of a physical storefront. An online shop also allows you to offer a wider selection of candle scents and designs since you don’t have the space constraints of a retail location. Customers appreciate the convenience of shopping for candles anytime, anywhere online. Many people enjoy browsing for gift items like candles from the comfort of home.
However, there are some challenges with selling online too. You’ll need to pay extra attention to product photography and descriptions since customers can’t smell or touch candles before buying. Shipping costs and logistics take more coordination online. You’ll also be competing with all the other online candle shops, so standing out takes unique branding and marketing. Some customers still prefer the in-store shopping experience when buying gifts and home decor items like candles.
Scented candles attract a wide range of customers online. Candles make popular gifts, so you’ll get shoppers looking for presents for birthdays, holidays, weddings, etc. Home decorators buy candles to enhance their living spaces with pleasant scents and ambiance. Candle enthusiasts and hobbyists seek out rare, unique scent creations. Eco-conscious shoppers look for all-natural soy and beeswax candles. Across all types of customers, the convenience and selection of online candle shopping keeps bringing people back.
Developing Your Candle Brand and Products
One of the most exciting parts of starting a candle business is developing your brand’s look and feel. This includes selecting fragrance notes, perfecting your recipes, and designing your branding, packaging and labels to reflect your brand identity.
When formulating your candle scents, think about fragrance trends and seasonal releases. You’ll want a selection of crowd-pleasing, universal scents like clean cotton and vanilla, as well as more unique signature scents that set your brand apart. Spend time testing candle recipes, wick types, wax blends, and jar styles to find the perfect burn and scent throw for each candle.
Your branding and packaging play a huge role in attracting customers and conveying your brand story. Come up with a memorable business name and logo that communicates your brand vision. Design aesthetically pleasing labels that feature your brand name, candle name, fragrance notes, size, burn time and care instructions. Use cohesive colors, fonts, patterns and materials across your product line. From visually stunning packaging to enticing scent profiles, every detail should reinforce your brand identity.
By taking the time to thoughtfully develop captivating candle scents and products, you can create a polished, professional brand that connects with customers.
Setting Up Your Online Candle Shop
One of the most important steps in starting an online candle business is setting up your ecommerce website and online shop. This will be the platform you use to sell your products, so you’ll want to make sure it provides a seamless shopping experience. When building your ecommerce website, there are a few key things to consider:
Building your ecommerce website
Choose a website builder that allows easy customization and has features tailored for online shopping, like shopping carts, product galleries, and inventory management. Popular options include Shopify, Wix, and Squarespace. Make sure your website has an attractive, professional design that aligns with your brand image. Optimize product pages and create compelling product descriptions, photos, etc. to showcase your candles.
Payment processing and shipping logistics
Integrate secure payment gateways like PayPal or Stripe to handle transactions. Make accepting payments easy by offering options like credit cards, PayPal, Apple Pay, etc. Configure automated shipping rates and set up relationships with shipping carriers like USPS, UPS, or FedEx. Establish efficient order fulfillment operations.
Transaction security
Use HTTPS on your website and enable SSL certificates to encrypt payment info. Set up firewalls, monitor for threats, and install security plugins. Enable customer account creation so order data is associated with a username and password. Follow PCI compliance standards for safely handling sensitive customer payment data.
Marketing and Promoting Your Candles
When starting an online candle business, marketing and promotion are essential for getting your products seen. Here are some of the top strategies for marketing candles online:
SEO Optimization
Search engine optimization (SEO) helps people find your candles when searching online. Optimize your website and product pages with relevant keywords in titles, headers, content, alt text, etc. Produce blog and video content focusing on keyword topics. Build backlinks from high authority websites. These efforts can increase organic traffic.
Social Media Marketing
Promote your candle shop and products across social platforms like Facebook, Instagram, Pinterest, and TikTok. Share beautiful photos and videos of your candles. Engage followers with polls, contests, and behind-the-scenes content. Use hashtags and tags to extend reach. Paid social ads can also effectively target interested buyers.
Email Marketing & Retargeting
Collect email addresses to build a subscriber list. Send targeted promotions, new product announcements, and other updates to nurture leads. Email automation and segmentation improve open and clickthrough rates. Retarget people who visited your site with display ads to keep your brand top of mind.
With the right marketing mix, you can raise awareness for your candles and drive sales from new and returning customers through multiple channels.
Financial Considerations
When starting an online scented candle business, there are some financial considerations to keep in mind. Here are some of the main costs involved:
Initial Costs
To get your business up and running, you’ll need to invest in materials, supplies, inventory, and your online shop. Some initial costs may include:
- Candle making supplies like wax, fragrance oils, wicks, jars/containers
- Labeling and packaging materials
- Domain name and web hosting for your online store
- Shopping cart and payment processing set up fees
- Product photography
- Initial inventory to launch your product line
Plan for an initial investment of a few thousand dollars to cover these startup costs. Buying in bulk can help lower your average costs per unit.
Ongoing Costs
Once your business is up and running, you’ll have regular ongoing costs including:
- Ecommerce software subscriptions for your online shop
- Cloud storage fees for media
- Advertising and marketing expenses like Google/Facebook Ads, influencer campaigns
- Shipping and fulfillment costs
- Credit card processing fees
- Accounting, legal, or consulting fees
- Inventory replenishment
Factor these recurring costs into your pricing and financial planning. As your sales volume increases, your variable costs like advertising and shipping will also rise.
Profit Margins
Many small candle businesses price their products at 3-5x their material costs to build in a healthy profit margin. So if it costs $2 in materials to make a candle, it could retail for $6-$10. Luxury candles often retail for $20-$30 and higher.
Wholesale pricing for retailers is usually 50% of MSRP. Building an audience and selling direct-to-consumer through your own online shop will yield the highest profit margins.
Monitor your margins closely as you scale production. Look for ways to lower material and shipping costs through bulk ordering and fulfillment optimization to boost net profits.
Scaling Your Business
As your online candle business grows, you’ll likely need to scale up your operations to meet increasing demand. Here are some ways to expand your business:
Expanding your Product Catalog
Consider expanding your scent catalog by creating new candle scents and products like wax melts, room sprays, and gift sets. This gives customers more options to choose from. You can also expand into complementary home fragrance products.
Wholesale and Retail Opportunities
Look for opportunities to sell your products wholesale to boutiques, gift shops, and other retailers. This expands your reach beyond just online sales. You may need to offer special pricing and packaging for wholesale orders.
Hiring Help as Needed
As order volumes grow, consider hiring help for production, fulfillment, customer service, and administrative tasks. This allows you to focus on growing the business while ensuring operations run smoothly.
With strategic growth and scaling, you can turn your small home-based candle business into a thriving company.
Complying with Regulations
When selling scented candles online, you’ll need to comply with certain regulations for safety, labeling, testing, business licensing, and sales tax. Here are some key things to keep in mind:
For safety, make sure your candle vessel is sturdy enough to contain the heat of the candle. Use candle holders to raise the candle off any flammable surfaces. Include safety instructions on proper use and precautions. Follow lead-free wick guidelines and keep wicks trimmed to 1⁄4 inch.
For labeling, include the company name, candle name, fragrance, weight/volume, cautionary info, and ingredients list. List any allergens. Indicate if the candle contains any phthalates, which are restricted in some states.
For testing, evaluate burn time, fragrance throw, and testing for issues like tunneling. Retest with revisions. Consider third-party testing to ensure safety and regulatory compliance.
Check your state and local requirements for business licenses and permits related to manufacturing and ecommerce sales. You may need a sales tax permit, and will need to collect and remit sales tax in any states where you have a physical business presence (“nexus”).
Stay up-to-date on regulations like California’s Clean Air Act, which introduced restricted limits on VOC emissions from candles sold there. Manufacturing within California brings added compliance considerations.
By thoroughly understanding and complying with candle regulations and being forthcoming in your business practices, you can operate a safe and legal online candle company.
Conclusion
Selling scented candles online can be a very rewarding and profitable business venture. From developing your brand and products to setting up your online shop, marketing, and scaling – with the right approach, passion, and diligence, your candle business can thrive.
The online scented candle market will likely continue to grow as more consumers shop online and appreciate handmade, artisanal products. However, standing out requires creativity, a quality product, and effective marketing. As the space becomes more competitive, building a loyal customer base will be key. There are also opportunities to expand your product line into related home fragrance products.
If you feel ready to pursue your passion for scented candles, take the first step by outlining your business plan and product offerings. Consider starting small to test the market, and reinvest profits to grow the business. With diligent work and perseverance, your handmade candles could become beloved by customers around the world.
For more tips and strategies on starting an online scented candle business, check out the rest of this guide. Don’t let anything hold you back from making your candle dreams a reality!
