Do You Need a License to Sell Handmade Soap? Points to Watch and the Benefits of Selling Through Your Own Store

Note: This article covers permits and regulations for selling handmade soap that are specific to Japan. Requirements will differ in other countries.

When you first think about selling handmade soap, the first thing that gives you pause is often, "Do I not need a license if I sell it as general merchandise?" or "Does it count as cosmetics even if it's handmade?"

For soap, the laws and labeling rules that apply are determined not by how you make it or where you sell it, but by what it's intended to be used for. Being handmade doesn't automatically mean no license is required.

This article explains the licensing and labeling rules to check before selling, how to prepare for the Product Liability Act (PL Act), and how to choose a sales channel.

Whether You Need a License to Sell Handmade Soap Depends on Its Intended Use

The first thing to decide is whether you're selling it as "cosmetics" meant to be used on the body, or as "general merchandise" not meant to be used on the body. This distinction determines both the license you need and what you must put on the label. If you sell it as laundry or dish soap, labeling rules apply instead of a license.

Soap used on the body counts as cosmetics

Soap intended to cleanse the body—for washing your face, hands, or bathing—falls under the definition of cosmetics under Japan's Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices (the Pharmaceutical and Medical Device Act, or Yakkiho). This same regulation applies whether an individual sells a small quantity, and regardless of whether it's sold through an online shop, a bazaar, or a market event.

In other words, to sell soap you made at home labeled as "for face washing" or "for the body," you first need the licenses explained next.

Selling as cosmetics requires two licenses

To make body-cleansing soap yourself and sell it as cosmetics, you generally need two licenses: a "cosmetics manufacturing license" and a "cosmetics marketing license."

The cosmetics manufacturing license is a license for the "location" where you make the soap. It assesses whether the facilities used for manufacturing, packaging, labeling, and storage meet the required standards.

The cosmetics marketing license is a license for the "business" that puts the product into the market. As the party ultimately responsible for the product's quality and safety, you're required to appoint a responsible person and establish a system for shipping decisions and recordkeeping.

Reference: Kanagawa Prefecture, "Please Be Careful When Handling Handmade Soap" (Japanese)

Labeling rules for laundry and dish soap

Laundry and dish soap are subject not to the Pharmaceutical and Medical Device Act but to the labeling rules of the Household Goods Quality Labeling Act. The required items are the product name, ingredients, pH property (acidic, neutral, alkaline, etc.), intended use, net quantity, recommended usage amount, usage precautions, and the labeler's name and contact information.

For solid soap specifically, you may be able to omit the pH property, intended use, net quantity, recommended usage amount, and usage precautions. However, ingredient labeling assumes testing methods defined by JIS (Japanese Industrial Standards). Even for handmade products, an ad hoc labeling approach won't do—check the latest labeling method on the Consumer Affairs Agency page below.

Reference: Consumer Affairs Agency, "Laundry or Dish Soap" (Japanese)

Points to Watch When Selling as General-Merchandise Soap

If you sell soap for decorative or fragrance purposes—not for use on the body or for laundry/dishwashing—as general merchandise, you need to present it in a way that avoids being mistaken for a product used to cleanse the body. Not just the intended use, but also the product name, description, and photos factor into how it's judged.

Writing "general merchandise" alone isn't enough

What's judged isn't just the wording on the label. Even if you write "general merchandise," if the product name or description evokes face washing or handwashing, the reality may be judged as selling cosmetics.

For example, a photo showing the soap placed on a bathroom sink, or words like "lather" or "how your skin feels after washing," will be read as describing a product used on the skin. If you're selling it as general merchandise, keep the wording consistent across your packaging, product page, and social media posts.

Avoid wording that suggests an effect or benefit

Phrases like "moisturizes," "sanitizes," "prevents acne," or "for sensitive skin" all claim an effect on the body. Statements that flatly assert safety, like "safe even for babies," can also be a problem if there's no basis for the claim.

The Pharmaceutical and Medical Device Act covers not just the product itself but also advertising wording. Before listing your product, review whether your product name, description, and images suggest use on the body or a specific effect. You should also check the listing rules of the sales service you use.

Note that the line between cosmetics and general merchandise often comes down to case-by-case judgment, so if you're unsure, consult your local public health center or your prefecture's pharmaceutical affairs division in advance.

Labeling and Safety Information to Prepare Before Selling

After sorting out licensing, the next thing to prepare is the information to include on your label and product page. The basics are four items: ingredients, how to use it, precautions, and contact information. If the label and product page don't match, it can lead buyers to make the wrong judgment.

Check the required ingredient labeling for cosmetics

Soap sold as cosmetics has labeling items defined under the Pharmaceutical and Medical Device Act: the marketing business's name and address, the product name, the manufacturing number or code (a number that identifies which production batch the item came from), and, in principle, the names of all ingredients used. Some products also require labeling such as an expiration date.

Under a Ministry of Health, Labour and Welfare notification, ingredient names must be listed in Japanese in descending order of the amount used. There are exceptions for ingredients used at 1% or less and for colorants, which don't need to follow this order. Carryover ingredients present in the product only at a level too low to have an effect may also be exempt from labeling.

One thing to watch for is that you can't simply use the informal name you know an ingredient by. You need to convert it to the officially designated labeling name, so check the correct wording using the Ministry of Health, Labour and Welfare's notification or an ingredient labeling name list.

References:

• Tokyo Metropolitan Institute of Public Health, "Cosmetics Labeling" (Japanese)
• Ministry of Health, Labour and Welfare, "On Methods for Full Ingredient Labeling of Cosmetics" (Notification No. Iyakushinhatsu 163 / Iyakukanmahatsu 220, March 6, 2001, Heisei 13) (Japanese)

Clearly state usage precautions and allergy information

For soap that touches the skin, add notes on where and how to use it, situations where it shouldn't be used, and what to do if a reaction occurs. Common wording includes things like "do not use on areas with cuts, swelling, or eczema" and "if any abnormality occurs, discontinue use and consult a dermatologist." Also add notes suited to your product, such as storing it out of children's reach and avoiding high heat and humidity.

If you use ingredients that commonly trigger reactions in some people, such as essential oils, herbs, or fragrances, adding a brief caution alongside your ingredient list lets buyers make their own judgment. Avoid wording like "safe because it's natural"—natural ingredients can still cause allergic reactions.

Keep precautionary notes and production records ready for PL Act compliance

The Product Liability Act (PL Act) establishes that the maker is liable for damages if a product defect injures a buyer or damages their belongings. The PL Act itself doesn't mandate specific labeling, but missing necessary precautionary notes can be judged as a problem.

Include precautions suited to how the product is used and its ingredients, and provide contact information on the product or product page so buyers can reach you even after the sale. It also helps to record the production date, the ingredients and amounts used, and the work performed for each batch, so you can identify exactly "which soap, made when." This preparation lets you narrow down the affected products if an inquiry or recall becomes necessary.

Reference: Consumer Affairs Agency, "Overview Q&A on the Product Liability Act" (Japanese)

Main Sales Channels for Handmade Soap

If you're selling soap for use on the body, besides obtaining the required licenses yourself, another option is to commission an OEM (having another licensed business manufacture your branded product) from a business that already holds the necessary licenses.

Once you're ready to sell, the next step is deciding where to sell. Broadly, there are two options: listing on a handmade marketplace like minne, or building your own shop.

However, most handmade marketplaces' terms of service don't allow listing soap that counts as cosmetics. If you're selling soap for use on the body, your own shop is effectively the main option. Only decorative or fragrance-purpose general-merchandise soap can be listed on marketplaces.

*The fees listed reflect information as of July 19, 2026. They are subject to change, so check each company's official site before signing up. Note that soap classified as cosmetics (soap used on the body) cannot be listed on minne or Creema under their terms of service (as of July 2026). The handmade marketplace column reflects a comparison for selling general-merchandise soap.

Handmade marketplaces like minne

Image source: minne

People looking for handmade items gather on platforms like minne and Creema. Even before you have a track record, you can be found through search and featured listings, and payment infrastructure is already in place, making these easy places to start selling.

However, there are restrictions on which soaps can be listed. minne prohibits selling soap intended to cleanse the body as a "work" classified as cosmetics. Even decorative soaps such as decoupage soap can't be described as intended for use on the body. Creema's terms of service similarly designate "cosmetics or items that could be used as cosmetics" as prohibited listings. Since marketplaces are effectively limited to decorative and fragrance-purpose general-merchandise soap, always check each service's latest guidelines before listing.

Fees are deducted when an item sells. minne charges 10.659% (tax included) on the per-order total of "work price + purchase option price + shipping," while Creema charges 10.67% (tax included) on the total payment amount (work, options, gift wrapping, and shipping).

Note that both apply roughly 10% to an amount that includes shipping. After subtracting material and packaging costs, what remains can be small, so set your price with the fee factored in.

Another constraint is that you don't retain a connection to your buyers. While you can see who bought from you, you can't use their contact information to announce new products or suggest a subscription. This becomes a barrier once you want to grow your base of repeat customers.

Online store builders like BASE and Shopify

Image source: BASE

Services that let you build your own dedicated online store are how you get past the "can't connect with buyers" barrier. With BASE or Shopify, you can open your own shop even without specialized knowledge. Unlike a handmade marketplace, your products aren't displayed alongside other makers' items, and you can design photos, descriptions, and layout entirely to match your own brand.

The biggest difference is that you retain your buyers' email addresses. You can record who bought from you and design your own initiatives to grow repeat customers, such as announcing new products or suggesting a subscription—a strength marketplaces don't offer.

The two representative options are BASE and Shopify, which have different pricing structures.

• BASE (Standard plan): ¥0 setup cost and monthly fee; selling and payment processing fee of 6.6% + ¥40/order.
• Shopify (Basic plan): ¥4,850/month (equivalent to ¥3,650/month billed annually); credit card payment processing fee of 3.55%.

BASE suits those who want to start without fixed costs, while Shopify suits those who prioritize functionality even if it means paying a monthly fee. When your sales are still small, BASE's lighter fee burden helps; as sales grow, Shopify's lower payment processing fee becomes more advantageous. It's a good idea to plug in your expected monthly sales and average order value to estimate which works out cheaper for you.

Shopify Is Recommended for Growing Your Brand

Image source: Shopify

While BASE excels at ease of use, Shopify is a better fit if you want to grow soap into "a product people repurchase once they've used it up." You can design detailed mechanisms for growing repeat customers, such as subscriptions, gift options, and pages that convey your brand's aesthetic.

Offer subscriptions and gift sets

Soap is a consumable that gets replaced once used up, making it a good fit for subscriptions. On Shopify, using a subscription app lets you set up recurring deliveries every month or every few months.

Buyers can also use their customer account to skip their next delivery, or pause, resume, or cancel their subscription, and change their payment method or shipping address themselves. If a buyer still has leftover soap, they can pause delivery instead of canceling right away, which also reduces the number of individual change requests you need to handle as the seller.

You can also freely design how you present your products—scent-combination sets, seasonal limited editions, or gift-wrapped items for giving. You could offer a limited-time gift set for Mother's Day or Christmas, for example. A gift card feature is also available, giving you an option for buyers who aren't sure what the recipient would like.

Convey the story and care behind your production

For handmade soap, scent and appearance aren't the only deciding factors in a purchase—why you chose certain ingredients and how you make it matter too. With Shopify, in addition to product pages, you can use static pages and a blog to share the maker's thinking, how ingredients were chosen, the production process, and gifting ideas.

Creating pages organized by series makes it easier for buyers to compare differences or buy multiple items at once. This kind of information accumulates the more you write, becoming a reason buyers choose you for something beyond price.

When building your own store on Shopify, the cost and scope of preparation required depend on your build approach.

For details on Shopify build costs and how to choose who to work with, see the following article.

What Does It Cost to Build a Shopify Store? Comparing Agencies, Freelancers, and DIY

Start Selling Handmade Soap by Checking Licensing and Building Your Sales Foundation

For handmade soap, the licenses and labeling you need differ depending on whether you sell it as "cosmetics" for use on the body or as "general merchandise" not used on the body. If you sell general merchandise as laundry or dish soap, labeling in line with the Household Goods Quality Labeling Act is also required. First clarify your intended use, then check the applicable rules before moving forward with your sales preparation.

If you sell it as cosmetics, your full preparation includes not just obtaining the license but also full ingredient labeling, usage precautions, contact information, and batch/lot management.

If you want to first gain selling experience with general-merchandise soap, a handmade marketplace is an accessible option. On the other hand, since soap sold as cosmetics can't be listed on minne or Creema, the standard approach is to obtain the necessary licenses and set up your own store. Once you've estimated fees and fixed costs and want to design your own repeat-customer initiatives and brand messaging, consider your own store on a platform like Shopify.