Note: This article covers licensing and regulatory requirements (food business permits, food sanitation supervisor qualification, food labeling rules, etc.) that are specific to Japan's Food Sanitation Act and Food Labeling Act. Requirements will differ in other countries.
Many people who've been making sweets for a long time have thought, "I'd like to try selling the sweets I make." These days, more and more selling platforms have become easy for individuals to use.
To turn selling sweets into an actual business, you need proper knowledge of online sales, equipment suited to confectionery manufacturing, and the qualifications required under the Food Sanitation Act.
This article gives a detailed explanation of the characteristics of each selling method — in-store and online shop — along with the licenses and equipment needed to make and sell sweets, and tips for succeeding efficiently at selling. If you're planning to start selling sweets as an individual, please read all the way through.
3 Ways to Sell Sweets as an Individual
There are three main ways to make and sell sweets as an individual. Each has its own advantages and disadvantages, and depending on the method, significant setup costs or operating costs may be involved. Carefully choose the method that fits the scale you want to sell at and your own working style.
Selling from a Physical Store
| Advantages | Disadvantages |
|---|---|
| ・Communicate directly with customers, making it easier to convey a product's appeal in detail ・Customers can actually pick up and check the product ・Easier to run initiatives like tastings that lead to purchases |
・Ongoing costs for equipment, rent, labor, and more ・Customers need to visit the store in person, which is hard for those far away |
・Customers can actually pick up and check the product
・Easier to run initiatives like tastings that lead to purchases | ・Ongoing costs for equipment, rent, labor, and more
・Customers need to visit the store in person, which is hard for those far away |
The first option is to open a physical store to make and sell your products.
As an advantage, having a store creates a place to sell your products, and customers get the convenience of buying on the spot. Since you can communicate directly with customers, you can convey a product's appeal directly, along with the maker's personality.
Another appeal is being able to run marketing initiatives only possible in a physical store, such as tastings or limited sales on items nearing their best-by date.
The biggest challenge is the setup and fixed costs involved. Costs for the storefront itself, rent, and staff wages can amount to anywhere from several hundred thousand to several million yen, depending on the case.
Also, since only people who actually visit the store become customers, attracting new customers requires real effort — for example, making the trip appealing enough for people from farther away to bother visiting.
Opening an Online Shop
| Advantages | Disadvantages |
|---|---|
| ・Easy for customers to buy without visiting a store ・No costs for a physical storefront (such as rent) ・Easier to lead new customers to a purchase using social media, etc. |
・Customers can't actually pick up and check the product before buying ・It takes time to build trust because you can't communicate directly |
・No costs for a physical storefront (such as rent)
・Easier to lead new customers to a purchase using social media, etc. | ・Customers can't actually pick up and check the product before buying
・It takes time to build trust because you can't communicate directly |
The second option is to open an online shop and sell over the internet.
The biggest advantage of online sales is being able to sell the sweets you've manufactured without a physical store. As long as you have an environment set up for making sweets, being able to manufacture and sell without costs like rent and utilities for a physical store is a major benefit.
By using social media and web advertising to increase visibility, you can find new customers willing to buy your products regardless of where they live.
A disadvantage is that customers can't actually pick up the product before buying. If you don't make an effort to clearly convey product information through photos, videos, and product descriptions, customers may end up disappointed after purchase, feeling "it wasn't what I expected."
Also, when selling relatively low-priced items like sweets or baked goods, building trust with customers and creating repeat buyers is extremely important. But since you can't communicate face-to-face in an online shop, you need to make an effort to close the distance with customers using chat or social media DMs.
Selling at Markets or Events
| Advantages | Disadvantages |
|---|---|
| ・Can make and sell products on a trial basis ・Can choose events that match your target customers ・When other vendors are also present, more chances to catch the eye of new customers |
・May need to pay the event organizer a booth fee or sales commission ・Booth space is limited, so you need to find ways to make your products stand out |
・Can choose events that match your target customers
・When other vendors are also present, more chances to catch the eye of new customers | ・May need to pay the event organizer a booth fee or sales commission
・Booth space is limited, so you need to find ways to make your products stand out |
The third option is to sell by setting up a booth at markets or events.
If you start out focused mainly on markets and events rather than a physical store, the biggest advantage is being able to keep setup and fixed costs lower than opening a store or an online shop. Some people also start with event booths as a way to test how much in sales they can expect from their target customers.
Being able to choose booth events that match your target customers is another advantage. For example, choosing a specialized event that fits your products well, such as one focused on gluten-free or organic products, lets you appeal to prospective customers who are more likely to become fans.
Disadvantages include booth fees and sales commissions charged by the event, though these are usually cheaper than the fixed costs of running a store. Also, since booth space at events is limited, you need to put effort into standing out from other vendors' products, such as spending on product POP displays or signage.
Other disadvantages include being at the mercy of the weather for outdoor events, making sales less predictable, and the difficulty of forecasting sales, which can lead to waste.
What Qualifications Do You Need to Sell Sweets as an Individual?
To protect customers' health and safety, selling food — sweets included — requires a permit from the public health center. Here are the qualifications needed to make and sell sweets as an individual.
Permit details are set at the regional level, such as by prefecture, so check with the public health center that covers your area for details.
Confectionery Manufacturing Business Permit
The confectionery manufacturing business permit is one of the business types requiring a business permit from the public health center under the Food Sanitation Act.
You cannot sell sweets without obtaining this confectionery manufacturing business permit, and doing so is a violation of the Food Sanitation Act, which can carry a penalty of "up to 2 years imprisonment or a fine of up to 2 million yen."
Also, to obtain a business permit, you must designate a dedicated "food sanitation supervisor" for each facility where you manufacture sweets.
Food Sanitation Supervisor
A food sanitation supervisor is a person responsible, under the Food Sanitation Act, for hygiene management and operations, as well as product quality checks, at a facility that manufactures or sells food.
You can become a food sanitation supervisor by completing a "Food Sanitation Supervisor Training Course" run by the prefectural governor's office or similar body.
Holders of certain qualifications, such as licensed cooks or dietitians, may be exempt from the training, so check with your local public health center in advance.
How to Create Labels Under the Food Labeling Act
The Food Labeling Act requires labeling information such as ingredients and best-by dates in order to ensure food safety and give consumers the information they need to choose products.
The specific items that must be labeled are as follows:
- Product name
- Ingredients
- Net quantity
- Best-by/use-by date
- Storage method
- Manufacturer's name and address
Image source: Consumer Affairs Agency
In addition to these six items, if certain conditions apply — such as selling at a location different from where the product was made, like an event booth — you may also need to label nutritional information for "energy," "protein," "fat," "carbohydrates," and "salt equivalent."
The size of text used on labels is also regulated, so check the Consumer Affairs Agency's website for details. Since specifications can be updated over time, make sure to always get the latest information.
Reference: Consumer Affairs Agency: Overview of the Nutrition Labeling System for Food
What Equipment Do You Need to Sell Sweets as an Individual?
The equipment needed to manufacture and sell sweets is also subject to detailed requirements. Here are the basic standards set under the confectionery manufacturing permit. Check with your local public health center to confirm whether the location you're considering for manufacturing meets the facility standards.
If you're newly renting a manufacturing location, be sure to check with the public health center before signing a lease, to confirm whether the building or space meets the conditions needed to obtain a confectionery manufacturing permit.
Facility Standards
There are broadly two types of standards required for a facility that manufactures sweets.
There are common standards, which apply to all business types, not just confectionery manufacturing, and specific standards, which vary by business type.
Common Standards
- The structure of the manufacturing/selling facility
- Food-handling equipment, such as tools used and food storage equipment
- Ventilation, cleaning, and water supply/drainage facilities, etc.
Specific Standards
- Zoning of areas for manufacturing, packaging, storage, and other tasks
- Installing mixers, ovens, packaging machines, and other equipment with a capacity suited to your production volume, etc.
Using a Shared Kitchen That Meets the Standards
A typical home kitchen cannot meet the facility standards, so you can't start manufacturing and selling sweets from one. To meet the standards, you need equipment separate from your home kitchen that satisfies the requirements, which means some level of equipment investment is needed. Maintaining that equipment also involves ongoing costs.
If you just want to try making and selling on a trial basis, or want to manufacture and sell irregularly for events and occasions, one option is to use a shared kitchen that's already equipped to meet the confectionery manufacturing facility standards. By using a shared kitchen and obtaining a permit from the public health center covering that kitchen's area, along with the food sanitation supervisor qualification, you can sell sweets you've made yourself as an individual.
What's a Good Online Shop for Selling Sweets?
For selling sweets, rather than starting with a costly physical storefront, we recommend an online shop, which is easier for individuals to start.
Here, we've picked out some recommended online shop platforms.
Shopify
Shopify is a cloud-based platform for building and running an online shop.
Its biggest appeal is that, just by choosing from a wide range of design themes, you can build an online shop that rivals a professionally built site, even without any design or coding knowledge.
Also, since features like payment processing, inventory management, and marketing tools are all included as standard on every plan, you can start selling sweets with just a Shopify subscription.
Shopify is currently popular for its high cost-effectiveness and the quality of service it provides, making it a widely chosen platform from beginners to advanced online shop operators.
BASE
Image source: BASE
BASE is also a popular platform for beginners building their first online shop, since anyone can easily build and run a shop with it.
Compared to Shopify, its site templates and marketing tools are somewhat more limited, but it has low costs, with no initial or monthly fee, and lets you run your online shop paying only a payment processing fee, service fee, and payout transfer fee when a product sells.
What About Marketplace-Type Online Shops?
You can also open a shop on marketplace-type platforms like "Rakuten Ichiba" or "Amazon."
Because marketplace-type online shops have a large number of users, they offer a benefit in customer acquisition compared to running your own shop, giving your products more chances to be seen by many people.
However, since there are also many other vendors, you need to find ways to make your products stand out and rank higher in search within the marketplace.
Tips for Succeeding at Selling Sweets as an Individual
Selling sweets on a small, individual scale requires various efforts to manufacture and sell efficiently. Here are three points for successfully making and selling sweets as an individual.
Cost-Free Customer Acquisition Using Social Media
Social media is now such a mainstream marketing method that posting on social media has become almost a requirement for running a shop.
More and more customers gather information from social media and choose a shop based on word of mouth and reviews.
Social media can be used for various purposes, such as raising awareness and acquiring customers. It's important to share information that feels relatable and useful to customers, such as information about your products and the experience they offer, using video and audio.
By posting consistently, you make it easier for your target audience to find you, which can also lead to invitations to event booths or introductions from influencers.
Reduce Waste with Pre-Orders and Made-to-Order Production
Sweets, like any food, can't be sold once they're past their best-by date. If a product doesn't sell after being made, you end up with "waste" — costs for materials and utilities with no resulting profit.
For a small, individual operation, holding inventory of manufactured sweets can itself be a risk.
To avoid this kind of risk, you need strategies to reduce inventory waste, such as manufacturing products only after receiving an order, or setting a fixed inventory amount and selling by pre-order. Using a pre-order-only, limited sales approach can also create a sense of "scarcity" or "specialness," making it an effective marketing tactic.
Example: RUMBLE CRUMBLE, a Pre-Order-Only Shop
Image source: RUMBLE CRUMBLE
Let's introduce "RUMBLE CRUMBLE" as an example of a shop that uses pre-order sales.
RUMBLE CRUMBLE presents a distinct aesthetic throughout — from its cookie creative to the story and background of how its products are made.
It uses social media and its official LINE account to announce pre-order sale dates, building relationships by communicating with customers.
Another strength is that it only holds pre-order sales a few times a year, creating a sense of "specialness" and "luxury" for customers.
Narrow Down Your Products, Like a "Specialty Shop for ___"
As the saying "good selection" suggests, it's easy to assume that offering a wide variety of products is better. But as a result, customers can end up overwhelmed with choice, and the shop can end up perceived as having no distinct identity.
By boldly narrowing your product lineup and standing out as a "specialty shop for ___," your shop gains a clear identity, appeals to a focused target audience, and becomes easier to position as the go-to place for that particular thing. Specific examples include narrowing by genre, such as gluten-free, or narrowing by product, such as a cheesecake specialty shop.
Example: Mr. CHEESECAKE, a Cheesecake Specialty Shop
Source: Mr. CHEESECAKE
As an example of success with a "specialty shop for ___" approach, let's look at "Mr. CHEESECAKE." Mr. CHEESECAKE's online shop is built on Shopify, the platform introduced earlier (as of September 2024).
It's featured in many site-building case studies, and is famous as a shop that has pushed the single product of cheesecake to the extreme, and communicates its appeal very effectively.
Start Selling Sweets with an Online Shop
This article explained how to make and sell sweets as an individual. Precisely because you're starting small, it's important to first identify the selling method that fits you.
Check the qualifications and equipment you need, and aim for sustained growth in your business by carrying out effective marketing initiatives for whichever selling method you choose — such as using social media, choosing your target audience, and refining your selling approach.
The blog article below explains in detail the process of setting up a Shopify store. Please use it as a reference.
