Correct labeling for body care products is an important point for Etsy sellers, just as it is essential to follow the state and federal regulations. Author of the book Soap and Cosmetic Labeling, Marie Gale has compiled a helpful list of state regulations that apply to handmade soaps and cosmetics, like extra licenses or inspections. For example, California prohibits the sale of cosmetics or ingredients that have been tested on animals. In Nevada, all cosmetic manufacturers must pass an inspection and pay $300 for an annual permit.
Etsy Policies
Etsy’s policy prohibits the sale of drugs or medical drug claims about an item: “A medical drug claim makes a correlation between a product and the cure or relief of a health condition or illness. In many cases, an item itself is not problematic, but the way it is presented with certain language is against this policy.”
Etsy also prohibits human remains or body parts from being sold on the site: “This includes, but is not limited to, things such as skulls, bones, articulated skeletons, bodily fluids, preserved tissues or organs, and other similar products. (Note: Human hair and teeth are currently allowed, so long as the items comply with other Etsy marketplace rules.)”
Business Insurance & Legal Matters
Homeowner’s insurance generally doesn’t cover a cosmetics business operated in the home. For example, let’s say a customer sues you over an allergic reaction to your lotion. You will personally be held liable for damages paid as well as all lawyer fees in the case. If your home flooded and you lost all your equipment, your homeowner’s insurance won’t cover your lost wages, but a good business insurance plan would. Teach Soap shares some great advice on business insurance for your cosmetics business.
Deciding whether or not to purchase business insurance is a main concern for sellers of body care products. “In today’s modern world you can never be too careful,” Schult advises. “When we inquired about business insurance, we realized that many insurance companies don’t want to touch small businesses that focus on bath and body care. Those who are thinking about getting insurance will have to do some research. It took us a while to find something that worked for us. We also have a business lawyer, which I think is important.”
When you don’t even know if your business will succeed, weighing the cost of business insurance or a business lawyer is a personal decision, Schult says. “All state laws vary, so if you choose to start a bath and body business, check into your specific state laws and what is required,” she recommends.
Alicia Schult of LBCC Historical Apothecary strongly advises body product sellers to keep careful records from their ingredients suppliers. “They should all have batch numbers that need to be cataloged for your batches, and you should have personal batch numbers as well,” she says. “Keeping the proper paperwork is so important when making bath and body products.”
Kristina Strain, the owner of Etsy shop BadgerFace Beauty, agrees that sellers should have business insurance. “Running a business is a risk, there’s no doubt about it,” Strain says. “You want to be protected from a liability standpoint. You also want to be covered if you yourself get sick or hurt. Working for yourself, there’s no one to cover for you if you’re down for the count.”
Schult says she started off with historical labels, and there weren’t any ingredients listed on them as they were all listed on the product listing. “The more we learned, the more our labels changed,” she says. “Our goal has always been to keep the original labels, but update them with modern labeling needs. Labeling basics include your business name/logo, your town of operation, the product weight, a list of ingredients (trade secrets have an exception), directions on how to use (in some cases), and a batch number (if you have it).”
Schult does not include an expiration date on products, but her shop recommends products that should best be used within a year. “You always have to stay on top of labeling regulations because they are always changing,” she says. “It’s really important that you stay away from making healing claims about your products. We talk about how they were used historically, but we don’t claim anything. We let customer reviews cover that area.”
Packaging and Shipping
Packaging body care products for shipment has been a learning process for many sellers. For instance, Monica Peralta, owner of both Balm Lady and Sugar Lips Party, has learned to switch up her lip balm formulations during hot summer months so there is less likelihood of a product melting in transit. “I have learned by trial and error, and also by listening to customer feedback,” she says. “Using environmentally friendly packaging options is important to help customers feel better about their purchase and ultimately allows us to have less waste.”
In addition to being “green” with packaging, there’s a pressure for body care sellers to offer attractive packaging. Anything you can do to add a little flair helps, says Strain. “Selling online, the customer doesn’t walk into your shop and get your ‘vibe,’ so you have to do a little extra. The unboxing experience has really become a thing since I started the business.”
For Schult, she errs on the side of less when it comes to packaging. “We don’t go to the excess of having fancy boxes, because it’s a waste of resources, and it is something the customer will throw away first,” she says. “Forgoing extreme product packaging is better for the environment and it helps keep cost low for the customer as well. Bubble wrap, unfortunately, is still necessary for our products because of the glass. We hope to see a recyclable alternative that is cost effective in the future. When at all possible we use USPS Priority mailers and boxes and always insure them because… you never know! Many choose to ship bath and body products in boxes. We use both boxes and padded envelopes.”
