Candle Inventory Tracking: Spreadsheet vs. Software

Last updated: January 2026

Every candle maker starts with spreadsheets. And every growing candle maker eventually hits the wall where spreadsheets break down—missed reorders, stock discrepancies, hours wasted on manual updates.

This guide covers what you actually need to track, when spreadsheets stop working, and how to decide if software is worth the investment.

In this guide:

• What you need to track (raw materials, finished goods, supplies)
• When spreadsheets work and when they break down
• FIFO vs. LIFO for cost accounting
• Tracking methods compared (with pricing)
• Key features to look for in inventory software
• Common inventory mistakes to avoid

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What You Need to Track

Candle businesses have three types of inventory:

1. Raw Materials

Everything you use to make products:

Category	Examples
Waxes	Soy wax, coconut wax, paraffin, blends
Fragrance oils	Individual scents (often 50-200+)
Containers	Jars, tins, vessels by size
Wicks	By type and size
Accessories	Lids, warning labels, wick stickers
Packaging	Boxes, tissue, tape, thank you cards

2. Finished Goods

Products ready to sell:

Category	Examples
Candles	By scent, size, container type
Wax melts	By scent, pack size
Diffusers	By scent, size
Bundles/gift sets	Pre-packaged combinations

3. Supplies (Not in Products)

Things you use but don't sell:

• Pouring pitchers
• Thermometers
• Heat guns
• Scales
• Cleaning supplies

Most inventory tracking focuses on raw materials and finished goods. Supplies can be tracked loosely or just reordered as needed.

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The Spreadsheet Stage

Every business starts here. A simple Google Sheet or Excel file tracking:

• What you have
• What you've used
• What you need to reorder

Basic Spreadsheet Structure

Raw Materials Tab:

Item	SKU	Supplier	Unit	Qty on Hand	Reorder Point	Cost/Unit
Golden Brands 464 Soy	WAX-464	CandleScience	50 lb	3 bags	2 bags	$45.00
Apple Harvest FO	FO-APL	CandleScience	16 oz	2 bottles	1 bottle	$12.99

Finished Goods Tab:

Product	SKU	Qty on Hand	Qty on Etsy	Qty Reserved
Apple Harvest 8oz	CAN-APL-8	24	12	0
Pumpkin Spice 8oz	CAN-PSP-8	18	8	2

When Spreadsheets Work

Spreadsheets are fine when:

• You have fewer than 20-30 SKUs
• You sell on one platform
• You make batches occasionally (not daily)
• You're the only one updating inventory
• You're willing to manually update after every sale

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When Spreadsheets Break Down

Sign 1: You've Oversold

Customer orders a candle you thought you had. You don't. Now you're apologizing, refunding, and damaging your reviews.

Why it happens: Etsy sold 3 candles while you were at a craft fair. You sold 2 more at the fair. Your spreadsheet says you have 5. You actually have 0.

Sign 2: You're Always Running Out

You go to make Apple Harvest candles and realize you're out of that fragrance oil. When did you use the last of it? Who knows—you forgot to update the sheet.

Sign 3: Inventory Counts Don't Match

Your spreadsheet says 47 jars. You count 39. Where did 8 jars go? Breakage? Theft? Data entry errors? You'll never know.

Sign 4: You're Spending Hours on Updates

Every sale means: update finished goods, mentally calculate raw materials used, check reorder points. Multiply by 20+ sales per week.

Sign 5: Multi-Channel Chaos

You sell on Etsy, your website, and at markets. Each channel has its own "inventory" that doesn't sync. Oversells become constant.

Sign 6: You Can't Calculate Actual Costs

What's your true cost per candle this month? Which fragrance oils are you using fastest? Which products are most profitable? Spreadsheets make this hard to answer.

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FIFO vs. LIFO: Why It Matters

FIFO (First In, First Out): Use oldest inventory first. Important for products with expiration concerns (fragrance oils can degrade).

LIFO (Last In, First Out): Use newest inventory first. Rarely makes sense for candle making.

Why this matters for costing:

You bought wax at $40/bag in January and $50/bag in June. When you make candles in July, are you using $40 wax or $50 wax?

• FIFO says $40 (using January wax first)
• LIFO says $50 (using June wax first)

Your cost-per-candle calculation changes. For taxes and profitability tracking, consistency matters.

Most candle makers should use FIFO—it matches physical reality (you probably ARE using older materials first) and fragrance oil shelf life (typically 1-4 years depending on storage).

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Inventory Tracking Methods Compared

Option 1: Spreadsheets (Free)

Pros:

• Free
• Flexible
• You control everything
• No learning curve

Cons:

• Manual updates after every sale
• No automatic reorder alerts
• No multi-channel sync
• Easy to make errors
• Time-consuming at scale

Best for: Under 30 SKUs, single sales channel, occasional batches

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Option 2: Craftybase ($20-99/month)

Pros:

• Built for makers
• Etsy/Shopify integration
• Automatic material deduction
• COGS tracking
• Manufacturing logs

Cons:

• Learning curve
• Can be complex for simple needs
• Recipe/formula features are basic
• No IFRA tracking

Best for: Established businesses selling 50+ units/month

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Option 3: Inventora (Free-$23/month)

Pros:

• Simple interface
• Built for handmade
• Shopify/Etsy sync
• Free Hobby plan available
• Lower price point ($19-23/month for paid plans)

Cons:

• Newer platform (less mature)
• Fewer integrations
• No IFRA compliance features

Best for: Small to mid-size operations wanting simplicity

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Option 4: Generic Inventory Software

Options like Sortly, inFlow, or Cin7.

Pros:

• Robust features
• Multi-channel sync
• Barcode scanning

Cons:

• Not built for makers
• No recipe/formula concept
• No material-to-product linking
• Often expensive

Best for: Product businesses without manufacturing component

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Option 5: PetalMade

Built specifically for candle, soap, and skincare makers.

Includes:

• Recipe management with material linking
• Automatic IFRA compliance checking
• Batch tracking with lot numbers
• Multi-channel inventory sync
• True cost calculations

→ Start Your Free Trial

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Key Features to Look For

When evaluating inventory software, prioritize:

1. Recipe/Formula Management

Can you define a "product" as a combination of materials? When you log production of 24 candles, does it automatically deduct wax, fragrance, wicks, and jars?

2. Material-to-Product Linking

Does the system understand that making one "Apple Harvest 8oz Candle" uses 8oz wax, 0.64oz fragrance, 1 wick, 1 jar, 1 lid, and 1 label?

3. Low Stock Alerts

Will it notify you when materials drop below reorder points? Before you're completely out?

4. Sales Channel Sync

Does it connect to Etsy, Shopify, or your website? Does it update inventory across all channels when you sell?

5. Batch/Lot Tracking

Can you record "Batch 2024-127 used Golden Brands 464 Lot #5847"? Essential for wholesale and recall readiness.

6. Cost Tracking

Does it track material cost changes over time and calculate true COGS per product?

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Setting Up Inventory Tracking (Any System)

Step 1: Count Everything

Do a complete physical inventory count. Yes, everything.

• Every bag of wax
• Every bottle of fragrance
• Every jar, lid, wick, label
• Every finished candle

This is your starting point. Everything else builds from accurate opening counts.

Step 2: Create Material Records

For each material, record:

• Name and SKU
• Supplier
• Unit of measure (oz, lb, each)
• Current quantity
• Reorder point
• Cost per unit
• Notes (lot numbers, expiration)

Step 3: Create Product Recipes

For each product you make:

• Name and SKU
• Materials used (with quantities)
• Expected yield per batch
• Wholesale price
• Retail price

Step 4: Establish Workflows

Define when and how inventory gets updated:

• After every batch → Log production
• After every sale → Deduct finished goods (or auto-sync)
• Weekly → Physical spot checks
• Monthly → Full inventory reconciliation

Step 5: Set Reorder Points

For each material, set a reorder point:

Reorder Point = (Daily Usage × Lead Time) + Safety Stock

Example:

• You use 10 lbs wax per week (~1.4 lbs/day)
• Supplier takes 5 days to deliver
• Safety stock: 1 week supply

Reorder point = (1.4 × 5) + 10 = 17 lbs

When wax drops below 17 lbs, reorder.

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Common Inventory Mistakes

Mistake 1: Not Counting Regularly

"I'll count next month" becomes "I haven't counted in 6 months." Small errors compound.

Solution: Weekly spot checks of top 10 materials. Monthly full count.

Mistake 2: Ignoring Waste and Samples

You make a batch of 24 candles but 2 have flaws. You give away 3 as samples. Your inventory is off by 5 if you only logged "made 24, sold 19."

Solution: Log waste and samples as separate transactions.

Mistake 3: Not Tracking by Batch/Lot

Customer complaint about a candle from 3 months ago. Which batch was it? What materials were used? No idea.

Solution: Assign batch numbers and record materials used per batch.

Mistake 4: Separate Systems That Don't Sync

Etsy manages Etsy inventory. Your spreadsheet manages "real" inventory. They disagree.

Solution: One source of truth that syncs everywhere.

Mistake 5: Tracking Too Much Detail

Every wick sticker, every inch of tape, every drop of dye. Tracking $0.02 items for 10 minutes each wastes more than they cost.

Solution: Track expensive/critical items precisely. Estimate or bulk-track cheap consumables.

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When to Invest in Software

Stay with spreadsheets if:

• Under 30 products
• Under $2,000/month revenue
• Single sales channel
• You enjoy the manual process
• Budget is extremely tight

Upgrade to software if:

• 30+ products OR growing fast
• Multi-channel sales (Etsy + website + markets)
• Oversells are happening
• Costing is getting complicated
• You want your time back
• You're wholesale or considering it

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Key Takeaways

1. Track raw materials AND finished goods — both matter
2. Spreadsheets work until 30+ SKUs or multi-channel sales
3. Overselling is the clearest sign you need better systems
4. Recipe/formula linking is essential for maker businesses
5. FIFO matches how you actually use materials
6. Physical counts keep data honest
7. Reorder points prevent running out

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Frequently Asked Questions

When should I switch from spreadsheets to software?

The clearest sign is overselling—when you sell products you don't have in stock. Other indicators: spending more than 2 hours/week on inventory updates, selling on multiple channels without sync, or having 30+ SKUs to track.

What's FIFO and why does it matter for candle makers?

FIFO (First In, First Out) means using your oldest inventory first. For candle makers, this matters because fragrance oils have a shelf life of 1-4 years. Using older materials first prevents waste and ensures accurate cost tracking when material prices change.

Do I need to track every single item?

No. Focus on expensive and critical items (wax, fragrance oils, containers). For cheap consumables like wick stickers or tape, track loosely or bulk-order when low. Spending 10 minutes tracking $0.02 items wastes more than they cost.

How often should I do physical inventory counts?

Weekly spot checks of your top 10 materials (most used or most expensive). Full physical count monthly. This catches discrepancies before they compound into major problems.

What's the most important feature in inventory software?

Recipe/formula management with automatic material deduction. When you log making 24 candles, the system should automatically deduct wax, fragrance, wicks, jars, and lids based on your recipe. Without this, you're still doing manual calculations.

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Stop Fighting Spreadsheets

PetalMade is built specifically for candle, soap, and skincare makers—with recipe management, automatic material tracking, IFRA compliance, and multi-channel sync in one tool.

Start Your Free 14-Day Trial →

No credit card required.

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