To (hopefully) help you better understand.
- Those items and materials that become "a part of" the product you sell, are inventory. That would probably be the oils, butters, fragrances etc. along with the Jars, bottles, labels.
-Those items that are consumed in the process of manufacturing your product could be either supplies or materials.
-Those items that are used to "prepare for sales" would include things like bubble wrap, shipping boxes, address labels, ink, etc. (also, display boxes and related materials used to display products in a store, if you actually have a store front.)
One area where folks really mess up big time, is with inventory tracking in that first year. They don't quite understand yet, that what they paid for the inventory is not deductible until the tax year they actually sell that inventory, regardless of what year they may have purchased and paid for it.
Beginning of Year (BOY) inventory balance - What *you* paid for the product you sell, that was in your physical possession on Jan 1 on the tax year. Note that in the first year of business, or the first year of dealing with inventory, the BOY Inventory balance *must* be ZERO. It flat out *does* *not* *matter* if the inventory was paid for years ago either. This is because your BOY Inventory balance "MUST" match exactly, your prior year's EOY Inventory balance. So if this is your first year dealing with inventory, the Beginning of Year Inventory Balance *MUST* be ZERO so that it matches the fact that you had no inventory on Dec 31 of the prior tax year. There are no exceptions.
Cost of Goods Sold (COGS) - What *you* paid for the inventory that you actually sold during the tax year. It flat out does not matter in what year you paid for that inventory either.
End of Year (EOY) Inventory Balance - What "you" paid for the inventory in your physical possession on Dec 31 of the tax year.