Step 1: What you'll need
Soap--Find something you think smells pretty. Rounded edges will be easier to felt.
Bubble wrap--a nice way to recycle.
Small spray bottle
Dish washing liquid (like Dawn, Palmolive)
Fill the spray bottle with warm water and add a couple of drops of dishwashing liquid.
Look for wool roving in bulk at your local yarn store--much cheaper than purchasing on line or at Jo-Ann's.
Step 2: Spread Out
Step 3: Wrap it Up
Step 4: Yeah, it looks like a Tribble
Keep the faith, this will, indeed, all felt down into a nice compact soap like the photo.
Step 5: Spritz spritz
Step 6: Get felting!
Keep at it. Stop to peek every so often, add water as needed. Work on any areas that don't seem to be shrinking.
Go on, keep working on it. Beauty takes time.
Once the now felted roving is tight to the soap you are finished.
Step 7: They sell these babies for $14 at Anthropologie
Check out altlibrary.com for other fun projects you could make in a library or at home.