Like maybe make a fabric rectangle for the body and just attach the spools for the arms and legs, might work to do the head as a spool too, just make a smaller body...I have plenty of yarn for hair.
Any other suggestions? I've seen them as christmas tree decorations but I'm not sure if they look nice enough to sell. You know, not like your kid made it for you in sunday school class-while that is precious when your darling angel makes it for you, not quite so nice when it's for sale.