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You must learn character customization on your game engine. I like composition method. Each body part as a gameobject, animate it on Unity animator, and in runtime just swap the sprite.

Manual method you must do frame-by-frame animation on sprite editor (Aseprite/Pixel Studio/Photoshop) which slower to make and bad in some conditions

I meant do you have hair and clothing sprite sheets that we can overlay, I've seen some creators refer to it as the "paper doll method" or something like that

I’m still considering it, not all devs have the same approach when it comes to skin swapping. And what you meant is more suitable for skeletal animation, it’s less suitable for frame-by-frame animation (it would need to be combined, as I mentioned before)