When you look at a product in the supermarket, what’s the first thing you notice? Well, it’s the colour of the product, packaging and the labels that have been printed on the product. It is essential to understand that labelling plays a massive role in the marketing, sale and promotion of a product. 

In this article, we will look at everything you must know about labelling and a quick guide on how you can establish a labelling strategy for your small business. Let’s get started. 

What Is Labelling? 

Labelling refers to simply putting a label on the product in layman’s terms. As simple as it may seem, a label refers to a tag, a wrapper or a seal that gives essential details about the product that is useful to the customers. For most products, the label acts as a factor that influences the purchase decision of customers. 

The primary aim behind pasting labels on the product’s packaging is to ensure that the customers are aware of all the ingredients involved in the product. Customers need to be fully aware of the product before consumption. In addition to that, a label also helps aid the recognition of the product or the industry. A label is designed so that it gives away details of the product and the industry to which it belongs. 

You must have noticed that some food products have a green square label, while the rest have a red square label. These miniature labels are placed at either the bottom or top corners of the product. The former indicates that all the ingredients used in the product are 100% vegetarian, while the latter suggests that the ingredients used in the product are non-vegetarian. Hence, different types of labels are used on products, and each one has its purpose. 

What Are The Different Kinds of Labels Used For Packaging?

Now that we have understood the meaning of labelling, we need to look at the different kinds of labels. The major types of labels used in small businesses are as follows. 

  1. Branding Labels – A brand label refers to a label that includes complete information about the brand. A brand label usually carries information such as the product details, details of the sister brand and the parent brand. It also holds the brand’s logo, the brand message and other trademarks. 
  2. Descriptive Labels – A descriptive label is a label that provides all kinds of product information such as usage instructions, cooking instructions, and storage and reuses information about the product. 
  3. Grade Labels – A grade label is a label that contains details about product quality and shows if it qualifies for the industry and legal standards set by the respective boards. A product may have a grade label classified as A, B, C and D, where A can be considered a great product and D is a better product.

Why is Labelling Important For Small Businesses? 

For every small business, advertising, branding, and marketing are essential elements, and each element is equally important for the product. 

Let us understand the importance of labelling for small businesses in light of these components. The significance of labelling is as follows:

  • Creates a Long-Lasting Impression – We’ve heard the saying, ‘First impression is always your best impression’. Similarly, for products, the first thing that catches the eye of the customer is the labelling and packaging of the product. You must ensure that the product’s label gives a gist of your information about the product and is also attractive and impresses your target market.
  • Helps With Product Identification – Another significance of labelling is that it helps with brand and product identification. Your labels must be made to be precise and to enable instant identification. The label must have an interactive and practical design. 
  • Depicts the Grade of Items – The next importance of labelling is that it helps illustrate your product’s quality and quantity. These grade labels help distinguish your product from the rest available in the market.

What Are The Best Labels For Small Business Owners

The product market has been expanding over the last decade itself. Let us look at the different labels for all small business owners. The different types of brands are as follows:

  • Paper Labels – Paper labels are the most simple and affordable option available in the market. Most small business owners resort to using paper labels because of the affordability and ease of access. Suppose you chose a paper label as an option for your small business. You must ensure that you have additional options, such as shipping pouches to put the shipping label inside and place it on top of the product. 
  • Thermal Transfer Labels – Thermal transfer labels are a unique labelling technique. To use a thermal transfer label, you must ensure that you use wax ribbons to transfer the shipping label on your product. This is an effective way to share the thermal labels onto your product. 
  • Direct Thermal Labels – A natural thermal label mainly uses heat instead of ink. It is a label option used when the volume of the products to be shipped is of a higher volume and importance. However, it may not be suitable for most small business owners. 
  • Adhesive Labels – For most small businesses, adhesive shipping labels have become a more practical option. Since adhesive labels already have the glue and label conjoined together, it takes a second to place the label onto the product. Since it is an adhesive label, it is easier to affix the label onto the product and is smear-resistant. 


In today’s world, the consumer goods market is rapidly expanding, and new products are being put out on the market every day. Hence, it is vital for business owners to carefully pay attention to their branding and product advertising. 

You need to pay significant attention to labelling and the product’s packaging because it creates the first impression of your product to your potential customers. We hope this article helps you create a unique and attractive label for all your products. Read our article ‘What is Brand Positioning+Examples’ to better create a brand identity for your small business.

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