Why Product Labeling for Businesses Is More Important Than You Think

Around 60% of consumers will decide what product to buy based on its packaging and labeling.

How your product looks has a direct correlation to your sales. To attract consumers, you need to stand out from the noise on the shelf through attractive and memorable product presentation.

Product labels can help you leverage the visual nature of what you sell to generate more sales while remaining compliant.

Here’s a look at how product labeling can lift your marketing to help you establish your brand.

What Is Product Labeling?

A product label is the information written on a product’s packaging. A label conveys critical information to consumers.

A product’s label can vary in design from being a few lines to covering the whole back. All the items that go into making a product label come from a regulatory body.

Several regulatory bodies cover various industries. The Food and Drug Administration (FDA), for example, includes food products and even cosmetics.

Here’s an example of the FDA’s labeling requirements for a cosmetic product that any manufacturer will need to factor in when designing their product label.

Any product you launch has to meet the labeling requirements in its country of origin.

What's the Difference Between Product Packaging and Labeling?

Many businesses confuse packing and labeling, and it's not hard to see why. The degree of difference between the two is rather small.

The main difference between the two is that packaging is how the product looks while labeling is the writing on the packaging.

Let’s take a food product like noodles. The packaging will consist of the color used to brand the product, logo, packing material used, and positioning of the labeling retreatments.

The product label, on the other hand, will consist of instructions on how to cook the noodles. The location information along with the ingredients is also part of the product label.

The regulatory body's requirements will inform what ends up on your label for each product you make.

If you have ten different stock keeping units of the same type of product, your packaging will vary depending on your brand strategy. The labeling, however, will mostly be consistent since similar materials go into making the products.

While both ultimately work on presentation, the label is more focused on conveying mandated information. Packaging will center around presenting the product attractively and memorably to consumers in wrapping that’s also easy to use.

Another vital area of differentiation is in the design. As you design the packaging, you’re looking to attract the consumer. Visual distinction is your goal, with most of the input being up to you.

With labels, the design leans towards being simple for clear communication. Some regulators will even demand you order the information on your label in a particular manner.

For example, it’s common for cosmetic or food product labels to feature information in descending order. You have to conform when thinking about your label’s design.

Types of Product Labels

There are several options in the market for you to weight when picking labeling for your product. The most common ones include:

1. Dry Peel Labels

These labels can be peeled away from the packaging or product container.

Much like custom-printed stickers, dry peel labels contain an adhesive that holds them in place. However, the glue is limited enough for you to remove the label easily.

When you need to offer redeemable coupons at points of sale, then dry peel labels can work for you. These labels are also useful for providing extra copy to consumers.

To make your packaging more versatile, dry peel labels can be placed on top of another label. That way, you can display more content once consumers peel the label off.

2. Fold-Out Labels

Fold-out labels, as the name suggests, fold out to offer extra information. You can use them for redeemable coupons, just like dry peel labels.

The difference with dry peel labels is the mechanism they use to unfold. It’s an accordion-like feature you can use to break out the label.

3. Reseal Labels

As the name suggests, reseal labels are those you can reseal the packing or container the product comes with.

Here, the label is placed on top of the packaging's opening. Reseal labels have been in the market for several years, but their popularity only keeps increasing.

If you plan to add convenience and functionality to your multi-use product, consider using reseal labels. Examples include the labels on ready-to-use wipes.

4. Expandable Reseal Booklet

Expandable reseal booklet labels are a combination of fold-out and reseal labeling.

Expandable reseal booklet labels will expand out to display more content. Once the consumer reads it, they can return the label back to the packaging for later use.

These kinds of labels are popular with brands that need to add extra content to a small label panel.

Expandable reseal booklets are also employed to display detailed safety and health information or information in multiple languages.

The Importance of Labeling in Marketing

Product labels can offer several benefits that boost your marketing efforts. These include:

1. Credibility

When consumers can trace necessary information relating to things like health or ingredients, they perceive your brand to be credible. That perception can go a long way in building or cementing loyalty since they feel you are trustworthy.

2. Better User Experience

Product labels that give consumers directions on usage help you make it easier for customers to use your product. New consumers build a positive experience with this that can get them back for more since they already know how to use your product.

3. More On-Shelf Visibility

Even though product labels are meant to be simple for effective communication, you can also use them to make your products more visible. Professionally printed labels can help the rest of your packaging stand out, which potentially translates to more sales.

Stand Out From the Pack

Excellent product labeling can make life easier for your consumers, which builds on their loyalty. When using product labels, you have to balance between customer experience and compliance to ensure your product sells without offending regulators.

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