The following is from Etsy seller Barking Dog Designs Flickr album...
The top woven label was ordered from Everest Label.
The type on the bottom cloth label was typeset with InDesign, but any word processing or page layout program would work as well. The "Do Not Wash" symbol was drawn in Illustrator and imported. The label was printed on my inkjet printer using June Tailor Colorfast Sew-In Inkjet Fabric Sheets. The sheets are made of white woven cloth and are available at JoAnn's in a 10-pack.
The content label measures 1" wide x 2-13/16" long. When folded, the label measures 1" wide x about 1-7/16" long. There is 1/4" allowance at the top and bottom for sewing into the seam. After the label has been sewn into the seam, the visible portion is only about 1-1/8" long (about the size of a quarter). The labels are easily cut apart with a straightedge and a rotary cutter.
The RN (Registered Identification Number), obtained free of charge from the Federal Trade Commission, takes the place of the company name and address to conserve space. The number below the RN is my Stuffed Toy License registration number which is required to sell stuffed toys in the states of Pennsylvania and Ohio. The month and year change according to the production date of the finished items.