Avery 5160 vs 8167 vs Custom 3x2 Labels: Which One Actually Works for Your Setup?

So you're staring at a dropdown menu of Avery template numbers, and none of them look quite right. Or your printer keeps eating the last row of labels. Or someone told you to "just use 5160" but your project needs a 3x2 layout that doesn't match any standard template.

I've been there. Multiple times. And honestly? I've wasted a lot of money figuring out which label format actually works for which situation. This isn't one of those articles that pretends there's a single best answer. Because there isn't.

Instead, I'll walk you through the three most common scenarios I've hit in the past few years—and what I'd do differently if I had to do them again.

Quick Background: The Two Main Template Families

Before we get into the scenarios, here's the short version of what you're dealing with:

• Avery 5160 – The most common address label. 1" x 2-5/8", 30 per sheet. Works in everything from Word to Google Docs to Canva. It's basically the universal label.
• Avery 8167 – A smaller return address label. 1/2" x 1-3/4", 80 per sheet. Useful for smaller items, but not as widely template-supported.
• Custom 3x2 labels – Any label that's 3" wide by 2" tall. Not an Avery standard size (their closest is the 5163/8163 at 2" x 4", which is different). This is where things get tricky.

Now here's what I actually learned the hard way.

Scenario A: The "Just Use 5160" Trap (When You Shouldn't)

I once had a client project that needed 2,000 shipping labels for a product launch. The team lead said, "Just use 5160, it's the standard." And I—being new and not wanting to question the boss—went with it.

Here's the thing: 5160 works great for address labels. But for shipping labels that need to include barcodes, tracking numbers, and company logos in a readable format? The 1" height is brutal. Text gets compressed, barcodes come out too small to scan reliably, and you're fighting with font sizes the whole time.

I'd say about 80% of the time I see someone struggling with label formatting, it's because they're using 5160 for something that needs a bigger label. The template availability is tempting, but cramming content into a space that's too small is a recipe for reprints.

If you're in this boat:

• Use 5160 only for what it's designed for: Name tags, basic address labels, small product stickers. If your content fits comfortably in a 1" x 2-5/8" space without squinting, go for it.
• If you need more space: Look at the Avery 8163 (2" x 4") or Avery 5366 (2-1/3" x 3-3/8"). They're not as widely templated, but they give you room to breathe.

Note: Template availability for 8163 and 5366 is good in Word and Avery's own design software, but hit-or-miss in Google Docs and Canva as of early 2025. Check before you commit.

Scenario B: The "I Need 3x2 Labels" Headache (And Why 8167 Isn't the Answer)

This one hits close to home. In September 2022, I needed 3" x 2" labels for a wine bottling run. The client wanted a clean, minimalist design with a small logo, vintage year, and varietal name. The 2" height was perfect for the bottle curve.

I searched "Avery 3x2 labels" and kept finding 8167 referenced as "close enough." It's not. 8167 is 1/2" x 1-3/4". That's 4x smaller in area. The alignment is completely different, the margins don't match, and you'll end up printing labels that are off-center or overlapping.

What I actually needed was not an Avery template at all. I needed a custom sheet layout. Avery doesn't make a standard template with 3x2 dimensions. The closest is the 5163/8163 (2" x 4"), which is a different shape entirely.

The fix: I ended up using a half-sheet label (5.5" x 8.5") and setting up a custom grid in Word. It took about 45 minutes to align, and I had to do manual test prints to get the margins right. But it worked.

For anyone needing non-standard sizes:

• If you're printing 50 sheets or fewer: Use Avery's Design & Print software and set up a custom template. It's free and supports arbitrary label sizes.
• If you're printing 100+ sheets: Consider having the label supplier preprint the labels to your specs. The cost difference per label is usually negligible for runs over 500 labels (prices vary by vendor; get quotes before assuming).
• If you're using Google Docs or Canva: You'll likely need to use an Avery-compatible blank label sheet and manually adjust margins. Expect to waste 1-2 sheets getting alignment right.

Scenario C: The "8167 Seems Efficient" Misconception (That Cost Me $450)

Okay, this one still stings. In Q1 2024, I was prepping return address labels for a direct mail campaign. 4,000 pieces. I thought using 8167 (80 per sheet instead of 30) would save paper and look more professional.

Turns out, it was a disaster for two reasons:

1. The print alignment was finicky. The small label format (1/2" x 1-3/4") means any paper shift in the printer tray gets magnified. About 15% of my first run had labels that were slightly off-center.
2. The adhesive wasn't ideal for the envelope texture. 8167 is a standard removable adhesive. On glossy envelopes, about 10% of the labels didn't stick well and started peeling within a week.

Had 2 hours to decide before the deadline for rush processing. Normally I'd test a sample first, but there was no time. Went with 8167 based on trust alone. $450 wasted on a full reprint with 5160 labels (larger, more forgiving, and better adhesive for that envelope type).

If you're eyeing 8167:

• It works best for: Small, lightweight items like CD sleeves, small envelope return addresses, or product labels for flat packaging.
• Avoid it when: Your envelope has texture, your surface isn't perfectly flat, or you need high label-to-label alignment precision (like for barcode scanning).
• Test first: Print a single sheet on plain paper and check alignment against the label positions before loading the actual labels. I know this sounds basic, but I skipped it and paid for it.

How to Decide Which Format Fits Your Situation

Here's the framework I now use before ordering any labels. It's saved me from at least a few bad decisions since I implemented it after the 8167 disaster.

Ask yourself these questions:

1. How much text needs to go on each label? If it's more than 3 lines or includes a barcode/logo, go with a larger format (5160 or bigger).
2. What surface is the label going on? Standard paper envelopes work with most adhesives. Plastic, glass, or textured surfaces may need permanent or extra-strong adhesive. Check the label's adhesive type before ordering.
3. What software are you using? If you rely on Canva or Google Docs templates, stick to 5160. Anything else will likely require manual setup or Avery's own tool.
4. How many labels do you need? For runs under 500, the label cost difference between formats is small—don't over-optimize for sheet count. For runs over 2,000, the paper savings of 8167 might matter.

So glad I started using this checklist. Almost ordered 3,000 more 8167 labels for another project last week, which would have been a repeat of the adhesive issue. Dodged a bullet when I double-checked the envelope type before approving the order.

At the end of the day, labels aren't complicated—until they are. The right format depends entirely on your content, surface, and software. Take 10 minutes to map that out before you buy, and you'll save the headache of peeling 1,500 misaligned labels off a desk at midnight. I speak from experience.