I haven't used grosgrain ribbon for labels but did try satin ribbon. I did not have much success with that at all. I had alot of pull and shrinkage....However, after doing much research and purchasing a tiny font instead of trying to reduce a font I had I am hoping I could still use satin ribbon. There are many good tutorials out there in internet land that people rave about. So if you are wanting more information just google, 'making your own embroidered labels'.