Mail Merge for Dummies: Creating Address Labels in Word 2007 Creating Address Labels in Word 2007 1. Before you start make sure you have your Excel spreadsheet ready. Now open up Microsoft Word 2007 and click on the Merge tab. 2. Next, click on the Start Mail Merge button and select Labels. 3. Now it's time for you to select the Label Vendor. In my case I am going to use Avery US Letter. 4.