Create the first label. Format the text as you require, add graphics, whatever. Or, you can hand-select the contents, but make sure you get that hard page break in the selection. Position your insertion point at the top of the second label. All of your labels should be properly positioned on the form now.
Next Action takes a simple command like paste and shaves time off a boring project.
This technique will work best with simple, text-only labels, such as return addresses. Inserting a graphic into a watermark gives a different result from what you'd expect. If you're going to use graphics on your labels, try one of the other methods for duplicating labels. The first label of your form appears enlarged in your window. Type the text for your label, applying any formatting you require as you go along.