The Iron -On paper is good but, the fabric you can print in the computer is easier. After printing I just cut and then to avoid any possible fraying, I use any water base sealer, watered down, in the entire back of the labels and ..done!
Hope it helps.
Bear hugs and Golly smiles .
You could try:
Just tile your design on the computer, then print a sheet and cut out.
They do washable and non-washable fabrics to print on.