hi Laura,
I don't remember 8.5 that well but if it has the multi-column feature then here's what you can do using a regular report (not a label report)...
1) go to the Section Expert for the Details section and click on the Format With Multiple Columns button
2) go to the Layout tab and check Format Groups With Multiple Columns
3) change the Printing Direction to Across then Down
4) set the Width of the column to be the desired 'label' width and exit this expert
6) Insert a Group on the sopnumber field
7) Insert a Cross-tab and place it on the sopnumber group header
8) in the cross-tab expert put the trackingnumber field in as a row...leave the rest of the cross-tab blank
9) stretch the height of the Group Header to the desired 'label' height and then suppress the Details section & Group Footer section
if you don't have the multi-column feature in 8.5 I don't know if this is actually possible. it is definitely possible in later versions such as 2008, 2013...
-jamie