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To create a mail merge with sequential numbers, start by typing "label" in cell A1. If you want to include letters with your numbers (e.g., "ch346"), you can enter these and then pull down to auto-generate a sequence. Alternatively, for numbers only, enter "1" in one cell and "2" in the next, highlight both, and drag down to create a sequence. Another method involves using a formula: input your starting number (e.g., 145) and set up the formula as "=[starting number]+1". After pressing enter, drag this down to generate the sequential numbers. Once you've chosen your preferred method for numbering, you can proceed with the mail merge.