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Selling it

Display, and the counter unit

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In a category bought on impulse from a counter, the thing that holds the tubes is closer to being the product than the tube is.

The unit is the product

A retailer is not buying 24 lip balms. They are buying a thing that sits by the till, holds itself up, faces the customer and does not need thinking about.

Sell them the second thing and the first is included. Sell them the first and you are asking them to solve a merchandising problem for a product worth a few dollars.

What a good one does

Stands up when full and when nearly empty, which is where most fail.

Presents tubes upright and facing, not lying flat where only the cap shows.

Carries the brand at eye level, above the tubes rather than behind them.

Holds a sensible reorder quantity, so "it's empty" and "order another case" are the same thought.

And is small. Counter space is the scarcest thing in any shop and the commonest reason a display is refused.

Making one

Printed and die-cut card is the standard and the cheapest at quantity, with the same minimum-order problem as labels.

A wooden or acrylic unit reads as more permanent and suits a higher price point, and it is worth considering that a reusable unit plus refill cases is a better proposition for both sides than a disposable one.

Prototype in card by hand before ordering anything. A display that is a centimeter too deep for a counter is a whole order wasted.

What it earns you

Facing and position, which is the whole game at a till. A product in a branded unit keeps its place; loose stock migrates into a basket with everybody else's.

It is also, at a market, the difference between a table that looks like a business and one that looks like a hobby, and that judgment is made before anyone picks anything up.

References

No published source. This page is written from practice rather than from published guidance. No extension service or agency publishes on this question for lip care, so nothing here is cited, and it should be weighed as experience and not as a standard.
Written from the federal regulation and FDA guidance named on each page, not from a laboratory or a legal practice. Whether a particular formula and a particular label make a cosmetic or a drug is a determination about your product, and this is not that determination.