I'm not sure how many of you are aware of this, but most items in my Etsy shop ship for only $1.50. I hate having to pay for shipping when I order things online, so I try to keep my prices low. Out of the $1.50 shipping cost, about $1.20 goes to actual shipping, the leftover $0.30 is what I charge for me to lovingly wrap each item (the picture above is the wrapping for a pair of my grey matryoshka earrings that I am shipping out today) and walk a mile to the post office to mail it out. Sure, I don't have to wrap the items up like this, and sure, I could charge more for shipping, but this is what I love to do. My Etsy shop is truly a labor of love. It makes me happy thinking about someone opening up their package and finding something like this waiting for them, to show them how much I care and appreciate their business.
In addition to wrapping, I also create my own packaging, for no extra cost to the buyer. I cut each piece myself out of card stock and assemble them by hand. It's additional work for me, but it creates a great looking result, and I think the extra step really shows how much I care, and that's what I want. I want someone to get their package and be able to see and feel all of the love that went into it, and I want it to make them happy. That makes everything worth it for me.