I think one of the best parts of shopping on Etsy is the adorable packaging your item usually arrives in. Here's how I packaged my first Etsy sale (so exciting!). I wanted something that had my shop info that also kept everything together in the padded mailer. The ribbon is taped together in the back so there's no bow to add bulk.
And I designed some mailing labels for the outside.
I know PayPal will print a shipping label for you, but it's not nearly as cute.