For labels, I too use plain paper so as not to add to my shipping costs. I rub a little, cheap glue stick on the back, then tape it, avoiding the bar code. I was told by the PO not to tape over that. I use the USPS website for shipping and labels.
The post office actually has some free boxes, which are great. I also ordered some small ones from Uline, THEN found out about the free ones. I keep all the packing stuff that comes with things I order, and reuse them... even if it's crumpled newspaper. I'm pretty "cheap" but don't like to add a lot of cost that would have to be passed to the customer.
As for Etsy, I have an account there, but can't get into it!! I also didn't know that they will automatically delete items that have been there for awhile. I'd just rather work my website, which works fine for me. I also have a facebook "group" but don't really know how much that helps. I did get a few sales that were a direct result... but not getting rich off it.
All my shipping charges, including PP, are calculated after they have selected their items. I then either charge their credit card, or send a PP request for money to cover the postage. I tried calculating everything so I could include the shipping and gave up. The shopping cart does charge a fee for that, then there is a CC fee, so this works better for me. No complaints yet.
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Barbara at Oasis Soap Co.
http://www.oasissoap.com