If you're going to use packing material to protect them, then you could make the small pillow boxes and stuff them inside, or use the kraft jewelry boxes... I buy mine from nilecorp.com and even with shipping charges, they're the cheapest I've found for a case of 100.
I also buy the poly mailers, rather than the kraft mailers, because they weigh almost nothing to add to the shipping costs, and they're puncture and water proof too. I get the 4x8" size which are perfect for the small jewelry or pillow boxes, and a case of 300 is 37.99 (free shipping), but you can buy lesser quantities at PackitRight.com
If you're not using PayPal shipping, you should consider it, because your items won't weigh much, and a 1-3 oz pkg is only 1.64, including free delivery confirmation, whereas the PO charges 1.95 + .85 for delivery confirmation.