Because many of my items are handmade crochet, I feel how they are presented adds to the entire feel of the item, so I wrap mine in a beautiful damask tissue paper tied with red organza ribbon, and include a business card and handwritten note with each one. So essentially they come ready to give as a gift if the customer wishes.
From the feedback I get, it is definitely noted and appreciated, and the tissue paper acts as padding for shipping.
I buy my packaging in bulk online, and haven't found it costs any more than investing in bubble wrap or things of that nature.
I think you just have to consider your customer base and what appeals to them as well as what brand you want to give your shop, and then couple that with what you can reasonably afford...
I am approaching 300 sales after being in business less than a year, and have only had positive feedback on my packaging...which is terrific!