She wraps it and puts the ribbon on and then sticks it in her mailer or box. The shipping label goes on that.
You're in Canada, so you can't ship through Etsy yet, although I think I saw they're working on that. You can print the postage out through PayPal, too, I think. Just go log in to PayPal, and the where the transaction is, there should be a link that says Print Postage. It'll take you from there!