I once worked (briefly) for a jewelry wholesaler who sent out 10-20 orders a day and I was appalled by the lack of care that went into packing those orders for shipment. Jewelry that had sat for a while in a bin was left in dusty plastic bags, crammed into boxes sealed up with wrinkled tape and smudged mailing labels.
Everything about the condition of her packaging said "I don't value my product and I don't value you."
On days when I was scheduled to do the shipping, I was criticized for taking an extra minute to put the jewelry in a fresh bag or smooth the tape on the packing box. (Like I said, I only worked there briefly).
The condition of your packaging can say even more about you than the product you are shipping. I'm sure most Etsy sellers know this so perhaps I'm preaching to the choir, but I recently received an order that might have been sent by my former employer.
It just takes one time of being on the receiving end of sloppy packaging to realize how much of a negative and lasting impression it can make.
Your packaging doesn't need to be fancy or creative, but it should be neat and presentable. Even if your product cost only a few dollars, your customer should feel appreciated and delighted by your efforts.