How to save money when mailing gifts out of town

I've been mailing holiday gifts to my neices and nephews who live hundreds of miles away for several years now. I've decided the cheapest route is the simplest:

1) Buy small, lightweight gifts: clothing, books, art supplies, CDs, DVDs, box of candy.

2) Pack them yourself: reuse boxes you have around the house, if possible. Use crumpled up plastic grocery bags you have on hand as a lightweight packing material.

3) Take them to the Post Office and splurge on a couple dollars of insurance. If you do that, the Post Office is obligated to keep better track of the gifts. (The post office once filed a package sent to me under the name of the sender rather than under my name. Since the package was insured, the entire staff spent a day trying to find the thing for me.)

I really believe this option saves a lot of money. I've done the online thing and found I ended up paying a lot extra in shipping and wrapping fees. Another time, the recipient never got what I sent and I ended up in the awkward position of needing their help to try to track down what happened.

If you have any tips that have worked for you, please share them in the comments below!