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It may not work for you but I have a flat $5 shipping on all orders. The small ones that go in a $2 envelope subsidise the ones that go out in a parcel, and it also covers the occasional lost envelope.
It also encourages people to buy more – not many customers will buy a single packet of my vegetable seeds with a $5 shipping cost so they will buy 5 packets instead which still fit in a $2 envelope.