I re-use paper grocery bags by folding them and using mailing/packing tape to make free mailing bags. Just cut off the bottom, or "flat" part. Wrap the item as you would a gift, using staples or tape to fasten the sides. Make sure to put tape over the sharp part of the staples. You can actually save money on postage by using this method instead of a box, which adds weight. I have also re-used USPS Priority Mail bags and boxes by turning them inside-out. I figured they would just be thrown away, so why not? Happy mailing!
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Actually, reusing priority mail boxes turned inside out is illegal and can get you into a great deal of trouble with the post office, a branch of the federal government. The PO reguarly scans and opens packages to check for this very thing. Now you may not get arrested, but you never know with the federal government. This practice also contributes to higher postal rates for all of us. I know it seems innocent but it really isn't.
I reuse paper bags to mail stuff in as well. As far as reusing priority mail boxes, I know that the post office does not like people to do that (and could be illegal as reggierhy said, I honesty don't know). The reason they do not want people to do this is because they have no way of knowing if the packaging is actually being reused or if someone is simply using their packaging for free by turning it inside out.
If you are discovered using "inside out" priority boxes, you will be required to pay Priority Mail rates. Many of the priority boxes are stamped "Priority" all over the inside to prevent using them in this manner.
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