How to ship cheapest!?

Hi! I'm shipping items using Amazon. I'm selling a product for $5 with free shipping. I can get the product for under $1, but the shipping is killing me which costs about $2.50 (I always ship with tracking, so I know it got to its location and when).

Here's my cost breakdown:
item: $0.95
shipping envelope: $0.30
shipping cost: $2.50

In the end, I make about $1.25 in profit. Any suggestions on how to get my prices down, especially the shipping? Is there anyway?

Thank you in advance, I will reward points!

Soccerboy4962015-02-20T11:48:33Z

Oh, and I'm shipping an 8 inch long cable, which can easily fit into the smallest package. Thank you!

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