You could try some sort of paper product, or re-use some packaging that was sent to you. One of the best things is to select a box that is the size of the item you want to ship and does not require packaging material. But if you are not able to do that, try to select something that will biodegrade. I have heard of people using popcorn (non-buttered) before and then your recipient could then toss the popcorn out to feed birds.
Some companies sell biodegradable packing peanuts made from grain. After you are done with them, you can use them as fertilizer.
Newspaper is a simple and cheap alternative to plastic packing materials and it can even be recycled after.
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