I have a shop (http://www.millyandnans.etsy.com) AND shop there. I've purchased a knit bag and knitted jewelry, and I make yarn jewelry and accessories.
I just started earlier this month, and I'll see how it goes eventually. I have big hopes, but I've got to make more items and keep working.
Basically I've learned one cannot be casual about it and be successful. It has to be your dream and you must treat it like a 2nd job. In order to sell a lot, they say to list about 2 items a day. I'm not doing that yet, this past week I haven't been well, then the "heat wave" came, a time I never do anything - ha. Plus the forums on Etsy (you're suggested to use to get the word out - but it hasn't gotten me buyers yet, although I find shops to buy from - sigh) are soooooooo addicting, you end up not working at all.
I am just waiting for the heat to end, and I already have two finished items to photograph, but it's too hot in the light - ha ha.
Good luck - and I hope you enjoy Etsy!