My wife has a store on etsy selling handbags, and frankly, the traffic has gone done over the past year. She has a great reputation, and she still makes sales, but not because of Etsy. It's simply a store front for her where she can direct people that she finds via other avenues, such as Facebook and referrals. I imagine part of the reason of the decline is the fact that she focuses on higher end handbags, and doesn't try to compete on price. I've told her that she's isn't going to compete with Asia on price, so focus on quality and custom work.

Not to mention the fact that Etsy has done nothing to improve the sellers experience in years. Sure, they put out some new way to design your store front with something more custom, but practically speaking, it lacks critical features. She literally sent a customer to the store to pay for the bag via Etsy, and the customer couldn't find the PayPal button to pay because they didn't offer PayPal through the custom storefront.

It's really bad when your store prevents a legitimate customer from making a purchase, and that's literally what you are selling. Seriously.