I don't sell on Etsy, but I plan on trying it this year. Here's a few things I've picked up along the way while reading about it.
You have to list items often. If you have a bunch of stuff to list, do it over a week or so. The way their search engines work is they look for the most recent listing. So if you list consistently, you'll get better results.
Etsy is HUGE, so you really have to network. Joining Etsy teams, participating in the forums, adding artists to your circles and doing treasuries will get you exposure. It's almost better to think of Etsy as a social network. If you don't participate, you'll be lost in the cracks.
You'll have to do a lot of your own promotion too. Create a Facebook page, create a blog, do videos. Pretty much anything to get you exposure outside of Etsy. That will drive more traffic to your store. Link where you can (without spamming) to your etsy store. On SSV, you're allowed to add a link to your website/etsy store in your signature.
Do some research as to what sells. Just browse other people who do similar work. On the side of their storefront, you'll see how many sales they've had. Click on that link to see what they sold. Don't copy them, but it should give you an idea of what Etsy buyers like (Etsy buyers have their own aesthetic, and often follow trends).
Also, read their Blog. Etsy wants you to succeed. The more money you make, the more money they make. Their blog has a lot of great articles, inspiration, and business advice. You should also check out their Seller's Handbook.
Check out this blog on the business side of crafting: Designing An MBA. Lots of great business advice. Also check out other blogs and websites for advice. There are also a number of books on Amazon that cover selling crafts online.
I hope this gets you on your way. Perhaps some Etsy sellers here can add their experiences.