I know this is an old thread but here goes

IMO Etsy is a bit like eBid, it tends to be a closed market, sellers buying from other sellers. It's quite a difficult one from the UK perspective as it's still vastly populated by USA members where crafting is more lucrative as a business, I don't see it expanding over this way the way things stand. It's good as a showcase and you do get some sales from it but the insurances to sell to the USA and Canada is just ridiculous and takes a lot of profit out of the goods you do sell.
I haven't used it for ages mind so I'd be interested to hear if things have got better.
There are other places like this but from what I can see they suffer from the same problems. There's just not enough buyer interest build by the company, after all that's their job, to really grab peoples imaginations. Let's face it people flock to some of the bigger craft fairs so the interest is there, these sites just don't capture the imagination of the people who seriously would buy.