I have over a 1000 sells there, also make handmade jewelry. I have 2 shops, the other shop has about 150 sales. As an ebay seller, I have a few hundred sales.
http://www.jeweledambrosia.etsy.com
I'm a seller mentor, and help people get their shops started all the time. However, I haven't been keeping up with my shop or the site wide changes these past several months (like the whole forums got a weird redo), but many of them are for the better.
I haven't updated my shop in a long time, and I know in the next month or two, I plan on doing a complete shop makeover, including new product lines, photography styling, graphics... everything. Shop updating is crucial. At times I list and really plug away at my shop, I would make a few sales a day. Now, I'm lucky if I make one a week.
I will say, competition is absolutely brutal. You certainly need another social media outlet to connect to buyers, such as a blog, facebook page or a twitter.
Quality descriptions, tags, photography and products are paramount. Fortunately, etsy has many helpful storque articles on all of these things and a wonderful sellers guide.