Hi Mary! I see you are doing quite well, although sales do seem to be sporadic, which I'm sure is frustrating. Overall I think you're doing a lot of things right, but let's see if I can analyze your shop to make it a little better.
You mention that you aren't sure which category to put your items in. Have you taken a look at your Shop Stats to see which tags or categories get viewed most? You also should make sure to hook your shop into Google Analytics to get even more stats. Take a look at that every time you tweak something to get a feel for what's working and what isn't.
2 tips I have for you to make a better first impression:
1 --> Get a banner!! And I don't say this just because I sell them. Lol. Seriously though, if you saw a new store in your town that was in a nondescript, nameless building, would you go in?
2 --> Your photography is decent and has all the right angles, but the coloring is a bit dark and yellowish. I think this probably is due to taking your photos indoors. Try taking them outdoors in indirect lighting (not in the shade, but not in glaring sunlight either) at around 3 or 4 in the afternoon. The light is more even then so you should get good color and you'll get much better exposure than you could indoors.