I think the best marketing is to offer excellent customer service, a happy customer & word of mouth mean the most to me. Make a product you are proud of, answer convos asap, write thank you emails & hand-write a thank you with their name on their invoice in the package. Make it personal, I think that is what people shop on Etsy for.
Brand yourself, for example, my biz card & banner have pink & brown polka dots, I keep that look going when I wrap my customer's purchases in matching pretty tissue paper & ribbons. I usually tuck in a little extra something or offer them a discount, etc. on their next order. I pack everything carefully in boxes & ship that day. I also keep my eye on the tracking #s for the packages, so if the postal service misplaces a package for a day or two (it's happened:() I can give my customer a heads up & let them know I called about it & it's now back on track. When I'm in craft shows, my table covers, signs, etc. all match.
I think that if someone is happy with their purchase they will sing your praises, I know I do when I buy something! I think the biggest challenge is marketing to get people outside of Etsy to come to our shops. I make things for babies & little girls, so I've gone to a few dance schools, nursery schools, etc. & some have let me set up a table & sell there. I donate 10% of what I sell back to the school, so it is a fundraiser for them. Try to get in front of your audience. Maybe you make things for pets? Try this approach at the local ASPA. I've also given products to friends to give as gifts.
I am still trying to find the best way to get the word out organically as well as thru the computer. Not sure if I should do mailings, etc. I'm learning as I go, but I really believe going the extra mile for a customer really impresses them.
