have been paid with Etsy's shop payment not Paypal. I know several people have been reluctant to use this feature but I believe it is helping my sales. Yes, it is inconvienent not to have the money to pay for postage through paypal but I've just left the money in there from those that have paid via paypal and that has covered the shipping on the other orders. Yes, I have to fill out the shipping label manually on paypal but that isnt really that big of deal either.
Just wanted to share my experience and see what others are thinking of it now.