As shop owners it's our job to bring people outside of Etsy to our items with tags, titles and promoting.
Here's an awesome thread of places to promote your items/shop for free:
http://www.etsy.com/teams/7722/business-topics/discuss/9040387/page/189#A lot of people will favorite things they like. For me, maybe one out of 20 who favorites an item will buy it...So no, don't expect favorites to turn into sales most of the time.
Hope this helps :)
