http://www.etsy.com/help/article/230Here is the Etsy help article (important parts copied below), I just set mine up three days ago and it is working.
Key points, 1. use the exact URLs as they are written below, just copy and pasting the URL from your site won't work. 2. Important to finish step 2, or no data will be gathered. 3. write down the ID number UA-XXXXXXX-X as soon as you see it - I thought it was hard to find later (once I went past the webpage with the ID).
Step 1: Getting Set Up
To create a new Google Analytics account, visit
http://www.google.com/analytics/Here are some helpful hints during signup:
When asked for your Website's URL enter Etsy's URL (www.etsy.com)
When asked for your Account Name enter your Etsy shop website address (shopname.etsy.com)
Hit Continue when you arrive at the page titled Analytics: Tracking Instructions
Once you arrive on your account overview page, locate the tracking code which appears to the right of your shop website address. It will appear in this format: UA-XXXXXXX-X.
If you already have a Google Analytics account you can instead login, click on Analytics Settings, and then choose Enter New Profile.
Step 2: Enter Web Property ID
Then you can enable this feature by going to Your Account > Options > Web Analytics. Enter your Google Analytics Web Property ID in this format: UA-XXXXXXX-X. Click Save.
You should be all set. To view your Analytics, you must sign in to your Google Analytics account. Since Google Analytics works on a delay, you may not see data in your reports for up to 24 hours.
Good Luck!
Becky