Be verrry careful using licensed fabrics like that - some of the copyright holders will make sure your items get taken off Etsy. Disney is especially rough on people about that sort of thing.
You might also use Housewares as your top level category search - Needlecraft isn't a bad place, but if I'm looking for pillowcases, I'm not going to go look in Needlecraft, I'm going to look in Home Decor.
Most importantly, you need more items, and it might not hurt to switch pics on your earliest items to the white background.