I've been shipping internationally for over 20 years now and nothing much has changed over the years.
When using Etsy labels, the single page label is for USPS 1st class international which covers everything under 4 lbs.
The 4 page label is for Priority International packages and 3 pages go in the plastic USPS envelope and the 4th copy is the sender's (your) copy. If you don't have a USPS plastic envelope handy, a zip lock bag will work in a pinch.
As far as descriptions go I keep it simple. In your example I would simply write 'stuffed toy'. It gives the information needed but not enough information to entice someone along the way to steal the contents.
True 'jewellery' cannot be shipped to Italy (just as clothing, shoes, purses, etc cannot be shipped either) but most of the 'jewellery' on Etsy doesn't fall under the Post Office's definition of Jewellery. You can send 'costume jewellery' to Italy (and many other countries including Canada) without any problem.
See section 134.2 -e
http://pe.usps.com/text/imm/immc1_013.htm