One thing I noticed about your tags is a LOT of them are one word tags. I've heard one word tags are less effective, because most of the time people don't type into a search bar "catnip," unless they're looking specifically for catnip, and they dont type in just "plush" if they're looking for a cat toy. "Plush cat toy," "plush catnip toy," etc are generally more effective.
This listing, for example:
http://www.etsy.com/listing/98482984/squeaker-dog-toy-owl-brown-body-greenTags like "colorful," "stripe," and "print" aren't relevant, IMHO.
Keep an eye on what search terms have brought people to your shop's items in the past and rework your tags around those.