My daughter made quite a lot of money on Etsy, enough to buy a top of the line Mac book Pro with part of the money. She does report it to the IRS and had to pay taxes and social security on it, so make sure you deduct all reasonable expenses allowed,
You can make a lot of money and its really cheap to list something, like three cents an item per month.
Great site, test the waters and if it does not work out, close your store.