I know a large number of people who sells goods on Etsy. I myself love Etsy and there are some amazing finds on there. For the casual hobbyist, Etsy is a great outlet to get your products out into the world quickly and cheaply. However, if one really wants to grow a product based business, just having an Etsy site is not enough.
1) buy your own domain name. Even if you put up a basic website directing others to buy at your Etsy site, this ensures you are in control of your brand name and presence on the web and have a back up website if Etsy were to ever take your page down;
2) back up all of your product photos and copy offline;
3) keep records of your sales offline and ask your customers to join your email lists so that you retain your customer lists.
Etsy is a fabulous site with lots of good products, but it’s just one tool for a small product manufacturer or seller. Make sure you always own the rights to your own business aspects, from a domain name to your customer lists.