Mitzi from Mitzy's Miscellany asked me to join up with her and couple of other Etsy sellers to write a post called "Three Tips for Etsy Sellers".
I was flattered to be asked, but when I started thinking about it, I can't think of just three tips for success because there are as many paths to success on Etsy as there are things to sell.
So I just thought I'd throw out some random thoughts about my experiences on Etsy.

I opened my first Etsy shop, SugarPinkMoon in Feb 2007. My plan was to sell things I had made, vintage items and supplies- all in a cottagey, romantic style- lots of roses, pastel colors etc.
I opened a second shop, Gathering Dust in Dec 2009. My idea was that I'd use that shop to sell items that didn't fit the soft romantic look of SugarpinkMoon- things like rusty keys, watch gears, mantiques, etc.
Both shops have worked well for me, I don't know if it really made any difference to have two shops, or if my sales would have been the same if I'd had everything in one store. Maybe it just made it easier for me to keep track of it.
One thing I know for sure is that if I treat my Etsy store well, it treats me well. The same is true for my booth at the antique mall. When I keep the stock rotating, and keep adding new things, I sell.

When I add 8-10 items to my Etsy stores, I will have 2-3 sales in the next day. If I blog about it, I usually have more sales. I don't have any scientific evidence, but I'd guess about half my customers are blog readers, another 40% or so are repeat customers and the remaining 10% just happen to do a search and find my shop.
Repeat customers are great. I love you guys. It's still a thrill to get an email that says I've made an Etsy sale, but it really makes me happy when I'm selling to someone who's bought from me before.
As far as the actual mechanics of running a store, I've worked it out to be pretty simple. For the most part, I only sell items that weigh less than 12 ounces and will fit in a bubble envelope. I order my bubble envelopes and bubble wrap in bulk via Ebay- and I know my cost per envelope and per foot of bubble wrap and I figure that into my shipping costs. My packing tape comes from Costco- they have it on sale about once a year and I stock up.
I print my shipping labels via Paypal, tape them to my envelopes and drop off my packages at a drive up post office box on my way to work. I don't even have to get out of the car!
As far as taking pictures, I have a portable fold up studio that I used a lot when I sold on ebay and sold larger items. I bought it online for about $70 and it was a good investment.
Since I've switched to smaller items, I usually just take my pictures close to a south window on a sunny day.

The Etsy website has an almost overwhelming amount of help boards and selling teams. I really haven't looked into it, but I'm sure there's a lot of good information there if you have the time to look for it.
Another place to get behind the scenes Etsy information is Craftcount.com. They have lists of top sellers in all categories. One of my theories on finding success in anything is to look at someone who's already there and look at what they're selling and how they do it.
Cr8tivity.com also has selling information and widgets like the ones I have in my sidebar.
If you're just looking for some laughs, check out Regretsy.

If you have any questions, please feel free to leave a comment or email me using the link under the "About" in the right column.
For other current posts on Etsy, check out these blogs:
Laurie from Indulge Your Shelf
Laurie from Magpie Ethel
Mitzi from Mitzy's Miscellany
The pictures in this post are from current listings in my shops.