I posted my first two items in my Etsy shop last night and one of them sold before I could even get the other one up! That told me that I'd absolutely priced my item too low. It's okay, though -- it was a good learning experience and now my 'opening night jitters' are behind me. It's odd to be so intimidated by all the great things I see on Etsy, because I've sold so much on Ebay.
I also didn't charge enough for shipping. Rather than allowing the buyer to calculate the exact shipping cost from my location to theirs, Etsy forces the seller to charge a set amount. That can be a real bargain to a buyer in California if I only charge enough to send it Ohio, but if the buyer's in Ohio and I charge enough to send the item to California, that's not fair either! I wish Etsy had a 'calculate shipping' option like Ebay's -- it's SO much better all around!
I worked it out by offering to refund any overage in shipping that comes to more than $1. As a Christian, I can't allow people to pay more than it costs and that system seems fair to me.
I'll keep you all posted on how the sales are going. . .