The general consent seems to be that sales have slowed down. I suspect that total revenue is still up, but possibly spread over more shops and some super sellers. You get lost more easily within the stormy sea that is Etsy.
So what to do?
Finding other promotional outlets as well as possible sales venues might be the way to go. Here are the things I would do if I really needed to stimulate sales right now:
Google AdWords
With Google AdWords, you only actually pay if someone clicks on your ad, which is a model I highly prefer to the "just show my ad and hope for the best" approach.
Set yourself a daily budget you can handle. $2 might look like nothing, but it still adds up to $60 a month. Go for low cost per click; I currently have a limit of 5 cents, I think. Means my ad is displayed lower on the page, but I also get more clicks out of my daily budget.
Try and link to your website with integrated Etsy Mini, not your Etsy shop directly. Getting people into Etsy is great, but you also lose them more quickly. I still have to change that, but my website is not up to scratch right now - needs to be redesigned this weekend.
Project Wonderful
When you choose to place ads through Project Wonderful, go for your target market. Analyze your CPC (cost per click), because those can easily end up more expensive than Google Adwords clicks. Find more about my take on PW here.
Local press
Get in touch with the local newspaper, your church newsletter, anything that your town is affiliated with. Make it a home story, a glimpse into your workspace, anything that is of interest to them - and mentions your shop and your great handmade products.
Decorate a shop window
Have an office nearby that doesn't utilize its display windows? A pet barber that could use some plushies? Offer to place your products in a nice display, with a sign directing people to your website - give them merchandise or a cut if things are sold directly from that window.
Social Networking
Are you doing all you can out there? Do you blog, do you link to Etsy on Facebook, do you twitter, do you place your photos on Flicks? There are so many venuews where you can cross-promote your shop.
More tipps and ideas?
You can read back on some previous ideas of mine and the Virtual Labs right here.