etsy can be fabulous. Or bomb out. For knit and crocheted items, there is a ton of competition. But if you can find your niche, it can be a lot of fun! It helps if you can come up with something unique. (If you do come up with something unique that catches on, be prepared for imitators!) There are a lot of pros and cons. You really don't need a lot of technical know-how to make a professional looking store. I don't have much and mine looks fine. The skill that will serve you the best is photography! Read lots of tips. Take advantage of the nice weather and take pictures of your items in an outdoor setting. The ability to take a great photo will make you stand out of the crowd.
I lucked out and started my little shop right before the holiday shopping season and it was the year the toy recalls were huge, so home-made and natural really got a boost. I also found a niche that wasn't really being filled. As a result, I sold out! It was great! I didn't get to try it out again this year because I was moving and getting divorced and I really didn't have the energy to put into the store on top of everything else. But I left my items listed and I still get sales now and then even though my listings are waaaaaay at the bottom of the results.
Blogging can help too. If you've got a blog, don't make it about your store...you want people to be interested and browse around, but slip in mentions of your store with a link, or photos of in-progress and completed items. If you add tutorials to your blog once in a while--even one really great tutorial, suddenly you'll have regular traffic from all over the place.
Anyway, I really enjoy etsy and would encourage you to try it out. You can hit the ground running if you read up on all of the tips and tricks before you activate your store. Return policies, profile, etc are good to have. If you don't have a feedback rating, one of the easiest way to build up a positive rating is to shop at other stores. Not go crazy on purchases you'd never make anyway, but just spend what you might on gifts and things on etsy and you'll quickly build up a positive feedback.
There's tons of great advice out there. These days, unless you're extraordinarily lucky, you'll never make tons of money. The market is over-saturated, and the economy still sucks. But you might find a nice little side income to help with some of the little extras. And it really is fun when someone wants to buy something you've made. Plus, I absolutely adore working directly with the individuals behind the stores. Not one bad experience as a buyer or seller!