Is anyone making any real money on Etsy besides Etsy?

There are over 363,500 listings for bracelets on Etsy with 5600 listings for polymer clay bracelets alone. Oversaturated to say the least. $0.20 is not a lot to ask for a listing.  In order to make a sale on Etsy however I've found your prices need to equal that - 20 cents. And then there are the fees if you actually make a sale. And don't forget - customers don't want to pay shipping and handling costs.  There are plenty of us on Etsy that are actually trying to build a business. Our prices reflect the costs to produce our beautifully handcrafted pieces which includes the time, materials and overhead. There are a lot of items sold by enthusiastic hobbyists. I look at the prices they are charging and wonder how they could possibly be making a profit. I'm also learning that once you send a potential customer to Etsy to inspect your wares  - they are veered off track and spend truckloads of time looking at all the other great stuff ... like groovy crocheted potholders and macrame flip flops. 


I think I need to investigate some other ways to sell one of a kind items online. Any thoughts?