My opinions on much of this have changed greatly since my original post. I have been working hard on SEO but it's a bioch to say the least. Pulling traffic from well established businesses is an uphill battle. Your stuff can look great on your site but people like to shop with who they are comfortable with, especially when they are dropping some significant coin.
Etsy... I have all but given up here, but I think that's just for my niche. It can work for you but I think it's product dependent.
Social media is the way to go... Pay to click can get quite expensive but it does work. I have not noticed an increase in SALES from pay to click coming from FB however. What I have noticed in sales increases however ar ethe simple "like" campaigns from FB. More like have brought HUGE increases in site traffic and huge increases in sales for just pennies a day.
If you are not hitting Facebook, Pinterest, Instagram, Google+, and YouTube, you are missing out on some serious exposure for your business and some serious ching in your pocket. Also, there are a ton of free e-books out there on how to use each of these platforms to your liking. If you are not tracking your site-stats, you are also not paying attention to where you need to spend your time, attention, and money directing your mare ting. And believe it or not... time you spend goofing around on Facebook and YouTube is marketing!