Have an avatar. It can be your product, something pretty, words, something silly, what ever you feel expresses your shop.
Having an avatar does 2 things:
1. It gives users a way to identify your shop
2. It presents you as someone who is part of the Etsy community, that little picture makes you trustworthy.
Don't make your avatar photo so incredibly beautiful that it outshines your work. Something simple that doesn't change is a good way for people to know who you are :O)