Good Luck :) it's a cold hard work out there lol! I sell on etsy but it took me about 9 months to really start selling. I was selling one item a month and this month about 15. It takes a bit to build up good feedback. With etsy you have to have great pictures and unique items. Something so you stand out from everyone else. Make sure you use all 13 tags. I too checked out similar items prices. And I chose to go a bit lower. I make a bit less money but things are moving. You can always raise the prices after you build up your reputation.
I have heard lots of people have success with Facebook. But then you have to really get your page out there. I started one this weekend.
I have never done a craft show. I am worried about making up so many items and then have the risk that they won't sell. I am a stay at home mom too and it is hard to spend money On something that may not being a profit back.
I have also had some luck on craigslist. But I also live in a very populated area. So the ads do get burried quickly but there is the chance that more people will see them.