Yes, all of the "storefronts" on Etsy are run by small businesses. Etsy provides a platform for small creators to sell their products on a larger scale. While Etsy benefits from every sale, so does the artisan making the products you order. The average Etsy listing has a profit margin of around 40 percent, but this can go up over time as the seller expands their shop. So, the more you support a shop, the more they can grow their business and make over time.