A brand is an expectation, a perception, and branding is about crafting and communicating that perception. The trappings that help shape a brand's image - jingles, mascots, vaguely homoerotic spokesmen - exist as a shorthand to bring that perception to mind.
It's tempting to just focus on choosing a name for your shop, picking colors and fonts, and stressing over your avatar and photos on your About page. But these things should be outgrowths of the essence of your brand. Just what is your brand's essence, you ask? First, answer these four questions:
1. WHY do you make (or sell) your items?
Think about how your story fits into your brand. In an environment like Etsy, a big part of the appeal is the authenticity and personal aspect of what you do. The story behind your products can attract customers because it makes what they're buying special - and by extension, it makes them feel special. Read tips for telling your story in How to Make Your Items Gift-Worthy.
2. WHAT is important and consistent about your product? HOW is your product different?
What is your Unique Selling Proposition? What does your product reliably and uniquely bring to the table? Your "USP" is a way of expressing what you offer, what you value, and what people can expect. Think about what you sell: What makes your dog sweaters different from other dog sweaters; why is your hand-dyed yarn special; how do the vintage aprons you sell kick others' vintage aprons' asses? Think about what you offer from your customers' perspective: What is unique about you that can serve their needs?
3. WHICH words would you use (and want other people to use) to describe your items?
Say you're a dog photographer. You take pictures of pet owners' dogs - and so do lots of other people. What adjectives can you use to differentiate and position yourself from your competition? Try the 20/10/4 exercise: Choose 20 words to describe your brand, then whittle them down to 10, then 4. The pet portraitist whose four words are "soulful, spiritual, accessible, and playful" appeals in a different way than one whose are "sophisticated, experienced, elegant, and chic."
4. WHO are your customers? (And, no, "everybody" is not an acceptable answer.)
Don't fall into the trap of trying to be everything to everybody. Think about who your likely customers might be and build a brand to appeal to them. How old are they, what kinds of TV shows do they like, how much money do they make, where do they live - anything that might help you zero in on prospective buyers' mindsets. Do you make jewelry with skull and vampire motifs? Maybe preppy colors and peppy taglines aren't the way to go.