@StripyBathTowel had a great idea
but dont just delete a re add your existing product. I dont know what you sell but genuinely come up with a new collection, could just be 2 or 3 items in a new colour/ theme etc and market it as a launch
Beyond this you need your own website. From what you have said you cant compete with the price and the imflux of drop ship product, so you will need your own website to really now adapt this business to work.
Shopify will be a good fit for you and is really simple to use these days. Have a play around with it.
Then use this to tell the story of you, your brand and your product. Where its made, what makes it special, about you, why you make it. Show people the process of making it and the story behind it.
This is where you can compete with the likes of Temu because there is absolutely a market for people that want to buy product that is hand made with a story behind it and understand there is a premium price for this. But you need to be effective in telling that story.
Use your instagram channel to tell that story and leverage the audience you have on there. Use video and show them the product and process.
as @StripyBathTowel suggested plan a launch in the next few weeks. Something new that your customers will be interested in. Start talking about it, show the process, get them excited. Say its limited addition, exclusive batch etc
Get them to sign up to an email to be notified when the new collection launches so they dont miss out. That way you have a ready made list of people that you can email when it launches.
but this should be done on all your own channels your instagram, your own website, your own email list.
you can then run your own ads on instagram to get people to your website to support all this too.
it’s a big change but you’re seeing that etsy isnt working, so a change to make things work is needed. If you love the product and think there is still interest in it, you can make it work