Hi there, well done for getting started with your shop.
I think your prices are totally fine, you cannot compete with hobbycraft where everything is made in china, people who buy this sort of thing are not looking for bargain basement but rather style and quality.
Are you using all 14 of you tags? Are you using Etys SearchAds? Are you optimizing your listings for SEO both title and the beginning of the product description?
I agree with above posters totally, you need to photograph the product on a white background. There's been a ton of research done on this, go on any major site and (john lewis/ NOTHS / etc.) you'll see everything on a white background, there's a reason.
Also, agree with whoever said use natural light, don't use the flash, go outside on a grey day so light is diffused (god knows we have enough grey days in this country)
I've had an Etsy shop for about 3 years, plus own website etc. i'm not an expert but do make a living.
best wishes, stay positive, it's all a learning curve.