I had used etsy in the past, but fees are too high for a casual side business / hobby shop, especially given that listings expire and you need to pay again to relist even if you don't get sales.
For selling crafts online, I had much better experience with ko-fi. It was originally for digital goods, and that's still the majority of what you'll find there, but it's set up to work well for crafts as well. I sold candles, scarves and hats, and stuffed animals on ko-fi, and did pretty well with that. It's a very user-friendly site, and you only pay a 5% commission on what you actually sell.
Since it's more known for the digital stuff, you won't get as many people specifically going to ko-fi to search for crafts and craft supplies, so don't expect a lot of new customers to discover you that way, but if you have a blog with a decent number of visitors, you can add a link to your ko-fi, and that's a great way to start selling online. Would work well for things like hand-dyed yarn for sure, assuming you had something like a blog to make people aware of your shop.