It could face higher advertising costs in the future as Google ( GOOG) discontinued its free product listing service effective in the fall of 2012, replacing it with a new fee-based listing service.

FORBES: Francis Chou Makes Largest Overstock.com Paring Yet

Etsy makes money by charging a listing fee of 20 cents for each item and getting 3.5% of every sale.

FORBES: Top 10 Tech Companies Of 2012

Etsy makes money by charging sellers a listing fee of 20 cents for each item and receiving a 3.5% commission on the price of each sale.

CNN: Hot with the crafty set: Conan, Smurfs, Etsy.com