I don’t think you’re taking into consideration that it’s my time, my work and my materials, dear. Or that I’m paying for half of shipping out of pocket. Or that when you sell something you make, you have to actually make a profit from it. Or that when you host something on Etsy, it costs money.
Handmade products will always cost more because they were created by an individual, not by a mass-producer. I’m not having machines put together my products at a quick rate. I’m taking six hours out of my day to make something.