well, it MAY or MAY NOT be. the thing with esty is....it's like a mix between an online store and eBay. they are ONLY a third party and charge fees per listing with the buyer/seller handling everything else themselves so in that way it IS like eBay. and it's supposed to be for things the seller personally makes (unlike eBay where you can resell goods) or is vintage. but on the other hand, there are no auctions involved so no shill bidding, etc. UNLIKE eBay.
Ok http://etsy.com is just an online shopfront to sell handmade items. So no designer handbags involved, hence no fakes. I'm assuming the no ebay listings is to prevent fakes? Listing fees are paid to list the item, but it's not an auction. And all items sold have to be handmade unless you put 'commercially produced' in the listing, but that's usually frowned upon.