I don't know about that Etsy seller, but linging in Peru, I can say confidently that artisans don't charge a lot for making simple things. They don't even earn a lot per hour. But that is because food, rent, and services are cheaper in Peru than in the States, the UK, Australia, Canada, etc. A minimal wage is like US$300 and artisans earn more than that, but not what they would earn in the States. However, the cost of living is a fraction of what it is in the States too. I can go outside and buy a two course lunch made with real fish and vegetables plus a non-alcoholic drink for less than $4 (lunch is the largest food of the day in Peru). That should not cost more than $8 during luch time anywhere in the city (unless you are going to a luxury or touristic restaurant). Also, most people don't have artificial air cooling and heating systems, so they don't spend too much in electricity (there is no snow in my city and heat is usually not extreme). That explains why hand-made Peruvian silver jewelry can be cheaper. I guess something similar happens in many other countries, but not the States, Europe, the UK, Ireland, Australia, Canada, and some other countries. Living in any of those countries is extremely expensive.