Follow the tutorial below to learn how to setup Google Analytics on Etsy also referred to as 'Etsy Web Analytics'.

How To Setup Google Analytics On Etsy

1. First you need to create a Google Analytics account at htt://Google.com/analytics.
   - When asked for your Website's URL enter Etsy's URL (www.etsy.com)
   -  When asked for your 'Account Name' enter your Etsy shop website address (shopname.etsy.com)
   - Hit 'Continue' when you arrive at the page titled 'Analytics: Tracking Instructions'
2. Once you arrive on your account overview page, locate the tracking code which appears to the right of your shop website address. It will appear in this format: UA-XXXXXXX-X.

How to install the Google Analytics tracking code on your Etsy shop

1. Log into your Etsy account and click on 'Your Shop:...'.
   
2. Click on 'Options' located under the 'Shop Settings' section.
   
3. Click on the 'Web Analytics' tab.
   
4. Enter your Google Analytics Web Property ID in this format: UA-XXXXXXX-X.
   
5. Click the 'Save' button.

Wait a day, then check if your Google Analytics is installed properly.

Here is a video on how to setup Google Analytics with your Etsy Shop.

Here is a video on the basics of using Google Analytics.

Here are the Etsy instructions below. You can read them if you want, but they're not as precise as my tutorial.

Sources: http://www.etsy.com/help/article/230