I had $7,000 in sales but only had a net profit of $1000 from Etsy sales how do I enter this?

[SamuelJ2]

You should report this income as a self-employed business.

In the left navigation panel go to "Income" > "Self Employeed" > "Business or Proffesional Activities"

In that section you will be able to claim all your expenses you acquired against your income.