You have the option to filter by item type. When listing a product on Etsy, you have the option to choose your product characteristics like when it's made, category, if it's personalized, and more. The item type filter enables you to further narrow your search based on this.
Handmade item: Filter by handmade items. If you choose "handmade", only handmade products will be included in your search result.
Vintage item: Filter by products that are vintage. Etsy enables you to select vintage items under the "About this listing" field.
Craft supply item: Filter by craft supply items. Craft supplies are tools, ingredients, or materials whose primary purpose is for the creation of an item or special occasion
Digital item: Filter by digital items. When you select "type" you have the option to choose physical or digital items. If you select "digital items" your search will include only digital items and exclude all physical items.
Customizable item: This refers to the personalization option on Etsy. If you select this option, only items that are customizable will be included in your search results.