Ok here is the deal-
I just went and tried this 3 times, to make sure that their is a problem.
1. When I favorite an item off of my feed- It will save in my Favorites and I can see it.
2. When I search for instance Candy and save from Search ( Handmade, Vintage and so forth) and click on the little red heart to save to my favorites- It is NOT saving or showing in my Favorite Items.
Something is wrong with Etsy.
Do you understand what I am saying?
Why don't you try it and see if it works for you.
I know what I am doing on a computer, so it is not something on my end.