Even though the fees from Paypal and Etsy were listed in the wrong category of Schedule C expenses, the bottom line of the Schedule C would remain the same. Just report it in the correct category for 2022 and keep the 2021 records showing that it was on a different line for 2021.
As for inventory, if the inventory and cost of goods sold section of the 2021 Schedule C was filled in, there could have been an ending inventory value to transfer to 2022. However, tracking inventory for a Schedule C business is not necessarily required unless the business income is greater than $26 million on average for the last three years. Instead, the inventory may be expensed when purchased. So, if there is simply a value entered for the cost of goods sold on the 2021 return, everything should be fine.
Take a look at the following TurboTax help article for more information: Do I need to report inventory?
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