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Yes, the internal memory can be upgraded. No, you do not need an external cooling pad. This should be able to keep up with your Etsy store. I have a similar model with the Celeron, 4GB, and 64GB SDD that I use for music recording. If you don't have very large programs, you'll probably not need an external drive. If you do, you can use a USB flash drive for external storage. Here is an example of one: https://www.bestbuy.com/site/sandisk-ultra-32gb-usb-3-0-micro-usb-flash-drive-gray-transparent/6291744.p?skuId=6291744
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