Big picture:
You have a decent amount of items in your shop, everything from bookmarks to baskets, to dish towels to pillow cases. That kind of makes it hard to review because of a broad product line. That also makes it harder for you to market, produce, and innovate, you spread yourself kind of thin.
Your photo’s seem decent and bright, some are cropped small. When I’m looking at them it seems like there is something missing, don’t know what it is. They aren’t “popping”.
For etsy SEO:
http://www.etsy.com/listing/105400470/pillowcase-handmade-cotton-pink-limeI think the title on this item is okay. You aren’t gaining any seo points with the punctuation nor are you loosing any. It actually caught my attention so I say for that reason along it’s good to leave those periods in there.
On this item only 3 of the tags are found in the title, the closer they match, the better for etsy search.
As for the actual words in both the titles and tags, you need to make sure these terms are what people are searching for. I’m not clued in to this market but something tells me these are not the best terms.
For goggle search, your section names are not pulling their weight. Loose the punctuation, the slash, make sure they are high value search terms, eg: I doubt anybody is searching for “and sew on”.
Your description for the above isn’t helping you on google either. You need those keywords in the first couple sentences. For some reason your backlink is not live on my browser.
I recommend you find that etsy guide people refer to all the time and diligently apply it. That will help your seo issues. There is the big picture issue though and I think you need to give some serious thought to. Unless you are selling a “décor”, I think you are trying to cover too many bases at once.