SEO is basically search engine optimization. That is getting as many key words that describe your product in the title as well as in the first couple of lines in your description.
If you haven’t joined and had your shop critiqued by the Sassy Critique Team you should. This is one of the many things they can help out with. Lots of great ideas.
Here is the link:
http://www.etsy.com/teams/7702/sassy-critiquesI did a while back and this is the response that was provided to me in relationship to SEO:
“- the text fits in nicely into the url already but try and avoid words like with as it is unlikely anyone with search using with. You could replace it with bead for example. Urls contain less key words that the title that will come up in Google so you could add in some more relevant words too. As it appears you have, always think in terms of what words you would use to search for this item. Play around with the wording in both url preview and the Google preview in any listing in Edit mode.
Descriptions - key words at the very beginning - again think in terms of what words you would use if you were looking for that item. Include things like what it is, what it is made from, colour, size (inches and mm), how many you get etc. Obviously you have that information in the main body but it is important to get it all in at the beginning of the first paragraph. Summer breeze is nice but not particularly relevant for these purposes. State facts first and then give the descriptives and back story etc in further paragraphs. All the text is searchable on Google of course. Include information on shipping e.g. link to your policies page. If the item is made to order make sure this is very clear in the listing. Link to other items in your shop or shop sections as this is helpful with SEO too.”
Good luck