SEO is something people are always confused about on the Etsy forums and elsewhere that handmade business people hang out. I'll be honest, even to a total web geek like me it can be confusing. SEOMoz which is a great SEO consulting company has a Free Beginners Guide to SEO on their website and it's really free, you don't even have to sign up for anything to get it.

I also highly recommend subscribing to their blog as well it's always full of interesting tips and insights into what's up and coming on the web.