Very briefly: For SEO the main things you need to worry about are:
For each page:
Write a page title for each product (upto 70 characters), make each title unique and descriptive. Include a relevant keyword if possible, but write the title mainly for the user.
Write a meta_description for each product (upto 155 characters), same again, unique, write for the user etc...
Write a unique description for each of your products, no generic product descriptions.
The most beneficial things you can do SEO wise for an ecommerce shop are things like making your site usable, think carefully about navigation and try to make every product easy to find.
Also consider experimenting with different layouts for your products, optimize for conversions. This will make your more sales, but additionally, having a better site will keep your users happy and indirectly help with SEO.
Oh, and start a blog, make it interesting and worthwhile. It's a good way to attract some links and give your readers something other than product descriptions to read.
Source: http://www.ukbusinessforums.co.uk/forums/showthread.php?t=289592
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