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No, it is not all about links, but that is a great portion of it. It also depends on the title of the page, keywords, content and even your competition. It is all about 'Relevance'. If the SE considers your page title relevant to its content, and the text in inbound links also relevant to the target page title and content, it gives it a higher rating. That moves your site up higher in the search results. Make sense?
You should choose keywords that are not only relevant to your page content (make each set of keywords unique to each of your pages) but choose keywords that are specific to your subject matter. For example, if your site sells hand bags, don't use the single word 'handbags'. It gets a lot of searches, but you will be lost among a million other sites using it. Try to use keyword / phrases that are specific like: Oversize handbags, children's handbags, embroidered handbags and so on.
Hope that helps a little. It is a complex subject and requires a lot of work to make an impact.
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W F Peyton
Web Site Analytics for Serious e-Commerce Sites from Web Stats Gold
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