I’m new to web development so I don’t know what is the norms for this. I’m trying to build a small e-commerce site. We have a lot of items. So should each item have its own separate page? Is it good for SEO?
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Yes it is very important to have individual pages for each product.
Not only individual pages, you should have the URL of the page having product name.
For example, if you are selling a Sony Xperia 2200 Mobile, make a page such as
www.example.com/electronics/mobile/sony-experia-2200.phporasp..If your site is dynamic, read on Google how to make your web URL static.
Look at how Amazon does it:
http://www.amazon.com/RCA-AH16100SN-16-Gauge-Speaker-Wire/dp/B0029HHIDY/