Welcome to the Q&A Forum

Shot in the dark here, but have you checked your Google Webmaster account for any messages from Google? I know some folks whose rankings went way down and didn't know why until they checked and found the dreaded "unnatural links"  letter waiting for them.

I'm a newbie here, but i did notice that at least one of your internal links using the keyword "childrens bedroom" is giving a 404, I suspect that could be hurting you, especially if there are more of those (check http://www.childrensfunkyfurniture.com/shelves-bookcases)

Also, have you made any changes lately? it looks like your home page has little content outside of product links, did you have more before?

Just my 2 cents

Ken